Last year enforcement statistics gathered by the law firm Gibson Dunn show that the number enforcement actions initiated by US regulators relating to the Foreign Corrupt Practices Act ("FCPA") reached their second-highest level in 74 years. However, with a total of 48 enforcement actions the number is well below the all-time high of 74 enforcement actions initiated in 2010. In 2011 the Department of Justice ("DOJ") initiated 23 enforcement actions (2010: 48) against 25 by the Securities and Exchange Commission ("SEC") (2010: 26).
The 2011 figures prove that the SEC and the DOJ are still strictly enforcing compliance with the FCPA anti-bribery provisions by individuals and companies with a US nexus. In addition, violation of the books-and-records and internal control provisions of the FCPA by companies can lead to prosecution. Most of the enforcement actions initiated by the SEC in 2011 resulted in a settlement (15), against 10 cases being contested in court.
The FCPA's anti-bribery provisions make it illegal to offer or provide anything of value to officials of foreign governments or foreign political parties with the intent to obtain or retain business. Enforcement actions can be initiated against both individuals and companies with a US nexus. Earlier this year the DOJ announced that it would also be in a position to pursue individuals long after a case has been settled against the relevant company.
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