Welcome

FCPA Training for a Global WorkforceAvoiding Penalties Associated with Non‐Compliance

Presented by viaLanguage and CPA Global

Today’s Agenda ‐ Scott

• Trends in global corruption & enforcement

• Key issues to address in trainingy g

• Developing a web‐based training program

• Wrapping up & questions

• Low cost tips for maintaining compliance content

Wrapping up & questions 

Your Presenters ‐ Scott

• Juliet HannaSenior Counsel, Client Engagement Management, CPA Global

• Julie BrinkDirector of eLearning viaLanguageDirector of eLearning, viaLanguage

• Scott Herber(moderator), EVP Sales, viaLanguage

Trends in Global Corruption & Enforcement 

Foreign Corrupt Practices Act JH

Two parts:1. Anti‐bribery  2. Accounting, books and records2. Accounting, books and records  

FCPA Anti‐bribery provisions ‐ JH

Prohibit:‐Any issuer, domestic concern or person acting within the United States from‐Corruptly making any offer, payment, promise to pay, or authorizing the payment of‐Anything of valueTo a foreign official (including officials of international organizations political‐To a foreign official (including officials of international organizations, political parties, party officials or candidates for public office) or‐To any other person while knowing that something of value will be offered, given or promised, directly or indirectly, to a foreign government official‐For the purpose of influencing official action or securing any improper business advantage‐To obtain or retain business, or to direct business to any person.

FCPA Accounting Provisions‐ JH

Books & RecordsR i i “ k d k b k d dRequires issuers to “make and keep books, records and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets.”

Internal accounting controlsRequires issuers to devise and maintain accounting controls sufficient to provide reasonable assurances that transactions are executed into provide reasonable assurances that transactions are executed in accordance with management’s instructions, recorded as necessary to permit preparation of financial statements in accordance with GAAP, that access to assets is controlled according to management’s g ginstructions, and that records are reconciled with existing assets at reasonable intervals.

‐NOTE:  No materiality requirement

FCPA Enforcement Trends‐ JH

U.S. Department of Justice & U.S. Securities and Exchange Commission – overlapping jurisdiction to enforce the FCPA

606 year change – enforcement counts

new specialized units

40

50

new specialized unitsIncreasing enforcement activity

20

30

DOJ

SEC

0

10

SEC

2004 2010

FCPA Monetary Penalties  ‐ JH

Significant monetary penalties forSignificant monetary penalties for violations of the FCPA

•KBR/Halliburton (2009) ‐ $579 million•BAE Systems (2010) ‐ $400 million•Technip (2010) ‐ $238 millionp ( ) $•Daimler (2010) ‐ $185 million

Siemens Example, 2008 ‐ JH

Pleaded guilty to criminal internal controls and books and records violations.  Three subsidiaries pleaded guilty to conspiracy to violate the FCPA  + penalties to German authorities.  authorities.

Penalties paid •DOJ : $450 millionDOJ : $450 million•SEC settlement:  $350 million (disgorgement)•German authorities: €395 million•German authorities:   €395 million•Munich District Court:   €201 million•German tax authorities:  €179 million 

Important elements for an Anti‐Corruption Compliance Programp g

JH

Multiple Components ‐ JH

JH

FCPA Compliance ‐ JH 

I t t l t f A ti C ti C li PImportant elements for an Anti‐Corruption Compliance Program

f h1. Tone from the top2. Compliance officer3. Clear policyp y

Account for other anti‐corruption laws in addition to FCPA (e.g., UK Bribery Act)

4 Internal controls monitoring and review4. Internal controls, monitoring and review5. Due diligence6. Reporting system

i i i h l i l7. Training with multiple touch points

Communication & Training ‐ JH

Reinforce with multiple touch pointsReinforce with multiple touch points

1. Clearly written guidelines, policy and Code of Conduct

2 O i t i i il i d l tt i2. Ongoing training – emails, ipods, newsletters, in person sessions, web and mobile training 

**Key issues:  agents/consultants, commissions, gifts & entertainment, charitable contributions

FCPA Compliance TrainingFCPA Compliance Traininga web‐based approach

Needs Assessment ‐ JB

• Compliance measurements in place? • Is testing done? Tracked? What happens to the• Is testing done? Tracked? What happens to the results?• How are updates issued? Frequency? Local orHow are updates issued? Frequency? Local or organizational  compliance regulation updates?  • What is being done now that is effective?

