Welcome to This Week In Compliance: GAN’s weekly news roundup, where we curate the latest stories on compliance and anti-corruption to keep you informed. This week, the Chinese ex-Justice Minister faces life in prison for his involvement in a corruption scandal. Read the full story and more news below:
Chinese Ex-Official Facing Life in Prison for Corruption
Former Chinese Justice Minister Fu Zhenghua was sentenced to life in prison for his role in a corruption and bribery scandal. The conviction and sentencing comes as China has increased its scrutiny and purging of public officials involved in corruption ahead of a Communist Party congress meeting set to take place this year. Zhenghua was convicted of taking bribes in excess of USD 16M. Along with Zhenghua, other officials including three former police chiefs received life sentences, as it was believed that the group were conspiring together.
Israel Sees Record Increases in Money Laundering and Organized Crime
Money laundering and organized crime is up more than 12% in Israel, according to a new report released by the Authority for the Prohibition of Money Laundering and Terrorist Financing. The increase was seen over a period of just one year, from 2020 to 2021. Among the types of crimes seen were extortion schemes and bribery scandals. Watchdog groups say that some organized crime activity disproportionately targets Arab citizens in the country and that Israel’s policies meant to dissuade criminal activity are negligent.
Modern Slavery Continues to Rise, ILO Says
The number of people forced into modern enslavement is continuing to rise, according to a troubling new report released by the International Labor Organization (ILO). The report found that, on average, there are more than 27 million people in forced labor on any given day. The majority of cases involve the systemic withholding of wages from workers, and in some cases the removal of the right to switch jobs or emigrate without their employer’s permission. The most common industries that forced labor is found are manufacturing, construction, agriculture, domestic work, and the sex industry.
Amazon Routinely Hired Unsafe Delivery Contractors, Report Says
Amazon’s contract delivery drivers are more than twice as likely to receive unsafe driving scores, according to a new report released by the Wall Street Journal. In the report, it was found that contracted trucking companies that worked for Amazon received much lower driving scores than other transportation companies. Over the years, Amazon has been the target of lawsuits claiming that the high goals and expectations set for drivers have lead to unsafe practices. The report also found that Amazon routinely hired and kept on transportation companies, even when their driving records fell below company standards.
Brazilian Airline to Pay USD 41.5M in Bribery Scandal
Gol Airline, Brazil’s largest air travel company, has agreed to pay USD 41.5M in fines for its involvement in a bribery scandal involving national officials. According to the Justice Department and Securities and Exchange Commission, the airline paid nearly USD 4M in bribes to Brazillian officials in order to secure favorable legislation for fuel tax and payroll. The conviction and fine were handed out by the Justice Department for the company’s violation of the Foreign Corrupt Practices Act (FCPA).
DOJ issues further guidance, warnings on ephemeral messaging apps
Federal appeals court upholds 5.6B USD Visa and Mastercard settlement
The DOJ updates its guidance on corporate compliance programs