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Skittish Then, Still Skittish Now

skittish

The more things change, the more things stay the same, including the skittishness of the business community surrounding the Foreign Corrupt Practices Act and related laws and its attendant real-world consequences.

This recent “Global Anti-Corruption Survey” (a survey of 330 “respondents around the world to understand companies’ usage of anti-corruption programs and its impact on business decisions as well as due diligence in practice) contains a litany of responses concerning the 50% (or so) of respondents who, because of “concerns about violating anti-corruption regulations”

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Issues To Consider From The LAN Airlines Enforcement Action

Issues

This previous post went in-depth regarding the $22 million parallel DOJ and SEC enforcement action against LAN Airlines.

This post continues the analysis of the enforcement action by highlighting additional issues to consider.

Defiant

As noted in connection with the prior SEC enforcement action against Ignacio Cueto Plaza, the conduct at issue is notable for several reasons.

First, the problematic conduct was engaged in by an individual currently with the company. The vast majority of FCPA enforcement actions involve the conduct of former employees.

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Mid-Year FCPA Report

mid-year report

This post highlights Foreign Corrupt Practices Act enforcement and related developments at the mid-point of 2016.

In doing so, this post contains several FCPA enforcement statistics. When publishing yearly FCPA enforcement statistics, I remind readers that any statistic with an arbitrary cutoff date is of marginal value. This reminder is even more important when interpreting mid-year 2016 FCPA statistics.

Another reminder, once again various FCPA Inc. participants are engaging in haphazard and creative counting methods that distort FCPA statistics. (See here for the article “A Common Language to Remedy Distorted FCPA Enforcement Statistics”).

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A Positive Correlation Between Bureaucracy and Corruption

Overlap

Previous posts (see here, here and here) have posed the question several times.

Why do Foreign Corrupt Practices Act violations occur?

Do companies subject to the FCPA do business in foreign markets: (i) intent on engaging in bribery as a business strategy and without a committment to FCPA compliance; or (ii) with a committment to FCPA compliance, yet subject to difficult business conditions?

To be sure, there have been some instances where bribery was used as a business strategy and approved of and condoned by high-level corporate executives.  However, the more common reason for FCPA scrutiny and enforcement is that company with a commitment to FCPA compliance is doing business in a foreign country subject to difficult business conditions.

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