Foreign Corrupt Practices Act 2016 Year-End Update

Alerts / January 25, 2017

2016 was a record-setting year for Foreign Corrupt Practices Act (“FCPA”) enforcement, as both the U.S. Department of Justice (“DOJ”) and the U.S. Securities and Exchange Commission (“SEC”) recovered well over $2 billion in penalties in over 50 combined actions. The SEC and DOJ also made new policy pronouncements about corporate cooperation and individual accountability, and the SEC entered into its first ever Deferred Prosecution Agreement (“DPA”) with an individual. Corporate monitors were imposed in a number of cases where companies did not voluntarily self report or timely remediate, a link noted this year by the SEC FCPA Unit Chief, Kara Brockmeyer.[1] While the focus of a new administration in 2017 will be closely followed, it is expected that aggressive enforcement of FCPA violations will continue unabated.

Our annual update tracks major developments in FCPA enforcement trends, as well as enforcement actions, settlements, prosecutions and declinations. With over 900 lawyers and a seasoned core FCPA practice team that has handled cases on every continent, we understand the unique challenges facing companies operating in high risk environments. Accordingly, we are pleased to offer this update to help educate your company on the latest FCPA developments. We look forward to answering any questions or concerns you have about these significant developments in FCPA enforcement, compliance and defense.

Foreign Corrupt Practices Act 2016 Year-End Update

This update was prepared by John J. Carney, Jonathan R. Barr, Margaret E. Hirce, Susrut A. Carpenter, Kendall E. Wangsgard, Lauren P. Berglin and Bari R. Nadworny.

Many of BakerHostetler’s partners have served in key government or regulatory positions and their experience adds to the depth and quality of our advice. We regularly advise on a broad range of matters, including antitrust and competition, anti-money laundering and export controls, government contracts, securities regulation and tax. Our interdisciplinary Financial Investigations, Restatement and Accounting team combines the resources of seasoned financial litigators, the SEC defense counsel and corporate disclosure and governance professionals to help companies navigate accounting-related special investigations, government inquiries and, when necessary, financial restatements.

[1] See FCPA Chief Touts Record High Enforcement Actions – Links Avoiding a Monitor to Early Remediation of FCPA Issues, BakerHostetler Alert (Oct. 17, 2016).