Trends And Recent Developments In FCPA Enforcement

Over the past year, both the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have continued to aggressively bring cases against companies and individuals for Foreign Corrupt Practices Act (FCPA) violations. 2010 alone saw eight of the 10 largest monetary settlements for FCPA violations in a year, where the combined fines and penalties to the SEC and the DOJ exceeded $1.8 billion.¹ Because the heightened focus and aggressive stance in pursuing FCPA violations show no signs of abating, companies with potential FCPA exposure should understand recent enforcement trends and become familiar with measures they can take to ensure compliance with the FCPA. Recent trends from enforcement actions, which are described below, include: investigations of individuals, industry wide sweeps, an increase in penalties and use of tools such as deferred prosecution agreements by the SEC.