ANTI-CORRUPTION ENFORCEMENT TRENDS IN M&A: ARE THE PAST FOUR YEARS A PROLOGUE TO DECREASED ENFORCEMENT?
Measuring by the number of corporate enforcement actions initiated, 2021 continued the ebb tide of Foreign Corrupt Practices Act (FCPA) enforcement in the US. For each of the past four years, the number of FCPA corporate enforcement actions by the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) has decreased, from 16 in 2018 to just four in 2021.
Does the decrease in actions against corporations represent a shift in enforcement priorities for the government, or is it merely a temporary dip, brought on by the difficulties caused by the coronavirus (COVID-19) pandemic? Although it may be too soon to make any predictions, this article will look at the data, the policy pronouncements from the current administration, and offer some practical tips to help ensure that companies are well-positioned to weather whatever may come.
2021 was a record year for mergers around the globe. According to data from PwC, there were more than 62,000 deals announced during 2021 – an increase of 24 percent over 2020, and a record $5.1 trillion in announced value. Despite the number and size of these deals, and the prominent role that the DOJ and SEC expect anti-corruption compliance to play in M&A activity, FCPA enforcement was light.
Apr-Jun 2022 Issue
Thompson Hine