Monday Compliance News - Around the World

GCSG's Monday Compliance News is a compilation of some of the previous week's interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

KPMG slapped with $6.2m fine over oil company audit errors | Financial Times

"KPMG has been slapped with a fine of more than $6.2m by the US Securities and Exchanges Commission after it signed off the audit of an oil and gas company that had overvalued certain assets by more than 100 times." (Click here for the article) - USA

US takes firm stance on NAFTA as first round of re-negotiations is wrapped up | Bloomberg

"The first round of NAFTA re-negotiations ended Sunday with America’s lead negotiator demanding more car parts be manufactured in the U.S." (Click here for the article) - USA, Canada, Mexico

Can the US scrap its trade deal with South Korea? | WSJ

"The U.S. and South Korea wrapped up fruitless talks over a trade agreement that protectionist Washington blames for an imbalance requiring the pact’s amendment or termination." (Click here for the article) - USA, South Korea

US treasury sanctions Chinese, Russian firms for aiding North Korea | WSJ

"The U.S. on Tuesday targeted a host of Chinese and Russian firms and related individuals it accuses of aiding Pyongyang, expanding its broader efforts to clamp down on financing critical to North Korea’s nuclear-weapons program." (Click here for the article) - USA, China, Russia, North Korea

NAFTA under Trump: Will it stay or will it go? | Global Trade

"We all know that President Donald Trump campaigned against NAFTA in the lead-up to last November’s election, calling it “the worst trade deal ever.” Even after he took office in January, Trump warned the United States would leave the North American Free Trade Agreement if the deal wasn’t renegotiated favorably to the US." (Click here for the article) - USA, Canada, Mexico

DOJ's largest health care fraud enforcement action | Corporate Compliance Insights

"Recent DOJ and Department of Health and Human Services charges were brought against 412 defendants, across 30+ states, with defendants accused of defrauding taxpayers of approximately $1.3 billion. It’s been described as the largest health care fraud enforcement action in DOJ history. In light of the varied health-care-related business practices that are the subjects of the major health care prosecutions, private health providers should scrutinize and review their compliance plans, practices and procedures." (Click here for the article) - USA

Final TSCA inventory reset rule now effective; clock is ticking for companies to report | Lexology

"On August 11, 2017 EPA published in the Federal Register the final TSCA Inventory Notification (Active-Inactive) Rule -- commonly referred to as the “Inventory Reset Rule.” The rule, which is effective immediately, creates new reporting obligations for companies that manufacture or import chemical products. Companies that process chemicals in order to manufacture articles or to create formulated chemical products are also affected by the rule." (Click here for the article) - USA

EU looks to protect its firms from US sanctions | WSJ

"Foreign-policy differences between the European Union and the U.S. are widening, forcing EU leaders to once again ponder how to stop American sanctions from targeting European companies." (Click here for the article) - USA, Europe, Russia, Cuba, Iran

New Report: Anti-money laundering efforts near failure | Fact Coalition

"Worldwide anti-money laundering efforts are currently just a decimal point away from total failure, according to a new report published Wednesday by the Financial Accountability and Corporate Transparency Coalition (FACT Coalition), a non-partisan alliance of more than 100 state, national, and international organizations promoting policies to combat the harmful impacts of corrupt financial practices." (Click here for the article) - Global

US Bid to exit NAFTA arbitration panels draws ire from businesses | WSJ

"U.S. trade officials are putting together a proposal to let the U.S. withdraw from a corporate arbitration system at the heart of the North American Free Trade Agreement, upsetting big American companies that say the system protects their investments overseas." (Click here for the article) - USA, Canada, Mexico

Amazon under investigation for potential Iran sanctions violations | Fox Business

"Ecommerce giant Amazon is under federal investigation for potential violations of the U.S. government’s sanctions against Iran, including sales to an individual listed on the terrorism watch list, the company said in a regulatory filing last Friday." (Click here for the article) - USA, Iran

Treasury targets Chinese and Russian entities and individuals supporting North Korean regime | US Dept. of Treasury

"The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 10 entities and six individuals in response to North Korea’s ongoing development of weapons of mass destruction (WMD), violations of United Nations (UN) Security Council Resolutions, and attempted evasion of U.S. sanctions.  Today’s sanctions target third-country companies and individuals that assist already-designated persons who support North Korea’s nuclear and ballistic missile programs; deal in the North Korean energy trade; facilitate its exportation of workers; and enable sanctioned North Korean entities to access the U.S. and international financial systems.  As a result of today’s action, any property or interests in property of the designated persons in the possession or control of U.S. persons or within the United States must be blocked, and U.S. persons are generally prohibited from dealing with them." (Click here for the article) - USA, China, Russia

China has a message for Western companies: corruption does not pay | South China Morning Post

"Last month, a court in Lanzhou city jailed and fined six Nestlé employees, after a years-long investigation into bribery allegations surrounding sales of baby formula. In 2013, Reuters found that Nestle’s staff regularly bribed hospital staff in China to exclusively supply its milk formula to newborns. That practice ran afoul of a 1995 law that bars health practitioners from promoting formula over breastfeeding. It also contravened global guidelines of the World Health Organisation." (Click here for the article) - China, USA, UK, New Zealand, Australia, Singapore