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Checking In On Wal-Mart’s Pre-Enforcement Action Professional Fees And Compliance Enhancements

Wal-Mart

In yesterday’s 4Q FY2018 earnings call presentation WalMart disclosed $7 million in Foreign Corrupt Practices Act and compliance related expenses ($4 million for ongoing investigations and inquiries and $3 million for global compliance program and organizational enhancements).

The Q4 expenses of $7 million compare to the following recent quarterly expenses: Q3 FY2018 $5 million, Q2 FY2018 $12 million, Q1 FY2018 $16 million; Q4 FY2017 $17 million; Q3  FY2017 $29 million; Q2 FY 2017 $28 million, and Q1 FY2017 $25 million).

Doing the math, Wal-Mart’s 4Q FY2018 FCPA and compliance-related costs is approximately $113,000 per working day.

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Associate Attorney General Rachel Brand Takes A Position At Walmart And Some People Seemingly Hyperventilate

take a deep breath

Last week, Walmart announced that DOJ Associate Attorney General Rachel Brand will “join the company as Executive Vice President, Global Governance and Corporate Secretary” and “be responsible for the organization’s Legal, Global Ethics and Compliance and Global Investigation, Security, Aviation and Travel departments, along with her role as corporate secretary.”

It was funny to see some on social media seemingly hyperventilate about this development.

Surely this must be connected to Wal-Mart’s long-standing FCPA scrutiny the inference seemed to be.

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Friday Roundup

Roundup

Former SEC FCPA Unit Chief Kara Brockmeyer on declinations and voluntary disclosure, Wal-Mart’s global chief ethics and compliance officer on increased standardization in global anti-corruption efforts, scrutiny updates, French first, and for the reading stack.

It’s all here in the Friday Roundup.

Former SEC FCPA Unit Chief Kara Brockmeyer On Declinations and Voluntary Disclosure

Brockmeyer is profiled in this recent Corporate Crime Report Q&A. (See here for a recent FCPA Flash podcast with Brockmeyer).

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Checking In On Wal-Mart

Wal-Mart

In today’s 3Q FY2018 earnings call presentation and related transcript, Wal-Mart disclosed that “discussions with the government agencies in the FCPA matter have progressed to the point that the company recorded an accrual of $283 million, or $0.09 per share … regarding the possible resolution of the FCPA matter.”

Against the backdrop of certain commentators using the “b” word (as in billions), I predicted from the start, guided by FCPAnalytics, that Wal-Mart’s Foreign Corrupt Practices Act enforcement action was unlikely to be a top five FCPA settlement amount of all-time. If the $283 million amount holds, the Wal-Mart enforcement action will not even be in the top ten FCPA settlements of all-time.

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Jay Jorgensen On Walmart’s Enhanced Ethics & Compliance Program

jorgensen2

Recently Jay Jorgensen (Walmart Executive V.P. and Global Chief Ethics and Compliance Officer) delivered a keynote address at The FCPA at 40 symposium hosted by Texas A&M University School of Law on October 12th.

Portions of Jorgensen’s address are published below with permission. Jorgensen’s entire keynote address will be published in a forthcoming issue of the Texas A&M Law Review. In the excerpted portion, Jorgensen talks about the transformation of Walmart’s ethics and compliance program with a focus on anti-corruption. Specifically, Jorgensen discusses Walmart’s approach to: third-party due diligence and payments; licenses and permits; donations and charitable contributions; financial controls; and enhanced training.

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