A Modicum of Clarity: DOJ and SEC Shed Some Light on the Foreign Corrupt Practices Act

more+
less-

On November 14, 2012, the Department of Justice and the Securities and Exchange Commission issued A Resource Guide to the U.S. Foreign Corrupt Practices Act. Although this resource breaks no new ground, it offers useful guidance to help lawyers and clients alike understand the government’s interpretation of the FCPA.

Background -

Congress enacted the Foreign Corrupt Practices Act (the “FCPA” or “Act”) in 1977, but it remained an infrequently enforced statute until the last decade. Enforcement efforts by the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) have increased dramatically in recent years, leading to fines of hundreds of millions of dollars in some cases. These eye catching penalties have prompted multinationals to adopt compliance programs and extensively investigate allegations of corrupt practices, particularly bribery of officials of foreign governments or public international organizations, either directly by company employees or indirectly through third-party agents.

Despite the surge in FCPA investigations and enforcement, few of these high risk cases actually have been litigated, resulting in a scarcity of legal authority demarcating the reach of this vague, bluntly written statute. In addition, FCPA practitioners and regulated entities have perceived an inconsistency in the manner in which the government approaches possible violations of the Act, leading to uncertainty and heightened investigative and legal costs. In response, commentators and members of the regulated community have called for Congress to amend the law.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DOJ
SEC

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Patterson Belknap Webb & Tyler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×