Three experts from the public and private sectors participated in a panel discussion of cross-border corruption and international compliance efforts on the evening of March 22, 2023, at The Catholic University of America Columbus School of Law (Catholic Law). Sponsored jointly by the Securities Law Program (SLP) and Compliance, Investigations, and Corporate Responsibility Program (CICR), the evening’s event brought Christina McGlosson ’98, Director, Compliance Practice, Capital Markets and Digital Assets, Promontory Financial Group; Charles Cain, Chief, Foreign Corrupt Practices Unit, Division of Enforcement, U.S. Securities & Exchange; and Tara Giunta ’86, Partner, Litigation Department, Paul Hastings LLP, to engage in a panel discussion with students and alumni from Catholic Law.
Jack Murphy and Sarah Duggin, SLP and CICR Directors, respectively, introduced the program and panelists before handing the podium over to moderators Sidney Cherry (3L) and Claire Galasso (3L). Cherry and Galasso initiated the night’s discussion by asking panelists to comment on their experiences dealing with cross-border corruption. Giunta, speaking first, explained the difficulties that unnerve companies attempting to ensure the integrity of their global operations. She highlighted that for many companies, despite the existence of internal control frameworks designed to help them operate ethically, trying to collect information about the businesses with whom they are dealing is a difficult task.
Receiving the microphone from Giunta, Cain noted that corruption is not simply the result of companies’ pursuit of profits but a reality of the political situation in many places. For example, “with failed states, someone in the government is just looking to get rich,” he commented. “Corruption permeates that entire system.” The other panelists agreed.
The moderators then asked the panelists for their thoughts on the main drivers of cross-border corruption, asking them what they thought was the primary motivator behind evading compliance regulations. “Other than greed?” quipped Giunta. “Kleptocracy,” she continued, detailing how a variety of rationales can impel low-level workers abroad to resort to white-collar theft in order to make ends meet. Cain concurred, adding that in failed states kleptocrats take advantage of an absence of the rule of law and will do anything to drain the populace for their own financial ends. The unfortunate conclusion of many companies, McGlosson remarked in response, is that dealing with corrupt officials abroad is sometimes “the cost of doing business.”
Toward the end of the discussion, Cherry and Galasso inquired about how activists in both the private and public sectors might combat cross-border corruption. Cain emphasized the need for global law enforcement networks, arguing that heightened collaboration among countries puts pressure on international corporations and encourages compliance. McGlosson added that NGOS and others active in the private sector could benefit from identifying weaknesses in reporting functions and that reassessing and enhancing reporting and auditing procedures can help businesses ensure that they are operating in compliance with the law and avoiding potential corruption.
The evening concluded with a networking reception hosted by both programs in the Louise H. Keelty and James Keelty, Jr. Atrium.
The Securities Law Program (SLP) seeks to instill in its students familiarity with a variety of substantive topics of current and enduring impact on Securities regulation; an ability to apply regulatory, administrative, and judicial holdings to issues arising within the field; and enhanced legal writing and advocacy skills. The Compliance, Investigations and Corporate Responsibility Program (CICR) offers a unique opportunity for students to gain the skills necessary to work in the compliance and sustainability fields and to enhance the transparency, responsibility, and sustainability of organizations in the United States and around the world.