FCPA and Anti-Bribery and Corruption Enforcement Globally
Question: What are the recent anti-corruption enforcement trends globally?
Answer: President Trump recently issued an Executive Order with potential significant implications for enforcement of the Foreign Corrupt Practices Act(FCPA). As we discussed in our previous publication (link), the Order is “pausing” FCPA enforcement in order to “further American economic and national security.” While the long-term implications of the Order remain to be seen, it did shift enforcement priorities away from corporate enforcement and on areas such as immigration, human trafficking, cartels and gangs.
At the same time, other anti-bribery and corruption regimes globally remain intact, meaning there will be little change in attitudes towards anti-corruption for globally operating companies. Even more so, authorities in other jurisdictions have begun to increase their anti-corruption enforcement efforts, as if to fill in the gap left by the US Department of Justice following the Executive Order pausing FCPA enforcement.
For example, the enforcement authorities of the United Kingdom, France and Switzerland have recently announced the International Anti-Corruption Prosecutorial Taskforce[1], recognizing complex and international nature of bribery and corruption threats. The Taskforce intends for the respective authorities from the three countries to work closely and effectively together and develop best practices and share experiences in joint fight against corruption.
There also have been developments in anti-corruption enforcement in other corners of the world. In China, anti-corruption enforcement resulted in significant actions in government-owned companies in the financial and energy sectors, and the government has demonstrated its intent to focus prosecution efforts on those who are paying bribes and on the so-called “commercial bribery” (new amendments to the Criminal law increased penalties for bribe-giving and imposed liability on employees of private companies for offences that were previously only limited to state-owned enterprises). Healthcare is a sector of particular attention for anti-corruption enforcement, with a significant number of health officials and executives of healthcare and pharma companies investigated as part of the campaign to eradicate corruption across the healthcare industry. As part of this effort, the government has issued “Compliance Guidelines for Healthcare Companies to Prevent Commercial Bribery Risks.” Further, legislative bodies in China continue its focus on data protection laws and regulations involving national security issues. These are the areas that may become critical when companies face internal investigations or cooperate with enforcement agencies overseas.
Similarly, there has been an increase in anti-corruption enforcement actions across African countries, as well as actions taken by the African Development Bank and the World Bank.
To conclude, any “pause” in FCPA enforcement is likely to be balanced out by the increased anti-corruption enforcement in places like Europe, China and Africa, more close cross-border cooperation among national enforcement agencies and more rigorous attention to corruption issues by multi-national development banks and international organizations
(i) UK, France and Switzerland announce new anti-corruption alliance (Press Release): https://www.gov.uk/government/news/uk-france-and-switzerland-announce-new-anti-corruption-alliance; International Anti-Corruption Prosecutorial Taskforce Founding Statement: https://assets.publishing.service.gov.uk/media/67dc0bb3931ea30d1b7ee33d/International_Anti-Corruption_Prosecutorial_Taskforce.pdf
*The contents of this message, current at the date of publication, are for reference and general informational purposes only and do not constitute legal advice. You should contact your attorney to obtain advice with respect to any particular legal matter. You should not act or refrain from acting on the basis of information in this publication without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.
Question: What are the recent anti-corruption enforcement trends globally?
Answer: President Trump recently issued an Executive Order with potential significant implications for enforcement of the Foreign Corrupt Practices Act(FCPA). As we discussed in our previous publication (link), the Order is “pausing” FCPA enforcement in order to “further American economic and national security.” While the long-term implications of the Order remain to be seen, it did shift enforcement priorities away from corporate enforcement and on areas such as immigration, human trafficking, cartels and gangs.
At the same time, other anti-bribery and corruption regimes globally remain intact, meaning there will be little change in attitudes towards anti-corruption for globally operating companies. Even more so, authorities in other jurisdictions have begun to increase their anti-corruption enforcement efforts, as if to fill in the gap left by the US Department of Justice following the Executive Order pausing FCPA enforcement.
For example, the enforcement authorities of the United Kingdom, France and Switzerland have recently announced the International Anti-Corruption Prosecutorial Taskforce[1], recognizing complex and international nature of bribery and corruption threats. The Taskforce intends for the respective authorities from the three countries to work closely and effectively together and develop best practices and share experiences in joint fight against corruption.
There also have been developments in anti-corruption enforcement in other corners of the world. In China, anti-corruption enforcement resulted in significant actions in government-owned companies in the financial and energy sectors, and the government has demonstrated its intent to focus prosecution efforts on those who are paying bribes and on the so-called “commercial bribery” (new amendments to the Criminal law increased penalties for bribe-giving and imposed liability on employees of private companies for offences that were previously only limited to state-owned enterprises). Healthcare is a sector of particular attention for anti-corruption enforcement, with a significant number of health officials and executives of healthcare and pharma companies investigated as part of the campaign to eradicate corruption across the healthcare industry. As part of this effort, the government has issued “Compliance Guidelines for Healthcare Companies to Prevent Commercial Bribery Risks.” Further, legislative bodies in China continue its focus on data protection laws and regulations involving national security issues. These are the areas that may become critical when companies face internal investigations or cooperate with enforcement agencies overseas.
Similarly, there has been an increase in anti-corruption enforcement actions across African countries, as well as actions taken by the African Development Bank and the World Bank.
To conclude, any “pause” in FCPA enforcement is likely to be balanced out by the increased anti-corruption enforcement in places like Europe, China and Africa, more close cross-border cooperation among national enforcement agencies and more rigorous attention to corruption issues by multi-national development banks and international organizations
(i) UK, France and Switzerland announce new anti-corruption alliance (Press Release): https://www.gov.uk/government/news/uk-france-and-switzerland-announce-new-anti-corruption-alliance; International Anti-Corruption Prosecutorial Taskforce Founding Statement: https://assets.publishing.service.gov.uk/media/67dc0bb3931ea30d1b7ee33d/International_Anti-Corruption_Prosecutorial_Taskforce.pdf
*The contents of this message, current at the date of publication, are for reference and general informational purposes only and do not constitute legal advice. You should contact your attorney to obtain advice with respect to any particular legal matter. You should not act or refrain from acting on the basis of information in this publication without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.
