SDNY's New Policy on Declinations

In this episode, Tom Fox welcomes back Hughes Hubbard partner Mike DeBernardis to discuss the Southern District of New York’s new corporate enforcement voluntary self-disclosure program for financial crimes and why SDNY leadership, including Jay Clayton, likely issued it: to encourage self-disclosure that saves enforcement resources and supports DOJ’s focus on individual accountability.   They compare the policy to (former) DOJ’s Corporate Enforcement Policy, highlighting notable distinctions such as SDNY’s narrower scope (financial/market integrity offenses) and a revised approach to aggravating factors that excludes common CEP considerations like seriousness, pervasiveness, and senior management involvement while carving out categories including foreign bribery and sanctions evasion, potentially reducing forum shopping. They also examine a “conditional declination” within two to three weeks, its implications for investigation speed and timeliness, and added pressure from whistleblower programs and compressed internal triage timelines.   Key Highlights  ·      Why SDNY Issued It ·      SDNY Significance ·      Aggravating Factors Shift ·      Does It Move Needle ·      Conditional Declination Speed ·      Whistleblowers and Pressure  Resources  Hughes Hubbard and Reed Mike DeBernardis on LinkedIn   Tom Fox Instagram Facebook YouTube Twitter LinkedIn  For more information on the use of AI in Compliance programs, my new book, Upping Your Game. You can purchase a copy of the book on Amazon.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. This is our 800th edition. In this episode, Tom Fox welcomes back Gerry Zack, who recently attended the SCCE Europe conference in Berlin. They begin by noting the differences from the U.S. national conference, including a stronger European focus on behavioral ethics, culture, and community networking. Zack highlights extensive conference attention to AI, including the shift toward agentic AI, practical compliance uses such as identifying policy gaps, enhancing third-party due diligence, and automating anomaly follow-up, while cautioning about investigative risks if AI-generated interview strategies are scrutinized in court. They discuss AI-driven fraud threats (deepfakes, fake invoices, and improved phishing) and the growing concerns about shadow AI and the improper use of confidential information. Zack also describes a company’s experience pursuing ISO 37301 and 37001 certifications and notes ongoing work and limited U.S. awareness around the UK Failure to Prevent Fraud Act. He was surprised by the profession’s continued lack of sophistication in risk assessments. Key highlights: US vs Europe Conference AI Keynote and Practical Takeaways ISO Compliance Certification UK Failure to Prevent Fraud Surprises Risk Assessment Gap Resources: Gerry Zack on LinkedIn RiskTrek Tom Fox Instagram Facebook YouTube Twitter LinkedIn Returning to Venezuela on Amazon.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom welcomes Morgan Lewis partners Carl Valenstein (international corporate law, Latin America) and Katelyn Hilferty (international trade, export controls and sanctions) on whether businesses should consider returning to Venezuela after Maduro’s arrest and President Trump’s announcement. Ed. Note: this podcast was recorded in February, and since then, OFAC has issued New and amended Venezuelan-related General Licenses. The situation remains fluid. Valenstein leads off by noting that he is counselling businesses to engage in “watchful waiting” due to continued instability, corruption, weakened institutions, security risks, uncertainty about elections, and a lack of clear U.S. incentives, such as political risk insurance. Hilferty explains that sanctions relief is narrow: two limited OFAC general licenses focused on Venezuelan-origin oil and U.S.-origin diluents, while most sanctions and broad export control restrictions remain in effect, with licenses revocable. They discuss payment and transparency concerns, large outstanding debts, and major capital and operational challenges to restore oil production. They advise companies to review licenses, establish compliance guardrails, screen counterparties, and draft contract and payment terms before pursuing opportunities. Key highlights: What Changed in Venezuela Watchful Waiting Reality Check License Reversals and Uncertainty Compliance Starting Point Checklist Cartels and Terror Designations Beyond Oil and Gas Opportunities Resources: Morgan Lewis Carl Valenstein Katelyn Hilferty Tom Fox Instagram Facebook YouTube Twitter LinkedIn Returning to Venezuela on Amazon.