Compliance into the Weeds

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into compliance-related topics, literally going into the weeds to explore a subject in greater depth. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss the recent BAE export control enforcement action. Matt views the BAE export control enforcement action as a strong example of how ITAR compliance failures often stem from routine breakdowns in day-to-day operations rather than dramatic smuggling schemes. He notes that BAE’s U.S. subsidiary sent technical information and services overseas without proper licenses, including to China and even some allied countries, showing that export controls apply to both data and services, not just physical weapons. Kelly argues that the case reveals common compliance weaknesses such as poor training, unclear procedures, weak system warnings, and employee turnover that can leave staff unsure of the rules. His broader point is that companies in export-controlled industries must maintain current licenses and build strong, monitored compliance programs because governments will continue using export controls as an important geopolitical tool. Key highlights: ITAR data shipments trigger BAE’s $36 million penalty Broken execution in day-to-day compliance operations Export-control warnings before sensitive file transmission Missing Red-Flag Prompts in Export Control System Self-Disclosed, Cooperated, Remediated, Monitored by Another Name Resources: Matt in Radical Compliance Tom Instagram Facebook YouTube Twitter LinkedIn A multi-award-winning podcast, Compliance into the Weeds was most recently honored as one of the Top 25 Regulatory Compliance Podcasts, a Top 10 Business Law Podcast, and a Top 12 Risk Management Podcast. Compliance into the Weeds has been conferred the Davey, Communicator, and W3 Awards, all for podcast excellence. Learn more about your ad choices. Visit megaphone.fm/adchoices

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into compliance-related topics, literally going into the weeds to explore them in greater depth and uncover hard-hitting insights. Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss the DOJ’s “McDonald Memo.” This DOJ Memo outlines a new Trump administration fraud division that broadly claims jurisdiction over “all types of fraud,” potentially reshaping DOJ enforcement and creating uncertainty about overlapping authority with existing divisions (e.g., antitrust). They review five priority areas: a. public trust/financial integrity fraud (procurement, bid rigging, grants, social welfare), b. healthcare fraud, c. internal revenue fraud, d. global trade and commerce fraud (tariffs/customs), and e. an undefined “corporate misconduct” category. From a compliance perspective, they urge companies to reassess risk areas (healthcare, importers, and government contractors), strengthen third-party oversight and documentation, and “pressure test” compliance programs with transparency and recordkeeping. They also warn that politicized enforcement and unclear guidance—such as on cartel-related liability—complicate compliance strategy and may tempt leaders to treat settlements as a cost of doing business. Key highlights: McDonald Memo Overview Fraud Division Scope and Uncertainty Five Fraud Categories Explained Corporate Misconduct Questions Compliance Program Impacts Documentation as Defense Mexico Cartels and Strict Liability Resources: Matt in Radical Compliance Tom Instagram Facebook YouTube Twitter LinkedIn A multi-award-winning podcast, Compliance into the Weeds was most recently honored as one of the Top 25 Regulatory Compliance Podcasts, a ⁠Top 10 Business Law Podcast⁠, and ⁠a Top 12 Risk Management Podcast⁠. Compliance into the Weeds has received Davey, Communicator, and W3 Awards, all for podcast excellence.