http://www.netdimensions.com/downloads/whitepapers/NetD_wp_Compliance_enUS.pdf

Anti‐bribery & Code of Conduct ‐ JB

Training should address compliance risk and be tailored to:• Company culture• Company standardsR l i k f d b i i t d b i li t• Real risks faced by recipients and business climate

Also include:Also include:• Scenario‐based and interaction components• Tracking and reporting

Who’s the Recipient?  pDesign the e‐learning course with role/training variations ‐ JB

• New employeesNew employees• Seasoned employees for refresher or recurring required training• Vendors/contractors/third parties• Different roles and risk scenarios

Benefits to Web and Mobile Training‐ JB

• Easy access for recipientsy p• Delivered quickly and with less cost than live training• Customizable to each region or recipient• Easy to update and maintain • Online testing and tracking• More control• More control 

Global Challenges for Compliance TrainingGlobal Challenges for Compliance Training‐ JB

Customize course elements for theCustomize course elements for the location

• Local relevant content• Local, relevant content• Policy and law differences• Images and branding• Images and branding• Workflow systems and process 

Tips for developing web‐based training and minimizing costg

Rapid vs Custom Training ProgramsRapid vs. Custom Training Programs ‐ JB

Rapid                   In‐between Custom

$$$ $$$

$Articulate, Captivate

Articulate, Captivatew/custom Flash

elements

Flash built

Low interactivityLevel 1-2 interactivity

Interactive elementsLevel 1-3 interactivity

High interactivity + simulation

Level 2-4 interactivity

5 FACTORS to Consider Rapid Development Semi‐customDevelopment

Custom Development

Time to develop 2‐3 weeks 3‐6 weeks  6‐12+ weeks

Budget Less than $5K per hour $5‐$ 20K per hour $ 20k + per hour

Rapid development works well for lower l i l l f i f i dAudience size Any, but best with 

smaller audiences under 200 

Any Anylearning levels – facts, information and knowledge sharing. 

Learning goals   Informative, Comprehension and Application  (Skill 

Application, Analysis, Evaluation (Process change)  

Evaluation, synthesis (Process and Behavior change)  

Simple orientation/induction trainingProcedural training

Product knowledge updatesImprovement, facts, information and knowledge sharing)

Course complexity Low no to light Medium light version of High animations

Product knowledge updatesCompliance training

Course complexity Low – no to light branching, animations, video

Medium – light version of interactivity and customization

High–animations, simulations and social interactivity

Plan with Internationalization in mind ‐ JB

Internationalize codeDesign or “modularize” for cultureDesign or  modularize  for culture and regionApply translation memorypp y y Audio recording per character and language 

Mobile

Pros•Reduces training costsReduces training costs•Broad reach•Technology is availableM bil d li t d•Mobile delivery expected

•Continual access

Cons•Multiple device types•Anticipate poor adoptionAnticipate poor adoption•Less screen space; shorten content

Deployment and tracking ‐ JB

• Learning Management System (LMS) & Content management (CMS) considerationsmanagement (CMS) considerations

• Benefits • Ease of updates and maintenanceEase of updates and maintenance• Reporting and tracking needs

• How• Custom portals• Company LMSO S /M dl• Open Source/Moodle

Summary‐ Scott

• Trends in global corruption & enforcement

• Key issues to address in trainingy g

• Developing a web‐based training program

• Low cost tips for maintaining compliance content

Thank You! ‐ Scott

Contact us at:viaLanguage503.243.2007

www.viaLanguage.comg gFacebook.com/viaLanguageTwitter.com/viaLanguage

CPA Global703.739.2234

www.cpaglobal.com