In January 2016, we published our bi-annual Recent Trends and Patterns in FCPA Enforcement report, part of our FCPA Digest, which together provide an insightful analysis of recent enforcement trends and patterns in the US, the UK and elsewhere, as well as helpful guidance on emerging best practices in FCPA and global anti-corruption compliance programs.
Following a busy 2014, the US Department of Justice ("DOJ") and the SEC took a step back in 2015 to refocus and reprioritize their efforts. While the SEC pursued ten low-value corporate enforcement actions, the DOJ took a back seat with only two—indicating a greater interest in pursuing individual enforcement actions and apparently conserving its resources to focus on a set of large ongoing investigations.
Among the highlights from 2015 were:
- 12 corporate enforcement actions with total sanctions of $143.1 million reflect a slowdown in enforcement activity by the DOJ and SEC;
- The 12 corporate enforcement actions have resulted in total average corporate penalties of $11.9 million—significantly lower than previous years;
- The DOJ's trial difficulties in the prosecution of former PetroTiger CEO Joseph Sigelman and the failed extradition of Dmytro Firtash reflect the government's ongoing obstacles to successfully prosecuting individuals;
- The DOJ's decision to publicly decline to prosecute PetroTiger for FCPA violations, while noteworthy, may be of limited significance for large companies;
- The SEC breaks new ground in its enforcement action against The Bank of New York Mellon, concluding that the provision of prestigious internships to the family members of foreign officials is sufficient to trigger FCPA liability;
- The announcement of the Yates Memo, although neither a substantive change to DOJ policy nor to the historical expectations of the DOJ Fraud Section and the SEC Division of Enforcement, nevertheless puts increasing pressure on prosecutors to demand information on culpable individuals and then to either bring a prosecution or justify not doing so;
- The UK Serious Fraud Office entered into its first ever deferred prosecution agreement with Standard Bank Plc over the bank's violations of section 7 of the UK Bribery Act;
- Personnel changes at the DOJ raise an interesting new dynamic, but the FCPA will continue to be a priority.
Our January 2016 report is available at: http://www.shearman.com/en/newsinsights/publications/2016/01/fcpa-digest-2016
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