2. High-VelocityEnforcement
3. DOJ / SEC Matters Initiated | 2002 - 2010
4. Total Criminal and Civil Penalties
Imposed on Corporations | 2002 - 2010
5. WhatHas Not Changed?
6. Photo Edgar de Evia
WhatHasChanged?
7. 8. Total Criminal and Civil Penalties
Imposed on Corporations | 2002 - 2010
9. Current Enforcement Picture
Legal Elements of the Offense
UK Bribery Act Effective Date
Designing and Implementinga Compliance Program
Third Party Agents and Due Diligence
Overview
9
9
10. 10
CurrentEnforcementPicture
11. FCPA Global Enforcement Trends
11
Corporate mega fines fueled by voluntary disclosure process.
DOJ has dedicated additional prosecutors to FCPA cases.
FBI has dedicated FCPA squad.
Obama administration is continuing focus on FCPA
prosecutions.
FBI is using aggressive investigative tactics.
DOJ is increasing use of industry-wide investigations.
12. FCPA Enforcement in Latin and Central America
12
US Department of Justice is increasing prosecution of non-US
corporations and individuals in United States Courts.
In 2010, 70 percent of the companies prosecuted for criminal FCPA
violations were foreign companies
Many of the criminal cases involve corruption in Latin and Central
America, particularly Brazil, Mexico, Venezuela, and
Argentina.
US Department of Justice is increasing coordination with Latin and
Central America enforcement agencies
13. Increase in FCPA Enforcement Actions
13
2010 witnessed an 85% increase in FCPA enforcement actions over
2009, which itself was a record year.
60
48
50
40
DOJ
30
26
26
SEC
20
20
18
20
14
13
8
10
7
7
5
3
2
0
2004
2005
2006
2007
2008
2009
2010
14. Blockbuster FCPA Settlements
14
* Eight of the top ten monetary settlements in FCPA history were
reached in 2010.
$900
2010
Siemens
$800
2009
$700
2008
KBR/Halliburton
$600
$500
BAE Systems
ENI/Snamprogetti
$800
$400
Technip
$300
$579
Daimler
$400
$200
Alcatel-Lucent
$365
$338
Panalpina
ABB
$100
$185
Pride International
$137
$82
$58
$52
2010 Total*:
$1617
$0
15. David Kay,American Rice, Inc.
37 months
John Warwick,Ports EngineeringConsultants Corporation
37 months
Robert Antoine,Haiti Telco
48 months
Juan Diaz,Third party consultantto Haiti Telco
57 months
Douglas Murphy,American Rice, Inc.
63 months
Albert Jack Stanley,KBR
84 months
Charles Paul Edward Jumet,Ports EngineeringConsultants
Corporation
87 months
0
10
20
30
40
50
60
70
80
90
100
Most Severe Jail Sentences for FCPA Violations
15
16. Industry-Wide Investigations
16
Oil and Oil-Services Industry Panalpina Investigation Vetco settled
FCPA case in 2007 based on illegal bribes made through
Panalpina.Following settlement, DOJ issued at least 11 letters to
oil and oil services companies, requesting information about their
dealings with Panalpina.On Nov. 4, 2010, DOJ and the SEC announced
settled FCPA enforcement actions against Panalpina plus six of
these oil and oil services firms (most of which were Panalpina
customers) totaling $236.5 million in disgorgement, fines, and
penalties.
17. Industry-Wide Investigations
17
Medical Device and Pharmaceutical Industry
E.g., Biomet, DePuy, Diagnostic Products, Medtronic, Micrus, Smith
& Nephew, Stryker, Syncor, Wright Medical, Zimmer
Holdings
E.g., Eli Lilly, Merck, Astra Zeneca, Bristol-Myers Squibb,
GlaxoSmithKline, SciClone
Military and Law Enforcement Products Industry
E.g., SHOT Show Sting targets, Armor Holdings, DynCorp, Smith &
Wesson, Allied Defense, Blackwater/Xe
Telecommunications Industry
- E.g., Alcatel-Lucent, Haiti Teleco, ITXC, Latin Node, Magyar
Telekom, Siemens entities, UTStarcom, Veraz
SEC recently launched industry-wide investigation against global
financial companies focusing on dealings with sovereign wealth
funds
18. 18
Corruption in Latin America
19. Latin America Economic Trends
19
Countries in Latin America, such as Brazil, Mexico, Colombia, Peru,
Chile and others, are attracting global investment because of
significant economic opportunities
The region is viewed as attractive for foreign investment
At the same time, governments are increasing anti-corruption and
other enforcement programs to reduce corruption and
anti-competitive activities.
20. Corruption Risks in Latin America
20
CORRUPTION PERCEPTIONS INDEX 2009
21. Global Perception of Latin America Corruption
21
Transparency International has reported that 22 of the 32 countries
in Latin America are perceived to suffer from high levels of
corruption
This problem of corruption goes hand in hand with the high level of
inequity that has not been overcome by the economic growth
experienced by the region in the last few years.
Weak government institutions, low levels of governance and the
influence of particular interests negatively affect efforts to
promote equitable and sustainable human development.
22. International Efforts to Reduce Corruption
22
Nearly all Organization of American States (OAS) member states have
signed and ratified two key legal instruments that provide a
foundation for preventing corruption: the Inter-American Convention
against Corruption and the UN Convention against Corruption.
Most signatory countries have joined the follow-up mechanism of the
Inter-American Convention, a fundamental step for the treaty to
become truly effective.
Member states have generally been slow to implement meaningful
reforms and enforcement program
23. Level of Anti-Corruption Enforcement
23
- Improvement of Anti-Corruption Laws Applicable to
Companies
24. International pressure to reform laws to comply with
international treaty obligations 25. Slowly, countries have been
increasing enforcement efforts with new tools provided by new laws
26. Dissemination of Compliance Culture among Companies 27. The
Level of Enforcement is Likely to Increase, but at a Slow Pace
