Daniel Kahn on the Latest from the Fraud Section at the US Department of Justice [Podcast]


Post By: Adam Turteltaub

In the latest episode of the Compliance Perspectives podcast we are joined by Daniel Kahn, the Acting Chief of the Fraud Section at the Department of Justice.

We begin the conversation with a discussion of the latest iteration of the Criminal Division’s document: Evaluation of Corporate Compliance Programs. He explains that it was designed to leverage what had been learned since the last version of the document was released as well as to incorporate input from the compliance community. The DoJ, he notes, continually reevaluates its internal policies.

The conversation then proceeds into a discussion of some of the main points compliance professionals — and the business people they work with — should take away from the document. One key piece of learning: the Criminal Division is eager to understand the thought processes behind the compliance program. They want to know, for example, not just what resources were allocated but why they were allocated.

A second lesson: the Fraud Section is very eager to know if an organization is collecting data on its compliance program, integrating and using it. If that data is held in separate silos, it will not look good in a prosecutor’s eyes.

We also discuss FCPA prosecutions, including the record breaking Goldman Sachs resolution and the Beam Suntory case, in which the company’s lack of cooperation was cited. Both of these very recent enforcement actions have extensive lessons for compliance teams.

There is also a good conversation about due diligence, what the DoJ expects during a pandemic, and the fact that just because the business may have shrunk its workforce by 10% doesn’t mean that the risk profile has been reduced by 10% and the compliance team should be cut by 10%.

Listen in to learn more about how to improve the effectiveness of your compliance program and what the DoJ is looking for if it starts examining your efforts.