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The latest news and analysis from Pacifica Global

Insight 8 | FCPA, International Cooperation, Global Settlements and Latin America

 

Summary: The Foreign Corrupt Practices Act of 1977 (“FCPA”) was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.

Thanks to Stanford Law School and Sullivan & Cromwell's Foreign Corrupt Practices Act Clearinghouse, a public database that aggregates and curates source documents and provides analytic tools related to enforcement of the FCPA, we know the following FCPA-related facts:

New Era of International Cooperation and Coordination

International cooperation is not a new phenomenon in FCPA matters, but in recent years, it has grown exponentially. There have been an increasing number of successful multinational efforts to identify, investigate and prosecute corruption schemes. 

There are at least three factors that have contributed to create this new era of international collaboration and cooperation: 1) Stronger institutional commitment for international cooperation; 2) Reciprocal information sharing; and 3) New anti-bribery regulations and enforcement activity by foreign authorities. 

Global Settlements

One of the new trends in the fight against corruption involves multi-jurisdictional, coordinated investigative and joint enforcement efforts between U.S. and foreign agencies.

Since 2016, there are at least seven large global multi-jurisdictional resolutions between enforcement agencies from the U.S., Brazil, Sweden, Netherlands, U.K. and Singapore:

  1. Odebrecht S.A. and Braskem S.A.
  2. Telia Company AB
  3. Rolls-Royce Plc
  4. VimpelCom Ltd
  5. SBM Offshore N.V.
  6. Keppel Offshore & Marine Ltd.
  7. Embraer S.A.

Those cases included total penalties of approximately US$7,56 billion, from which US$1,83 billion correspond to sanctions paid to the U.S.

FCPA Cases in Latin America

Over the past decade, there has been an increased focus on FCPA enforcement in Latin America by the U.S. enforcement agencies.

Since 2008, there have been a total of 73 FCPA cases in Latin America. Two thirds of these cases (48) have taken place in just 4 countries: Mexico (16), Brazil (12), Argentina (11) and Venezuela (9). These cases have included a total of 152 enforcement actions against corporate and individual defendants

In total, these cases have taken place in 15 different Latin American countries. Since 1977, there have been 96 FCPA cases and 196 enforcement actions in Latin America.

You can can find full article at the following link: FCPA, International Cooperation, Global Settlements and Latin America Focus.

Author: Evan M. Epstein
Founder & Managing Partner
Pacifica Global Corporate Governance


Keywords: Foreign Corrupt Practices Act, FCPA, Compliance, Latin America, Anti-Bribery, International Cooperation, Global Settlements, Corporate Governance

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Pacifica Global was founded in San Francisco to serve as the leading international advisory firm focused on corporate governance, anti-corruption, and shareholder rights issues. The mission of Pacifica Global is to help multinational public and private companies solve some of their most complex governance problems including cross-border regulatory and compliance challenges.