Specifically, of the 14 corporate Foreign Corrupt Practices Act enforcement actions in 2019, 8 (57%) were against foreign companies (based in many instances on mere listing of securities on U.S. markets or in a few instances on sparse allegations of a U.S. nexus in furtherance of a bribery scheme). Even more dramatic, of the net approximate $2.65 billion in FCPA settlement amounts from 2019 corporate enforcement actions, approximately $2.2 billion (83%) was from enforcement actions against foreign companies.
Scrutiny alerts and updates, reminder, OECD Article 5, ripple, and for the reading stack.
It’s all here in the Friday roundup.
Scrutiny Alerts and Updates
The company has been under scrutiny since 2013 and recently disclosed in its annual report:
Recently, the OECD released this report titled “Resolving Foreign Bribery Cases with Non-Trial Resolutions.” As stated in the report “non-trial resolutions refer to a wide range of mechanisms used to resolve criminal matters without a full court proceeding, based on an agreement between an individual or a company and a prosecuting or another authority.” This term is obviously broad and covers a range of alternatives and there is little in common with a plea agreement compared to a non-prosecution agreement.
The 200+ page report and its six chapters contain mounds of comparative information and data that will likely be of interest to anyone interested in how foreign bribery enforcement actions are resolved.
Yet despite this data dump, the report punts on several pressing questions associated with alternative resolution vehicles. This is hardly surprising given that “the country mentors who provided guidance and contributed to the drafting” of the report were largely government officials including DOJ, SEC and U.K. SFO personnel.
Banking bar, Kokesh related, OECD shaming, quotable, downfall, and listening in. It’s all here in the FCPA roundup.
The Federal Reserve recently announced “that it is prohibiting Tim Leissner and Ng Chong Hwa, also known as Roger Ng, from the banking industry for their participation in a scheme to illegally divert billions of dollars from a Malaysian sovereign wealth fund. Leissner was also fined $1.42 million and consented to the permanent ban.”
About time, scrutiny updates, ripple, for the record, just saying, and for the reading and listening stack. It’s all here in the Friday roundup.
After dinging companies for nearly 40 years for internal controls and risk management failures, the SEC names its first chief risk officer.
As highlighted in this prior post, if the SEC were an issuer there would be many books and records and internal controls issues within the organization.