The second quarter of 2018 saw the resolution of four matters — three of which were joint Department of Justice (DOJ)/Securities and Exchange Commission (SEC) resolutions, and one matter resolved just by the SEC. While the conduct in these cases was not unique insofar as Foreign Corrupt Practices Act (FCPA) matters are concerned, it’s interesting to note that two of these cases involved financial institutions, one of which involved the first coordinated foreign bribery case with French authorities. If you add in the early Q3 settlement with Credit Suisse related to China hiring practices, that makes three financial institution bribery-related settlements in a one-month period.
There were several speeches by DOJ and SEC officials, including speeches related to rewarding companies that implement effective compliance programs that instill a culture of compliance, and provide full cooperation with authorities. There was also the announcement of a new no-piling-on policy. A running theme in the speeches was having a culture of compliance and the need to keep compliance programs in good working order. If a potential FCPA issue arises, companies that effectively assess risks and have well-thought-out compliance programs will ultimately be better positioned if they find themselves being scrutinized by the authorities.
To learn more about the specific enforcement activity from Q2 2018, download the full report or reach out to our FCPA experts.
Special thanks to Andrew Lind, who contributed to this report.