What Do These Phrases Even Mean?
We are all prone to using vague and ambiguous terms or cliches or buzzwords at times.
However, in my opinion, many in the compliance community seem to have developed a vocabulary all of their own that, at first blush, sounds sophisticated but in reality is merely gobbledygook masquerading as expertise.
This recent post by a respected compliance practitioner is a good example.
What Evidence Is There That Compliance Programs Actually Prevent Crime?
A guest post from Jon May.
Today we ask the question: “What evidence does the United States Department of Justice or the United States Sentencing Commission have that compliance programs actually prevent crime.”
The short answer is that there is none. Let’s talk about why.
Does Fear Motivate Compliance?
One component of Foreign Corrupt Practices Act compliance so-called “best practices” is training. But what type of training best minimizes FCPA risk?
Consider two types of training: the first legalese, fear-based training and the second, spot the issues type of training.
As to the first type of training, what sort of participate reaction would result if the trainer begins with saying something along the following lines: “Today I will be talking about a U.S. law that makes it a crime to bribe foreign government officials to get business. Your failure to abide by this law could result in you going to jail.”
Speaker Fees
Numerous Foreign Corrupt Practices Act enforcement actions have involved the enforcement theory that various foreign health care professionals (HCP’s) are “foreign officials” and thus occupy a status similar to a President, Prime Minister, or other traditional bona fide government official.
Several of these enforcement actions have included allegations that HCP’s received speaker fees or honoraria from pharmaceutical or medical device companies.
For instance, the Sanofi enforcement action included allegations that an HCP was provided “with consulting, speaking, and clinical trial fees over a period of years despite the lack of documentation or other support to demonstrate the services had been provided.”
Potpourri
[To the best of my recollection, my first introduction to the word “potpourri” was in watching Jeopardy which I was very fond of as a teenager and young adult. Rest in peace Alex Trebek]
Lingo
Daniel Kahn (Acting Chief of the DOJ Fraud Section) was the guest on this recent episode of the Compliance Perspectives Podcast. During the podcast, Kahn talks about COVID’s impact on DOJ enforcement and certain recent enforcement actions such as Goldman Sachs and Beam.
In terms of the DOJ’s mid-2000 revision to its “Evaluation of Corporate Compliance Programs” policy document, Kahn stated that it certainly is by no means a “game changer.” Call me old-fashioned, but I want to hear the DOJ Fraud Section Chief talk about the law and legal requirements not lingo. Yet, the podcast dishes up plenty of lingo (tone at the top, conduct at the top, tone of upper and middle management, empowering compliance, walking the walk, direct line to the board, dotted line to the board, etc.).