No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe
Jump to a Section
  • At the Office
    • Ethics
    • HR Compliance
    • Leadership & Career
    • Well-Being at Work
  • Compliance & Risk
    • Compliance
    • FCPA
    • Fraud
    • Risk
  • Finserv & Audit
    • Financial Services
    • Internal Audit
  • Governance
    • ESG
    • Getting Governance Right
  • Infosec
    • Cybersecurity
    • Data Privacy
  • Opinion
    • Adam Balfour
    • Jim DeLoach
    • Mary Shirley
    • Yan Tougas
No Result
View All Result
Corporate Compliance Insights
Home Featured

The Convergence Between the FCPA and Suspension and Debarment

Suspension and Debarment in Monitoring, Part 3

by Jay Rosen
July 24, 2019
in Featured
white hard hat on american flag signifying government contractor

Jay Rosen, “Mr. Monitor,” continues a series on suspension and debarment, discussing where these actions meet with FCPA enforcement.

Debarment may be based on actions so serious or compelling that it affects the present responsibility of the contractor or subcontractor. There is some fairly broad language as to what the basis for a suspension and debarment can be. This means that in the context of anti-corruption laws, it can be the basis of a suspension or debarment.

Under the FCPA, the conduct to incur a violation does not require actual bribery or corruption.

It can be bad recordkeeping associated with or the context of engagements with foreign officials – activity that would generally fall outside the realm of a public contract or subcontract. From the suspension and debarment perspective, it is critical to recognize here that the standard definition for contractor issues from the rule does not require that the entity actually have a contract in place.

In the context of suspension and debarment, they may have a contract or compete at some point for a contract to become a contractor – essentially any business activity that provides goods or services the federal government may be interested in acquiring potentially could fall within the definition of “contract.”

When one considers the FCPA, practically any business would fall within the definition of “contractor.”

These sanctions are not limited to contractors with existing contracts, and they are not limited to misconduct occurring in the context of a federal contract. My colleagues at Affiliated Monitors have dealt with several matters involving FCPA violations – activity that was clearly outside the scope of a federal contract or subcontract, but where the conduct was committed by very large federal contractors.

Another angle to the convergence of FCPA and suspension and debarment was raised by two authors, then South Texas College of Law student Nicholas J. Wagoner and Professor Drury D. Stevenson in a piece titled “FCPA Sanctions: Too Big to Debar?”, in which they posited the question:

“Are certain private contractors too big to debar?” Their conclusion: “It appears so.”

The authors stated, “The federal government is too dependent on a particular set of large, private-sector corporations for equipment and services.”

In addition to the virtual immunity from debarment enjoyed by these firms when they violate the FCPA, the fines imposed for engaging in foreign corrupt practices comprise a tiny fraction of the potential revenue generated by lucrative contracts with the U.S. and foreign states. When discounted by the low probability of detection, these sanctions are far too low to deter unlawful activity.

One solution for the issues regarding fines and penalties for FCPA violators is debarment and suspension. They urge that debarment would be a significant deterrent for U.S. government contractors and would “increase compliance with the FCPA.”

The authors also suggest that the threat of debarment as a penalty would increase self-disclosure without any increased enforcement efforts if companies received the “meaningful reward” of a lesser penalty through self-disclosure.

A wide variety of conduct can form the basis of a suspension or debarment. It can be any fraud or criminal offense in the context of obtaining, attempting to attain or forming a public contract or subcontract within the scope of antitrust statutes or violations, whether federal or state embezzlement, theft forgery, ossification or destruction of records, false statements or tax evasion, violating basically any federal law.

The concept of present responsibility is not defined anywhere on the regulatory structure; it is left to the discretion of the agency suspending or debarring and, in most cases, that official is going to look back at it. The basic question asked will be “is there a reason to be concerned about the integrity of that contractor?”

And that gets us into a fairly deep dive of the ethics and compliance program.


In case you missed the earlier installments of this ongoing series, please see the links below.

Everything You Always Wanted to Know About Monitors But Were Afraid to Ask

Part 1, Part 2, Part 3, Part 4 and Part 5

Potential Issues in Corporate Monitorships

Part 1, Part 2, Part 3, Part 4 and Part 5

Suspension and Debarment in Monitoring

Part 1, Part 2


Tags: Anti-BriberyAnti-CorruptionFCPA Enforcement ActionsMonitoring
Previous Post

Assessing the Risks Associated with Cannabis-Based Businesses in the U.S. and Canada

Next Post

Refinitiv Unwraps Beneficial Ownership and Vessel Data to Support Improved Risk Management

Jay Rosen

Jay Rosen

Jay Rosen is Vice President, Business Development and Monitoring Specialist at Affiliated Monitors, Inc., the first company in the U.S. to focus on providing independent integrity monitoring and assessment services across a wide range of regulated industries and professions. Jay previously headed up Merrill Brink’s FCPA Investigations and Ethics and Compliance translation group. He has over eight years of experience assisting clients on cross-border investigations, as well as helping them localize their code of conduct and other mission-critical English documents for their global colleagues. For almost three years, Jay has co-hosted the #1 weekly FCPA podcast, “This Week in FCPA,” with Tom Fox. Tom and Jay recently launched a second podcast, “Popcorn and Compliance,” and Jay is also a commentator on the biweekly podcast, “Everything Compliance,” with Jonathan Armstrong, Tom Fox, Sarah Hadden, Matt Kelly and Mike Volkov.

Related Posts

serious fraud office website

The Carrot and the Stick: UK’s SFO Clarifies Self-Reporting Benefits for Corporate Offenders

by Jonathan Armstrong and Vivien Yanni Gan
May 5, 2025

New director promises faster investigations and clearer outcomes for organizations that proactively disclose bribery offenses

doj exterior sign

‘At Times of Stress, People Make Stupid Decisions’: Why FCPA Interlude Demands Greater Vigilance

by Esther D’Amico
April 22, 2025

Training and communication remain critical as future of anti-corruption enforcement is murky

hands firmly holding rope

Holding the Line on Compliance During the FCPA Enforcement Pause

by Kirk Foster, Michael DeBernardis and David Tannenbaum
April 1, 2025

Why DOJ’s 180-day interlude presents an opportunity to strengthen anti-corruption foundation

doj sign on building

FCPA Enforcement Is Changing; What Does It Mean for Compliance Programs? [Q&A]

by Jennifer L. Gaskin
February 24, 2025

From international enforcement risks to M&A implications, experts warn against weakening anti-corruption controls despite DOJ's temporary hold

Next Post

Refinitiv Unwraps Beneficial Ownership and Vessel Data to Support Improved Risk Management

No Result
View All Result

Privacy Policy | AI Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Research
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2025 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe

© 2025 Corporate Compliance Insights