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more fully. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss a newly issued FinCEN consent order sanctioning UBS Financial Services, the U.S. broker-dealer subsidiary of UBS. It is a $125 million penalty, the largest FinCEN fine against a broker-dealer, for extensive anti-money laundering failures. They highlight weak transaction monitoring and suspicious activity reporting (SAR) processes, poor customer due diligence, inadequate wire-transfer data collection, and data governance gaps that led to under-reporting and hindered FinCEN’s ability to build a complete money-laundering picture. The order notes UBS failed to monitor more than 50,000 foreign-currency wires totaling over $10 billion and did not disclose ongoing deficiencies discovered after a 2018 $14 million FinCEN action requiring fixes by 2021, with problems traceable back to 2004 and not addressed until 2023. They frame the matter as a tone-at-the-top and resourcing failure, compare it to other enforcement actions (including a recent SEC fine against Merrill Lynch), and suggest a future deeper dive after reviewing the full order. Key highlights: What UBS Got Wrong Scale Of The Failures Board Oversight and Resourcing Data Governance Breakdown SARs, Metrics, and AI Talk Takeaways and Next Steps Resources: ⁠USB Consent Order⁠  Tom   ⁠Instagram⁠ ⁠Facebook⁠ ⁠YouTube⁠ ⁠Twitter⁠ ⁠LinkedIn⁠ A multi-award-winning podcast, Compliance into the Weeds was most recently honored as one of the Top 25 Regulatory Compliance Podcasts, a ⁠Top 10 Business Law Podcast⁠, and ⁠a Top 12 Risk Management Podcast⁠. Compliance into the Weeds has been conferred a Davey, Communicator, and W3 Award, all for podcast excellence.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore it in greater depth. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss the June 29 Supreme Court decision in Trump v. Slaughter. This decision upheld the president’s power to fire independent agency commissioners at will (with a carve-out for the Federal Reserve), overturning long-standing protections from Humphrey’s Executor. Kelly argues the ruling will politicize and degrade regulatory agencies, deter qualified minority-party commissioners, increase rulemaking volatility, and shift power away from Congress toward courts as rules are challenged. As an example, they cite the SEC’s proposal to allow semi-annual rather than quarterly reporting, which drew about 80,000 comments, with roughly 99% opposed, yet they predict it may proceed and later be reversed, creating compliance burdens. They then cover Georgia author Jean Wilson, sentenced to 10 years for a $66 million Medicare fraud scheme while writing healthcare compliance books. Key highlights: The Slaughter Ruling Regulatory Volatility Ahead Who Will Serve as Commissioners Fed Carve-out and Court Power Compliance Impact and No Easy Answers Healthcare Compliance Fraud Story (Or is it from The Onion?)  Resources: Matt in Radical Compliance  Tom Instagram Facebook YouTube Twitter LinkedIn A multi-award-winning podcast, Compliance into the Weeds was most recently honored as one of the Top 25 Regulatory Compliance Podcasts, a Top 10 Business Law Podcast, and a Top 12 Risk Management Podcast. Compliance into the Weeds has been conferred the Davey, Communicator, and W3 Awards, all for podcast excellence. Learn more about your ad choices. Visit megaphone.fm/adchoices

