FCPA

As U.S. Enforcement Lags, International Attention to Domestic Corruption Takes a Front Seat Despite assurances from senior DOJ officials that the U.S. would maintain robust enforcement of the FCPA, enforcement has waned in the first eight months of the Trump presidency, with the DOJ and SEC combined announcing only four enforcement actions since the President took office. with co-authors Maggie Grace...

Sharie Brown, chair of FCPA and Corporate Compliance at DLA Piper, provides a list of "red flags" companies can instruct their employees to watch out for to manage compliance risk of overseas operations. Red flags are included for the areas of anti-bribery, export controls, anti-money laundering, anti-terrorism, and anti-boycott risks.

While the resolution of the Telia Company (Telia) Foreign Corrupt Practices Act (FCPA) matter has long been awaited, the results announced in September by the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) were stunning nonetheless. It is one of the largest FCPA resolutions of all-time, with a total fine and penalty of $965MM, which include $457MM in...

In late July 2017, there was an announcement by the Securities and Exchange Commission (SEC) of the resolution of its outstanding Foreign Corrupt Practices Act (FCPA) enforcement action with Halliburton.  In a Cease and Desist Order which also covered former employee Jeannot Lorenz, the SEC spelled out a bribery scheme facilitated by both a failure and over-ride of company internal...

Defining a Risk-Based, Scalable & Sustainable Approach As companies continue to globalize their business opportunities, they are exposed to an ever-widening environment of anti-bribery and anti-corruption regulations. Moreover, the enforcement of such laws is increasing; for example, 2016 was a record year in terms of the number of Foreign Corrupt Practices Act (FCPA) actions brought by U.S. regulators and the...

Companies engaged in cross-border commerce are uncertain about how the use of Bitcoin and other cryptocurrencies may heighten the risk of noncompliance with the Foreign Corrupt Practices Act (FCPA) and other anti-fraud and corruption regulations. Consider what risks may arise and what controls might be needed to keep an aspiring but misguided employee from successfully executing a payoff without being...

Organizations doing business in Mexico well do well to remain up to speed on the country’s National Anti-Corruption System (the SNA). Mexico remains one of the highest-risk jurisdictions in the Americas, an ignoble distinction it’s held for several years. The SNA is, therefore, a welcome development to organizations unwilling to participate in the corruption so prevalent in the region.

An FCPA Year in Review The DOJ and SEC brought a record number of FCPA enforcement actions in 2016, and the Asia-Pacific region played a significant role in that milestone.  Companies doing business in this region amassed nearly one-third of all FCPA enforcement actions. Wendy Wysong details 10 of the most significant ones here. By: Wendy Wysong and Montse Ferrer...

A nation long known for its hard stance against corruption, Chile has been rocked by recent political scandals – a national embarrassment and the primary reason the public’s confidence in the government has taken a nosedive. Early in 2015, President Michelle Bachelet established a council to fight corruption, and the impact is already being seen.

Latin America is experiencing a historic anti-corruption wave as governments in the region bolster their local anti-corruption laws, prosecutors courageously pursue high-profile cases, and corrupt political and business leaders and unscrupulous companies find themselves on the defensive. The trend is seen in Brazil's monumental "Operation Car Wash" involving the region s largest company, Guatemala's jailing of its former President for...

It’s easy to see issues in retrospect, but in many cases involving FCPA enforcement actions, there are plenty of red flags along the way. Take, for instance, the recent action against Key Energy in Mexico: the company overlooked a number of risk indicia; $5 million in profit disgorgements later, and those compliance missteps without a doubt don’t appear quite so...

Many companies these days are implementing automated due diligence systems, and it’s no wonder why: the government’s expectations in terms of third-party risk management are on the rise. Unresolved red flags will be a problem, as will questionable data. The best way to avoid a DOJ or SEC enforcement action: a robust due diligence program.