Due diligence in Russia has never been simple. Two recent developments make it more complicated. One makes business more transparent. Sort of. The other makes it less transparent. Foreign companies working in Russia will place themselves at peril if they don’t pay close attention to both.… Continue Reading
The British press reported over the weekend that a Russian interior ministry official could become the next leader of Interpol, despite concerns that the Putin regime has abused the agency to target political opponents.… Continue Reading
The Pennsylvania-based consultant who bribed an officer at the European Bank for Reconstruction and Development for loan approvals lost his appeal against a 60-month prison sentence for violating the Foreign Corrupt Practices Act.… Continue Reading
On August 14, 2018, new amendments to the Russian Code on Administrative Offenses (Administrative Code) related to bribery by legal entities went into effect. The new provisions establish conditions exempting companies from liability for bribery if those companies assist authorities in uncovering and investigating misconduct.… Continue Reading
Only yesterday they were pimply FCPA nerds. But a strange thing happened. They morphed into the cool kids.
Today’s compliance officers are famous and wanted.
Here’s some evidence.
With the proliferation of OFAC designations of Russian businesspeople, trying to predict whether or not someone will be designated as a Specially Designated National (SDN) has become an important part of third party due diligence on Russian business partners.
SDNs are completely cut off from the U.S.… Continue Reading
A British critic of Russian president Vladimir Putin was detained by Spanish police Wednesday on an international arrest warrant that Russia requested through Interpol.
Financier Bill Browder tweeted that police in Madrid released him after Interpol’s general secretary in Lyon, France, instructed Spanish police not to honor Russia’s arrest request.
He was held for about an hour.… Continue Reading
Russian President Putin recently submitted a new anti-corruption bill to the Russian parliament.
The proposal has two significant aspects.
First, it would amend Article 19.28 of the Russian Code of Administrative Violations (which was previously amended in 2011 to impose liability on corporations for bribery, including domestic and foreign, public and private) to provide that companies can avoid liability in domestic bribery cases if
(i) they assist in the discovery or investigation of the bribe or
(ii) the bribe has been extorted.
Second, the proposal would allow courts to freeze the property of corporations under investigation for bribery up to the maximum amount of possible fine.
Given Russian practice, we can expect the amendments to pass relatively quickly and with few changes.… Continue Reading
A Transparency International-Russia report published in January assessed the efficacy of the anti-corruption programs of over 200 Russian companies, who together generate more than 70 percent of Russia’s national income.
While the report mainly calls for the majority of the companies named to implement remedial measures, it is worth noting and commending the highest-scoring companies, who provide exemplary models for their counterparts in the anti-corruption space.… Continue Reading