FCPA SETTLEMENTS
R&C: Could you provide an overview of recent Foreign Corrupt Practices Act (FCPA) enforcement activity? What key trends have emerged in a volatile, uncertain trading environment?
Peterson: The Department of Justice (DOJ) and Securities and Exchange Commission (SEC) continue to prioritise Foreign Corrupt Practices Act (FCPA) matters despite the undercurrent of overall disruption caused by coronavirus (COVID-19). COVID-19 has made a huge impact on US businesses, and this obviously has affected the government’s investigative approach and the way companies were addressing an FCPA government inquiry. Initially, US enforcement agencies made some concessions as businesses adjusted their approaches to interviewing international employees, capturing data and reviewing supporting documentation. For matters nearing the final stages of government discussions, the initial COVID-19 period delayed some resolutions. However, more recently, agencies and companies have been moving these negotiations along through virtual discussions, as government and company officials have been more accessible after working through the immediate crisis of the pandemic. In July 2020, the DOJ and SEC published the second edition of their ‘Resource Guide to the U.S. Foreign Corrupt Practices Act’. This is the first update since they released the guide in November 2012, and it shows their continued focus on the FCPA. The enforcement actions and settlements in 2020 have raised eyebrows as the fines and penalties levied on companies reached new heights. Overall, the DOJ and SEC have pressed forward with combatting overseas corruption regardless of the pandemic. Companies must remain vigilant in their practices to abide by the FCPA provisions.
Jan-Mar 2021 Issue
BDO
Morgan, Lewis & Bockius LLP