Violations Of The “Foreign Corrupt Practices Act”: Know Your Exposure

Attorneys who serve individuals or companies with international operations should be aware of the recent focus by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) on violations of the Foreign Corrupt Practices Act (FCPA). Authors Jennifer Johnston and Jeffrey Garfield discuss how to assess whether FCPA exposure exists and offer practical advice to mitigate the risk of loss.

The number of FCPA-related enforcement actions by the U.S. DOJ and the SEC jumped from two in 2003 to 38 in 2007.¹ The past three years have seen the most enforcement actions in the history of the 31-year-old statute, with fines and penalties in excess of $100 million.² All indicators from the DOJ, the SEC, and the newly formed FCPA unit of the Federal Bureau of Investigation point toward a continued emphasis on FCPA compliance.