April 2018



Digital Realty Trust: Implications for Whistleblowers and the Compliance Department


IRS Offshore Voluntary Disclosure Program to Shutdown: The End of Amnesty for International Tax Evaders?

The IRS has decided to shutdown its Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018.  The program offers amnesty from criminal prosecution and a set penalty structure for those who have previously failed to disclose foreign bank accounts and other foreign assets, including those held through undisclosed foreign entities. Failure to disclose could include failure to file the annual FinCEN Form 114,most commonly referred to as the foreign bank account report or “FBAR”, as well as the failure to report income from such accounts and assets on tax returns and the failure to provide various other foreign information forms and returns.

Easing troubled minds: Compliance and sexual abuse in sports

The Dr. Larry Nassar abuse scandal recently rocked the world of sports. Dr. Nassar, in his role as athletic trainer for the USA Gymnastics team, is alleged to have abused over 250 girls and young women, though he has only admitted to ten of the accusations. The resulting fallout has brought to light many issues in the world of amateur sports, unfortunately an issue that affects young adults and children. In particular, the US Olympic Committee is now facing multiple lawsuits from athletes who were abused by Dr. Nassar. Aly Raisman, the two time-Olympian who has become the face of Nassar’s victims, alleges that the Committee knew or should have known that Dr. Nasser was abusing her and other young girls.



Enforcing Foreign Compliance with U.S. Regulations

Compliance standards in the United States come from the laws and policies enacted by the government and its related agencies. Administering U.S. standards on foreign institutions, public or private, poses a unique challenge. Our public and private companies are held accountable by federal, state, local, or agency rules, as well as the guidelines providedby the United States Sentencing Commission. But foreign organizations, in theory, have no real obligation to follow our lead. There have been several notable attempts in recent years to enact legislation on foreign organizations and impose sanctions for noncompliance, and it is likely a continuing trend as the compliance industry grows.

Court’s Denial of Motion to Dismiss Advances Blocks of Offshore Drilling

Congress has granted the President the authority to withdraw the Secretary of the Interior’s grants of mineral rights on public lands. However, President Trump has used that same grant of power to remove withdraws of some of the protections President Obama placed. On May 3, 2017, a group of environmental non-profits filed a lawsuit against the Trump Administration in the Federal District Court of Alaska, alleging that his actions were an unauthorized use his Presidential power. On March 20, 2018, the Court denied the Defendant’s motion to dismiss.

Artificial Intelligence and Compliance

With the rise of the machine at our doorsteps, companies (those with foresight, anyhow) will be finding more innovative ways to gain the edge while using those machines. One of the ways companies will seek this edge is through the use of Artificial Intelligence (“AI”). AI is one of the hottest, and arguably controversial, topics confronting mainstream business today. Many are skeptical of it, but also hopeful, despite the controversy surrounding the field. While both sides of the controversy have their reasons, some on each side are generally clueless as to how AI is manifesting itself today, and how it will in the future. How will it be applied? What is it useful for? What follows is a primer on current applications of AI and how they may be applied to the compliance world.

Quis Custodiet Ipsos Custodes: “Who Watches the Watchmen” Oversight of Compliance Departments and Professionals

In the graphic novel and film “The Watchmen,” there is a reoccurring phrase: “Who watches the watchmen?” In context, it’s an indictment of the comic book world’s broken justice system. However, in a compliance context, the concept can be just as important. In a recent discussion with a hospital system’s compliance officer, he raised the point that a company’s compliance department is seen as the ultimate authority and expertise in laws and regulations, monitoring compliance and noncompliance, and implementing corrective and disciplinary actions. Yet while many compliance professionals may assume that their actions are always compliant, who oversees those who are overseeing systems and organizations? Who ensures that compliance is compliant?