Survey Says ….
Recently, White & Case and KPMG released the results of a “2023 Global Compliance Risk Benchmarking Survey” based on “opinions of 201 senior decision-makers from more than 30 countries.”
It is interesting to view several survey responses through the lens of what the DOJ and SEC want companies to do.
For instance, a meaningful percentage of organizations: have never conducted a risk assessment; do not have a written policy regarding engagement with and interaction with third parties; do not require third parties to complete anti-corruption training; do not conduct due diligence of third parties; or do not conduct audits on third parties to assess compliance with anti-corruption requirements.
None of these tasks of course are specifically required by the Foreign Corrupt Practices Act (or other related laws). However, failure to do these tasks have all been alleged in various FCPA enforcement actions most often as an alleged internal control deficiency.
Gartner Resolves $2.5 Million Enforcement Action
Late last Friday afternoon on a holiday weekend, the SEC released one of the more pedestrian FCPA enforcement actions of recent memory.
The action involved Gartner Inc. (a technological research and consulting company) concerning conduct in 2014 and 2015 in South Africa.
To resolve the matter, Gartner agreed to pay approximately $2.5 million (856,764 in disgorgement and prejudgment interest and a $1.6 million civil penalty).
In summary fashion, this administrative order states:
Philips Joins The Corporate FCPA Repeat Offender Club
The Foreign Corrupt Practices Act corporate repeat offender club is getting so large, that it really is not all that exclusive.
In 2013, Koninklijke Philips Electronics N.V. (“Philips”), a Netherlands-based company with shares listed on the New York Stock Exchange, resolved a $4.5 million FCPA enforcement action concerning conduct in Poland. (See here for the prior post).
In resolving the matter, Philips consented to entry of the Order prohibiting future FCPA violations.
Yesterday, the SEC announced that Philips agreed to pay “more than $62 million to resolve charges that it violated the FCPA” with respect to conduct related to its sales of medical diagnostic equipment in China.”
Issues To Consider From The Frank’s Enforcement Action
This recent post highlighted the approximate $8 million FCPA enforcement action against Frank’s International based on conduct in Angola.
This post highlights additional issues to consider.
Timeline
As highlighted in this prior post, in June 2016 Frank’s International disclosed:
Frank’s International Resolves $8 Million FCPA Enforcement Action
The SEC has announced that Frank’s International N.V., (a Dutch oilfield services provider) now known as Expro Group Holdings N.V., has resolved an approximate $8 million Foreign Corrupt Practices Act enforcement action.
The conduct at issue based focuses on Angola and occurred between 2008 and 2014 (in other words approximately 10-15 years ago).
This administrative order finds in summary fashion: