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Survey Says …

Survey Results

The OECD recently released this study titled “Corporate Anti-corruption Compliance Drivers, Mechanisms and Ideas for Change.” The study largely relies on results of a survey “to better understand the extent to which companies are currently motivated to take measures to prevent and detect bribery and other forms of corruption in their business dealings.”

The survey size was very small (only 130 survey respondents – largely individuals in a legal or compliance role in their companies – with the U.S. having the most respondents – with the largest number of respondents in the healthcare industry). As a result the survey was not representative as even the report recognized: “a company that does not have a compliance program probably would not have an interest in participating in a study of such program – thus it is important to remember that the percentage of respondents who indicated that their companies have such a program is not at all indicative of the percentage of overall companies in the world that have such programs.”

Even as to this survey group, as highlighted below several survey responses caught my eye and call into question whether “soft” enforcement of the FCPA (and related laws) has been successful (see here for the article “Has the FCPA Been Successful in Achieving Its Objectives”) or whether compliance can best be incentivized with a compliance defense (see here for the article “Revisiting an FCPA Compliance Defense”).

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Friday Roundup

Roundup

Monitor costs, scrutiny alert, quotable, and survey says. It’s all here in the Friday roundup.

Monitor Costs

As highlighted in prior posts here and here, in late 2019 Ericsson resolved a Foreign Corrupt Practices Act enforcement action and the $1.06 billion settlement amount was the largest net FCPA settlement amount in history. As a condition of settlement, Ericsson was required to engage an independent compliance monitor for a three-year period.

Recently, Ericsson disclosed “a provision of SEK 0.6 billion [approximately $60 million] was made to cover future monitoring costs.” (See here for the article “FCPA Ripples.”)

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Survey Results Once Again Call Into Question Whether The FCPA Has Been Successful In Achieving Its Objectives?

questions to ask

In enacting the Foreign Corrupt Practices Act, Congressional leaders stated that the FCPA “would end corporate bribery” and that the goal of the FCPA was “the elimination of foreign bribery.”

Granted, politicians have long been known for making optimistic, aspirational statements, but 40+ years later there is more, not less, FCPA enforcement activity, and seemingly more, not less, exposure to corruption in the global marketplace. (For additional reading on this general topic – see here for the article titled “Has the FCPA Been Successful in Achieving Its Objectives” recently published in the Illinois Law Review).

Recent survey results from the 2019 Global Anticorruption Survey by AlixPartners once again seriously call into question whether the FCPA has been successful in achieving its objectives.

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SEC Chair Clayton Says That “In Many Areas Of The World, Our [FCPA] Work May Not Be Having The Desired Effect”

Jay Clayton

These pages have long posed the question of whether the Foreign Corrupt Practices Act has been successful in achieving its objectives. (See here for a recent law review article titled “Has the FCPA Been Successful in Achieving Its Objectives” – see also here for FCPA Flash podcast episodes on the topic).

These pages have also long posed the question of whether country exits in the aftermath of FCPA scrutiny or enforcement are a good thing (as the government often seems to suggest) or rather a bad thing. (See here for numerous posts).

Yesterday, in this speech, SEC Chairman Jay Clayton discussed the same topics and offered candid observations that seemingly conflict with much of the government’s FCPA enforcement rhetoric over the last several years.

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How Others Answered The Question Of Whether The FCPA Has Been Successful In Achieving Its Objectives

Soapbox

This post highlighted a new article titled “Has the FCPA Been Successful in Achieving Its Objectives?”

As highlighted below, the same general question has been posed to several guests on the FCPA Flash Podcast.  Click on the links to see how the individuals answered the very relevant question.

Sandra Moser (Quinn Emanuel and former chief of the DOJ’s Fraud Section)

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