Proper Planning And Swift Action Can Help Employers Avoid Foreign Corrupt Practices Act Prosecution

While the Department of Justice (DOJ) has initiated at least two new Foreign Corrupt Practices Act (FCPA) enforcement actions against U.S. companies, it has also announced several decisions not to prosecute—most recently involving a U.S. biotech firm and its subsidiaries. The November 16, 2023, declination letter is instructive for companies concerned about protecting themselves against the consequences of employees who take it upon themselves to flout internal anti-bribery policies.

In the biotech matter, the DOJ found evidence that employees of a former subsidiary of the company bribed Mexican government officials before and after the company's acquisition of the subsidiary in 2018. The company's post-acquisition due diligence revealed a $14,000 bribe to secure a wastewater discharge permit. Following an internal investigation and voluntary disclosure, the company ultimately was required to disgorge $406,505 (equivalent to the costs it avoided by way of