The Percentage Of Corporate DOJ And SEC FCPA Enforcement Actions That Result From A Voluntary Disclosure

For at least 15 years the government has encouraged business organizations to voluntary disclosure conduct that violates the Foreign Corrupt Practices Act.

In more recent years, in 2012 the government sought in the FCPA Guidance to entice business organizations to voluntarily disclose by, among other things, highlighting six “anonymized examples of matters DOJ and SEC have declined to pursue” where a common thread was voluntary disclosure. In April 2016, it was the DOJ’s pilot program, an effort – in the words of the DOJ –  to “encourage voluntary corporate self-disclosure.” Thereafter, it was the November 2017 DOJ FCPA Corporate Enforcement policy which – in the words of the DOJ – was intended to provide “guidance and greater certainty for companies struggling with the question of whether to make voluntary disclosures of wrongdoing…”

But what do the numbers show? What percentage of DOJ and SEC enforcement actions are the result of a voluntary disclosure? The below post provides the answers.

DOJ

Thus far in 2020 there have been 3 corporate DOJ FCPA enforcement actions and 0 (0%) were the result of a voluntary disclosure. Set forth below are numbers from previous years.

• 3 of the 8 corporate DOJ enforcement actions from 2019 (37%) were the result of a voluntary disclosure;
• 2 of the 8 corporate DOJ enforcement actions from 2018 (25%) were the result of a voluntary disclosure;
• 3 of the 9 corporate DOJ enforcement actions from 2017 (33%) were the result of a voluntary disclosure;
• 5 of  the 13 corporate DOJ enforcement actions from 2016 (38%) were the result of a voluntary disclosure;
• 1 of the 2 corporate DOJ enforcement actions from 2015 (50%) were the result of a voluntary disclosure;
• 2 of the 7 corporate DOJ enforcement actions from 2014 (29%) were the result of a voluntary disclosure;
• 4 of the 7 corporate DOJ enforcement actions from 2013 (57%) were the result of a voluntary disclosure;
• 5 of the 9 corporate DOJ enforcement actions from 2012 (56%) were the result of a voluntary disclosure; and
• 8 of the 11 corporate DOJ enforcement actions from 2011 (73%) were the result of a voluntary disclosure;

Since 2011, there have been 77 corporate DOJ FCPA enforcement actions and 33 (43%) were the result of a voluntary disclosure.

SEC

Thus far in 2020 there have been 6 corporate SEC FCPA enforcement actions and 3 (50%) were the result of a voluntary disclosure. Set forth below are numbers for previous years.

• 6 of the 13 corporate SEC FCPA enforcement actions from 2019, (46%) were the result of a voluntary disclosure.
• 6 of the 14 corporate SEC FCPA enforcement actions from 2018, (43%) were the result of a voluntary disclosure;
• 1 of the 7 corporate SEC FCPA enforcement actions from 2017, (14%) was the result of a voluntary disclosure;
• 8 of the 24 corporate SEC FCPA enforcement actions from 2016, (33%) were the result of a voluntary disclosure;
• 3 of the 9 corporate SEC FCPA enforcement actions from 2015, (33%) were the result of a voluntary disclosure;
• 4 of the 7 corporate SEC FCPA enforcement actions from 2014, (57%) were the result of a voluntary disclosure;
• 3 of the 8 corporate SEC FCPA enforcement actions in 2013, (38%) were the result of a voluntary disclosure;
• 4 of the 8 corporate SEC FCPA enforcement actions in 2012 (50%) were the result of a voluntary disclosure; and
• 11 of the 13 corporate SEC FCPA enforcement actions in 2011 (85%) were the result of a voluntary disclosure.

Since 2011, there have been 103 corporate SEC FCPA enforcement actions and 45 (44%) were the result of a voluntary disclosure.