This issue contains practical guidance for Aerospace & Defense companies to effectively manage corporate compliance efforts across multiple jurisdictions.
We also highlight key takeaways from the Firm’s recent Canada Aerospace & Defense and Deferred Prosecution Roundtables – including best practices for effectively leveraging compliance programs and internal investigations to negotiate DPAs in the US, the UK and Canada.
Update: 5 Essential Elements of Corporate Compliance
Aerospace & Defense companies – with customers that include governments and defense agencies, partners over which they may have limited control/oversight and operations in countries with higher levels of corruption – face heightened scrutiny with respect to corruption and bribery. The A&D industry is highly regulated, and companies with international operations must conform with compliance program guidance that may vary across jurisdictions. Complying with such a wide range of regulations and expectations is challenging, and failure to comply could lead to severe consequences, including government enforcement actions and blacklisting.
Baker McKenzie has marshaled its global reach to distill key themes – five essential elements of corporate compliance – that are common to all programs. We are pleased to announce that the newly revised and updated edition of 5 Essential Elements of Corporate Compliance is now available. The 2018 edition of the publication provides fresh expert insight on effectively managing corporate compliance efforts in today's evolving regulatory and enforcement environments.
5 Steps To An Anti-Corruption 'Culture Of Compliance'
For any company, creating a corporate culture of compliance - in which employees comply with legal requirements like the FCPA and other anti-corruption laws, and act with honesty and integrity as required by the company's Code of Ethics - is incredibly important. The importance of a compliance culture was the subject of a discussion at an Aerospace & Defense luncheon in our Washington, DC office on June 6. Creating a culture of compliance within a company can mean the difference between real compliance, as reflected in the company's everyday business operations, and a paper compliance program that involves mechanical, check-the-box activities that do not reflect employees' underlying values and do not impact employees' conduct or behavior in carrying out the company's business operations.
Canada Aerospace & Defense Roundtable
Baker McKenzie hosted the Canada Aerospace & Defense Roundtable featuring keynote speaker General Tom J. Lawson CMM, CD, Fmr CDS and Commander of NORAD. We had an interactive discussion about the security challenges facing Canada and its allies around the world. General Lawson provided a comprehensive overview of the current A&D landscape. Click here to watch an interview with General Lawson following the roundtable and read more to learn about key takeaways from the program.
DPAs in Canada
Deferred prosecution agreements ("DPAs"), in which a defendant must comply with specific written terms (often involving a fine and imposition of a compliance monitor to report to the government on a company's progress), have been used routinely in the US to address corporate criminal liability, particularly in connection with allegations of foreign bribery. Because the Aerospace & Defense industry is so heavily regulated, A&D companies are subject to greater scrutiny by a number of government agencies and are particularly vulnerable to FCPA exposure. For such companies, DPAs offer a viable mechanism to manage risk associated with criminal liability.
DPAs were first introduced in the UK in 2014, and have since been utilized several times in the UK to resolve criminal charges. More recently, Canada announced its version of a DPA – a remediation agreement regime that would incentivize companies to self-report potential wrongdoing and encourage stronger corporate compliance. The legal and policy issues implicated by the introduction of DPAs in Canada, and best practices for effectively leveraging compliance programs and internal investigations in negotiating DPAs, were discussed at the recent Deferred Prosecution Roundtable. Read more to learn about the key takeaways from the program. Click here to view an interview with Baker McKenzie practitioners Peter MacKay and Chris Burkett following the event.