The New FCPA Sheriff in Town: You

The government’s enforcement of the Foreign Corrupt Practices Act (FCPA) has been steadily increasing, and all signals point to even more aggressive enforcement. While immigration and terrorism have dominated recent headlines, the government continues to emphasize white-collar enforcement, particularly under the FCPA. In a series of recent public speeches at seminars and conferences, lead prosecutors at the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have unabashedly staked out a program to get more deterrent bang for their enforcement buck: They are advocating an ever broader reading of the FCPA, seeking stiffer corporate fines and penalties, and prosecuting more individuals. They expect companies to self-police, self-report, and cooperate, or face weighty consequences.

Make no mistake. The number of enforcement cases is rapidly rising. In the first 25 years of the FCPA’s existence, only two or three enforcement cases were brought per year. This year, there have been a dozen new cases, with dozens more under investigation. Public disclosures in securities filings reveal that approximately 100 public companies are facing scrutiny under the FCPA.

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