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore it in greater depth. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss the recent Bosch export controls enforcement action involving two German subsidiaries that sold about $72 million in advanced microsensors and software to Huawei from 2020 to late 2024 Their actions violate U.S. export controls tied to the Foreign Direct Product Rule and 2020 “footnote one” restrictions. Although Bosch voluntarily self-disclosed, cooperated, remediated, disgorged profits, and received a DOJ criminal Declination, BIS imposed a $36.1 million civil penalty, citing fundamental compliance failures: an understaffed and underqualified export controls function, confusion between the de minimis rule and the foreign direct product rule (which has no de minimis exception), and mishandling repeated external warnings from business partners and suppliers. They highlight internal control and communication breakdowns (including external signals) and the need to build specialized export/sanctions compliance capacity, noting BIS issued a compliance framework in 2020 and offers training. Key highlights: Bosch case overview Understaffed compliance fallout Ignored partner warnings Declination and remediation COSO signals and controls Building export compliance muscle Resources Matt in Radical Compliance Tom in the FCPA Compliance Blog: Part 1, Part 2, Part 3, Part 4, and Part 5 posts on Thursday, June 25. Tom Instagram Facebook YouTube Twitter LinkedIn Learn more about your ad choices. Visit megaphone.fm/adchoices

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore it in greater depth. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss a recent slowdown in compliance and internal audit hiring, with more layoffs and fewer job openings over the last several months. Matt attributes the “frozen” market to broader economic uncertainty, tariffs, the war in Iran, which is driving higher energy costs, and erratic regulatory enforcement, all of which, combined with executives’ indecision about AI’s costs and impact, lead companies and employees to avoid change. They note structural competition at senior levels due to a larger, more experienced talent pool and the limited number of top roles, while acknowledging opportunities in compliance-adjacent paths such as HR, legal, governance, and integrity functions, depending on experience and credentials. Matt suggests focusing on interpersonal and cross-functional skills AI can’t replace and highlights continued demand in trade compliance, whistleblowers, and anti-fraud/False Claims Act work. Key highlights: Compliance Job Market Shift Why Hiring Feels Frozen AI and Executive Uncertainty Talent Supply and Senior Roles Career Moves and Branding Where Hiring Still Happens Resources: Matt in Radical Compliance Tom Instagram Facebook YouTube Twitter LinkedIn A multi-award-winning podcast, Compliance into the Weeds was most recently honored as one of the Top 25 Regulatory Compliance Podcasts, a Top 10 Business Law Podcast, and a Top 12 Risk Management Podcast. Compliance into the Weeds has been conferred a Davey, a Communicator Award, and a W3 Award, all for podcast excellence. Learn more about your ad choices. Visit megaphone.fm/adchoices

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore it more fully. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss how internal dysfunction at the U.S. Department of Justice is creating uncertainty for corporate compliance teams and corporations more generally. Focusing on a reported turf battle between the long-standing Fraud Section in the Criminal Division, established in 1955 and central to FCPA enforcement and compliance guidance, and a newly created national Fraud Division, which was initially framed as targeting government benefits fraud. They argue that the reorganization could drain expertise, reduce future DOJ guidance, and distort enforcement into politically selective actions, citing IBM’s $17 million settlement, an EEOC case involving The New York Times and Smartmatic, and Smartmatic’s experience. They also highlight DOJ staffing losses with a net 20% fewer lawyers, loss of experienced attorneys, reliance on inexperienced hires and bonuses, and warn that the volatility may chill voluntary self-disclosure despite DOJ messaging encouraging it. Key highlights: DOJ Train Wreck Overview Fraud Section vs Fraud Division Political Enforcement Reality Self-Disclosure Gets Riskier What Companies Should Do Now Resources: Matt on Radical Compliance Tom Instagram Facebook YouTube Twitter LinkedIn A multi-award-winning podcast, Compliance into the Weeds was most recently honored as one of the Top 25 Regulatory Compliance Podcasts, a Top 10 Business Law Podcast, and a Top 12 Risk Management Podcast. Compliance into the Weeds has been conferred a Davey, a Communicator Award, and a W3 Award, all for podcast excellence. Learn more about your ad choices. Visit megaphone.fm/adchoices

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore the subject more fully. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode of Compliance into the Weeds, Tom Fox and Matt Kelly discuss a recent Law360 post by Hui Chen on the evolving calculus for self-disclosure. Hui Chen’s insights into the Department of Justice’s (DOJ) evolving self-disclosure strategies are crucial for companies navigating the complexities of compliance in today’s uncertain regulatory environment. As a former DOJ compliance counsel and a Microsoft compliance officer, Chen emphasizes the challenges posed by a politicized, understaffed DOJ, urging companies to reassess their compliance programs amid shifting enforcement dynamics. Tom and Matt echo Chen’s concerns regarding the DOJ’s current state. Tom, acknowledging Chen’s expertise, highlights the impact of the department’s politicization and understaffing on the effectiveness of compliance efforts, while Matt underscores the importance of proactive self-disclosure despite uncertainties, stressing the potential risks of inaction under the current administration. Both agree that the fractured nature of the DOJ requires a reevaluation of traditional compliance and self-disclosure strategies. Key highlights: Navigating DOJ Self-Disclosure Strategies with Wei Chen Justice Department’s Impact on Corporate Prosecutions Mitigating Criminal Violations through Self-Disclosure Benefits of Self-Disclosure in Corporate Enforcement Resources: Hui Chen on Law360 (sub req’d) Tom Instagram Facebook YouTube Twitter LinkedIn A multi-award-winning podcast, Compliance into the Weeds was most recently honored as one of the Top 25 Regulatory Compliance Podcasts, a Top 10 Business Law Podcast, and a Top 12 Risk Management Podcast. Compliance into the Weeds has been conferred a Davey, a Communicator Award, and a W3 Award, all for podcast excellence. Learn more about your ad choices. Visit megaphone.fm/adchoices