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, we replay a recent webinar Tom Fox participated in, hosted by EQS. The panel moderator was Steph Holmes, and the panelists were Tom Fox, Mary Shirley, and Matt Kelly. The session focuses on six key 2026 trends for ethics and compliance programs: (1) AI moving from experimentation to operational use, emphasizing deliberate scaling, human-in-the-loop oversight, governance frameworks, monitoring, and managing “shadow AI,” with practical use cases such as policy chatbots, gift/travel/entertainment reviews, and AI-enabled third-party risk lifecycle management; (2) enforcement “volatility” and unpredictable regulatory signals, with emphasis on returning to fundamentals such as documenting program inputs and outcomes, and noting continued activity, including record FCA resolutions and a DOJ whistleblower program award leading to a rapid antitrust settlement; (3) shifting employer–employee dynamics, including Gartner survey findings that 40% of employees would intentionally miss a compliance requirement to harm their organization, discussion of trust, employee sentiment, multi-generational communication differences, and the need to partner with HR while staying within organizational lanes; (4) heightened third-party and supply chain risk expectations, including cybersecurity, tariffs/tariff evasion, export controls, and the need to unify siloed risk views into a holistic third-party risk assessment; (5) anticipated increases in whistleblowing and investigation demands amid volatility, highlighting the importance of preventing retaliation, keeping reporters feeling heard through responsive communications, triage protocols, and anonymized case examples to build trust; and (6) measuring program effectiveness through a shift from outputs to outcomes, including reviewing KPIs and key risk indicators, peer review of investigations, hotline “mystery shopping,” and gap analyses against the DOJ’s ECCP and compliance program hallmarks, with special emphasis on third-party documentation and ongoing monitoring. Resources: Mary Shirley on LinkedIn Steph Holmes on LinkedIn Matt Kelly at Radical Compliance EQS Tom Fox Instagram Facebook YouTube Twitter LinkedIn Returning to Venezuela on Amazon.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode,  host Tom Fox welcomes Anik Shah, Director & Senior Legal Counsel at Sandisk, for an insightful discussion about the pivotal changes and enforcement actions around the FCPA in 2025 and their implications for 2026. In 2025, Anik Shah, a preeminent authority on FCPA and anti-corruption enforcement, offers a strategic perspective on the evolving compliance landscape. Given the recent uncertainties following an executive order and the dismissal of high-profile cases, Shah underscores the necessity for companies to maintain robust anti-bribery and anti-corruption controls, especially with potential reprioritization by the Department of Justice. He advocates a proactive risk management approach, emphasizing the importance of third-party risk management and comprehensive training to anticipate and mitigate potential FCPA issues. As enforcement focus shifts toward addressing cartel and transnational criminal organization activities, Shah advises companies to integrate anti-money laundering processes into their compliance strategies to align with global anti-corruption efforts. Key highlights: 2025 FCPA Enforcement Shifts and Uncertainty Voluntary Self-Disclosure Policy Revolution in 2025 Cartel Risk Mitigation through Compliance Integration Central Asia Construction Projects: Anti-Corruption Measures Proactive Measures: Fostering Anti-Corruption Compliance Awareness Resources: Anik Shah on LinkedIn Sandisk Tom Fox Instagram Facebook YouTube Twitter LinkedIn Returning to Venezuela on Amazon.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Marc Duncan, Chief Operating Officer at Salus Solutions, joins Tom to discuss security issues that US companies returning to Venezuela need to address upon reentering the country. They deep dive into understanding and managing security threats across domains such as finance, personnel, corporate structure, and cyber operations. Duncan discusses the importance of viewing problems abstractedly, conducting full-scale threat assessments, and the crucial role of continuous monitoring. He shares insights into working with local communities, ensuring physical and operational security, and developing crisis communication strategies. The conversation also touches on insider threats, technical surveillance countermeasures, and the need for a responsive, flexible security team. Learn how companies, including those operating in high-risk environments such as Venezuela, can effectively prepare for and mitigate risks. Key highlights: Comprehensive Threat Assessment Corporate Security and Board Involvement Assessing Organizational Risk Culture Insider and External Threats Logistics and Local Partnerships The Importance of Crisis Communication Training Final Thoughts and Recommendations Resources: Marc Duncan on LinkedIn Salus Solutions Tom Fox Instagram Facebook YouTube Twitter LinkedIn Returning to Venezuela on Amazon.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this inaugural episode of 2026, Tom Fox welcomes back Brent Carlson, a specialist in trade and economic sanctions, focusing on compliance issues related to Venezuela. Tom and Brent discuss the shifting political landscape, potential business opportunities in the energy sector, and the steps compliance professionals need to take to navigate new regulations and restrictions from the export control and trade sanctions perspective. Brent emphasizes the importance of a robust, business-aligned compliance strategy, a non-siloed approach involving all risk disciplines, and proactive dialogue with regulators. They also discuss the heightened enforcement landscape and the need for companies to remain vigilant and adaptable in a rapidly changing global environment. Key highlights: Focus on Venezuela: Navigating Export Controls and Sanctions Business Opportunities and Risks in Venezuela Importance of Understanding Business Operations Board of Directors: Asking the Right Questions Geopolitical Changes and Risk Management Resources: Brent Carlson on LinkedIn Red Flags Rising website Tom Fox Five-Part Blog Post Series on Doing Business in Venezuela on the FCPA Compliance and Ethics Blog Instagram Facebook YouTube Twitter LinkedIn Learn more about your ad choices. Visit megaphone.fm/adchoices

