The number of Foreign Corrupt Practices Act enforcement actions by the U.S. Justice Department and Securities and Exchange Commission in the first half of 2012 stayed flat compared to levels in the first half of 2011, according to a report by the law firm Venable.
Venable’s FCPA and Anti-Corruption Practice Group noted in a report released Monday there were 13 such actions in the first half, on par with the same period in 2011, but significantly down from the first half of 2010, despite corruption cases making headlines.
“Several trends from 2011 seem to be continuing through the first half of 2012, including the discounting of financial penalties by both the DOJ and the SEC for companies that made swift, voluntary disclosures and continued to cooperate with the government,” Venable said in the report
Meanwhile, the law firm noted efforts to reform the FCPA continue to “gather steam.”
“In February, the U.S. Chamber of Commerce and several members of Congress issued letters demanding ‘clear and concrete’ guidance from DOJ on its enforcement positions, including the definition of ‘foreign official,’ requirements for adequate compliance programs, and the methodology for calculating fines and disgorgement, among other things," Venable said.
“At the same time, other members of Congress continued to seek automatic debarment of government contractors convicted of FCPA violations and to make it easier for companies and individuals to bring private causes of action for FCPA violations. The implementation of Dodd-Frank
, which monetarily rewards whistleblowers who provide information resulting in a successful SEC enforcement action, has also started to change the enforcement landscape."
Venable also cited increased development of anti-bribery legislation outside the United States.
“In the first half of 2012, countries other than the United States continued to be active in policing global corruption,” the report said. “July 2012 marks the one-year anniversary of the U.K. Bribery Act’s taking effect. China, India, Canada, Russia, and Greece revamped their anti-corruption efforts in 2011 and early 2012. This added another layer of complexity to anti-corruption compliance for multinational corporations.”
In mid-July, American Shipper
hosted a webinar
with Pete Mento, director of global customs and trade policy for C.H. Robinson Worldwide, where he discussed the potential impacts of the FCPA.