Using Actionable Intelligence to Manage FCPA Compliance

Enforcement of the Foreign Corrupt Practices Act (FCPA) continues to be a high priority area for the U.S. Securities and Exchange Commission (SEC). Whereas 10 years ago, prosecutions related to FCPA compliance were rare, in 2010, $1.8 billion in penalties were imposed by the DOJ and SEC for violations of the FCPA. Despite clear codes of conduct, written policies, and seemingly tight controls, even the world’s most admired and well-managed firms grapple with FCPA policy compliance. FCPA violations don’t always involve headline-worthy scandals – pervasive forms of fraud and corruption can be subtle, including pressures for payments on routine transactions. While the U.S. continues to enforce compliance and the United Kingdom enforces its own UK Bribery Act, countries like Turkey, Brazil and China have begun pursuing corporate wrongdoing as well. Hence, companies have become increasingly liable not just for the conduct of their own employees, but also for the actions of their intermediaries, including consultants, agents, and joint-venture partners.