SEC FCPA Enforcement – 2024 Year In Review
Foreign Corrupt Practices Act enforcement, it’s not just about the DOJ.
Granted, as a civil enforcement agency the SEC’s sticks are less sharp than the DOJ’s, but the SEC also claims a significant piece of the FCPA enforcement pie (query whether it should – but that is a subject for another day – for instance as discussed in “The Story of the Foreign Corrupt Practices Act” the SEC wanted no part in enforcing the FCPA’s anti-bribery provisions and in recent years an SEC Commissioner stated that anti-corruption policy is not within the SEC’s area of expertise nor further to the SEC’s mission – see here).
This post goes in-depth into various facts and figures relevant to SEC FCPA enforcement in 2024.
The “Foreign Officials” Of 2024
A “foreign official.”
Without one, there can be no FCPA anti-bribery violation (civil or criminal). Who were the alleged “foreign officials” of 2024?
This post highlights the alleged “foreign officials” from 2024 corporate DOJ and SEC FCPA enforcement actions.
As is apparent from the descriptions below, in certain instances the enforcement agencies describe the “foreign official” with reasonable specificity. In other instances there is less specificity as to the alleged “foreign officials.”
Like Prior Years, The Gray Cloud Of FCPA Scrutiny Lasted Too Long In 2024
This recent post highlighted the origins of corporate Foreign Corrupt Practices Act enforcement actions in 2024.
Continuing with the 2024 FCPA statistical feast, this post follows the chronology of scrutiny to enforcement and highlights one of the most troubling policy issues when it comes to FCPA enforcement.
That is – FCPA scrutiny simply lasts too long. Specifically, as highlighted below, 4.5 years was the approximate median length of time companies that resolved FCPA enforcement actions in 2024 were under scrutiny.
Before highlighting the statistics, some general background.
The Origins Of 2024 Corporate Enforcement Actions
This recent post compared corporate FCPA enforcement actions in 2024 to prior years.
However, before a Foreign Corrupt Practices Act enforcement action is announced, scrutiny must first arise.
This post highlights the origins of the eleven corporate enforcement actions in 2024. (See here for a similar post highlighting the origins of 2023 corporate enforcement actions; here for 2022; here for 2021; here for 2020; here for 2019, here for 2018, here for 2017, and here for 2016).
In summary, of the eleven corporate enforcement actions from 2024, four enforcement actions (36%) originated with a voluntary disclosure (albeit in two instances the DOJ found the disclosures to be imperfect).
Corporate FCPA Enforcement In 2024 Compared To Prior Years
This post, the first in a weeks-long year in review statistical feast on FCPA Professor, compares corporate FCPA enforcement in 2024 to prior years.
There is mounds of misinformation in the public domain regarding a supposed slow down in FCPA enforcement – I addressed the issue in this May 2024 podcast – and the misinformation continues . For instance, this recent post by an FCPA “commentator” stated that “2024 was a year of fizzles, fits and starts, and ultimately a slow year of [DOJ] FCPA enforcement.”
The reason(s) for these false narratives (incompetence, an agenda, etc) is unknown.
As demonstrated in the below chart, corporate FCPA enforcement in 2024 (measured by the number of core actions) was the same or exceeded corporate FCPA enforcement in the following years: 2022, 2021, 2015, 2014, 2013, 2009, and 2008.
Corporate FCPA enforcement in 2024 (measured by net settlement amounts) exceeded corporate FCPA enforcement in the following years (2023, 2022, 2021, 2018, 2017, 2015, 2013, 2012, 2011, 2009, 2009, and 2007) and was the 6th highest in FCPA history.