Today we have a special edition of the FCPA Compliance and Ethics Report as we begin a preview of speakers and presentations at the upcoming Compliance Week event The Leading Edge: Applying AI and Data Analytics in E&C, which will be held in Fort Lauderdale, January 28 and 29. In this episode, I am joined by Matt Galvin, partner at Steptoe & Johnson, to discuss his presentation with Nicole Diaz, Associate General Counsel, Compliance at OpenAI at the upcoming Compliance Week event, The Leading Edge.     They discuss Galvin's role at Steptoe, his upcoming presentation with Nicole Diaz titled 'Perspectives from Open AI and Steptoe', and the evolving landscape of compliance with AI integration. Galvin shares insights on how AI is reshaping risk management, emphasizing the need for more dynamic and transparent approaches in compliance. The conversation highlights the importance of staying current with rapid technological advancements and regulatory changes.   Key Highlights    ·      Preview of the Leading Edge Presentation ·      AI and Compliance: A New Era ·      Risk Management in the AI Era ·      Expectations from the Leading Edge Conference   Resources   Compliance Week  The Leading Edge: Applying AI and Data Analytics in E&C conference, click here. Compliance Week is offering a 20% discount to the event for listeners of this podcast. Use the discount code TFOX at registration.   Guests  Matt Galvin on LinkedIn Steptoe & Johnson   Host Tom Fox Instagram Facebook YouTube Twitter LinkedIn Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this inaugural episode of 2026, Tom Fox welcomes back his good friend and colleague, Mike Volkov, to reflect on the tumultuous year of 2025 and discuss the new trends for the upcoming year. This is Part 2 of a two-part series. This episode delves into the significance of the False Claims Act (FCA) as a critical tool for government enforcement, discussing its constitutionality and potential outcomes before the Supreme Court. The conversation expands to discuss how FCA applies across various areas, such as trade enforcement and tariffs, and how it encourages corporate whistleblowing. Additionally, the discussion highlights the growing role of technology, AI, and ChatGPT in compliance, as well as the risks associated with their use. Other focal points include the importance of conflict-of-interest programs and the impact of ethical conduct on marketplace dynamics. The episode underlines the growing scrutiny from financial institutions and private equity over compliance practices, as well as the long-term trend towards a more ethics-driven corporate culture. Key highlights: Supreme Court and Constitutionality Issues on the FCA Corporate Whistleblowers and DOJ’s Stance Technology, AI, and Compliance Risks Conflict of Interest and Ethical Culture Marketplace Accountability and Corporate Reputation Financial Institutions and Due Diligence Resources: Mike Volkov on LinkedIn Volkov Law Group Tom Fox Instagram Facebook YouTube Twitter LinkedIn Learn more about your ad choices. Visit megaphone.fm/adchoices

Today, we have a special edition of the FCPA Compliance Report, previewing speakers and presentations at the upcoming Compliance Week event, The Leading Edge: Applying AI and Data Analytics in E&C, to be held at The Westin Fort Lauderdale on January 28 and 29. In this episode, Tom Fox is joined by Roxanne Bras Petraeus, CEO of Ethena, and Andrew McBride, Founder & CEO of Integrity Bridge LLC, to discuss their presentation, “Seeing is Believing: Live AI Demos for Ethics and Compliance Leaders.“ Roxanne emphasizes the practical integration of AI within Ethena’s services and its utility for compliance leaders, while Andrew shares insights from his extensive experience in risk and compliance consulting. They highlight their upcoming presentation at The Leading Edge conference, where they will demonstrate 10 AI tools and discuss real-life use cases, opportunities, and limitations of AI in compliance. They also reflect on the evolving role of AI in data analytics and the need for transparency and data validation. Both guests express their eagerness to engage with compliance professionals and share practical insights to enhance the industry’s AI adoption. Key highlights: Preview of the Compliance Week Presentation The Importance of Effective Training AI’s Impact on Data Analytics in Compliance Expectations for the Conference Resources: Compliance Week The Leading Edge: Applying AI and Data Analytics in E&C conference, click here. Compliance Week is offering a 20% discount to the event for listeners of this podcast. Use the discount code TFOX at registration.  Guests Roxanne Bras Petraeus on LinkedIn Ethena Andrew McBride on LinkedIn Integrity Bridge Host Tom Fox Instagram Facebook YouTube Twitter LinkedIn Learn more about your ad choices. Visit megaphone.fm/adchoices