Summary:

After a particularly slow second quarter, FCPA enforcement activity picked up between July and September of 2024, with the DOJ initiating one new FCPA-related Enforcement Action, unsealing two previously filed actions, and issuing one declination letter pursuant to the agency’s Corporate Enforcement Policy. The SEC instituted and simultaneously settled one administrative action.

U.S. authorities are currently investigating at least 33 different entity groups for possible FCPA violations. Last quarter, no companies disclosed a new FCPA-related Investigation. According to information disclosed in SEC filings and charging and settlement documents, neither the DOJ nor the SEC concluded a publicly-disclosed investigation in the third quarter of 2024.

In the third quarter, the DOJ began a new pilot program to reward whistleblowers and updated its Evaluation of Corporate Compliance Programs Guidance. Additionally, Congress updated the Foreign Extortion Prevention Act with a series of technical corrections to more closely align the law with the FCPA.

Summary:

Enforcement activity in the first six months of the year was the lowest recorded in almost two decades, with neither the SEC nor the DOJ filing a new enforcement action in the second quarter of 2024, which is relatively rare. The last time a quarter passed without a single new enforcement action was in 2013, and before that, in 2003.

Similarly, last quarter, no companies disclosed a new FCPA-related investigation, but U.S. authorities are currently investigating at least 32 different entity groups for possible FCPA violations.

In the second quarter, the DOJ initiated a new pilot program to encourage self-disclosure by individuals involved in certain types of criminal conduct, including violations of the FCPA.

Summary:

FCPA enforcement activity got off to a slow start in the first quarter of 2024, much as it has in each of the last four years, with the DOJ initiating four new FCPA-related Enforcement Actions and announcing two actions initially filed in previous years. The SEC initiated and simultaneously settled one administrative action.

U.S. authorities are currently investigating at least 31 different entity groups for possible FCPA violations. One company disclosed a new government Investigation in Q1.

Deputy Attorney General Lisa Monaco announced that the DOJ would be developing a new pilot program to provide rewards for whistleblowers as a complement to the existing whistleblower program overseen by the SEC. The pilot program is expected to be developed within 90 days of the announcement.

Summary:

The DOJ and SEC filed 21 FCPA-related Enforcement Actions in 2023. Last year’s enforcement activity remained well below the ten-year average of 36 and marked the second lowest year of enforcement activity in a decade.

Despite the slight increase in corporate enforcement activity in 2023, aggregate sanctions imposed on entity groups for FCPA-related violations declined by almost 70 percent during the same time period. Last year, U.S. regulators imposed just under $571 million in sanctions against entity groups in FCPA-related enforcement actions, compared to over $1.5 billion in 2022.

As of the close of 2023, at least 33 companies appear to be the subject of ongoing FCPA-related investigations by U.S. authorities. Seven companies disclosed in their SEC filings in 2023 a new FCPA-related Investigation commenced by U.S. authorities. This marks the first increase in the number of disclosed investigations after two years of declines.

Summary:

FCPA enforcement activity in the third quarter of 2023 continued the slow and steady pace set over the last few years, with the DOJ initiating three new FCPA-related Enforcement Actions, adding a new defendant to an existing action, adding an FCPA charge to an existing indictment, and entering into a non-prosecution agreement in lieu of filing an enforcement action. The SEC instituted and simultaneously settled four administrative actions against five corporate defendants.

U.S. authorities are currently investigating at least 35 different entity groups for possible FCPA violations. One company disclosed a new government Investigation in Q3.

The DOJ announced its first Opinion Procedure Release for 2023 on August 14 in response to a request from a U.S.-based child welfare agency.

Summary:

Enforcement activity in the second quarter of 2023 is the lowest in a decade, with the SEC initiating three FCPA-related Enforcement Actions and the DOJ initiating no new actions. The DOJ and SEC filed a total of eight enforcement actions in the first half of this year, compared to the ten-year average of 15. U.S. authorities are currently investigating at least 35 different entity groups for possible FCPA violations.

On April 14, 2023, the U.S. Supreme Court affirmed the Court of Appeals for the Fifth Circuit’s decision in Cochran v. SEC, holding that district courts retain jurisdiction to consider claims challenging the constitutionality of the SEC's ongoing administrative proceedings without first having to wait for an adverse order from the administrative court. The decision permits companies and individuals to bring their constitutional challenges against the SEC in federal court prior to proceeding through the full administrative process.

Summary:

Enforcement activity in the first quarter of 2023 continued the slow trend seen over the last two years. The SEC initiated two FCPA-related Enforcement Actions. The DOJ filed one enforcement action, added an FCPA charge to an existing non-FCPA action, and issued one declination with disgorgement pursuant to the FCPA Corporate Enforcement Policy.

U.S. authorities are currently investigating at least 34 different entity groups for possible FCPA violations. Last quarter, only one company (Stanley Black & Decker, Inc.) first disclosed a new FCPA-related Investigation.

The DOJ announced updates to several polices impacting criminal enforcement in corporate FCPA cases. This report analyzes all the changes made in the last quarter.

Summary:

The DOJ and SEC filed 25 FCPA-related Enforcement Actions in 2022. Though an increase from 2021, last year’s enforcement activity remained well below the ten-year average of 36. The jump in enforcement activity last year led to a concomitant rise in FCPA Matters, which are groups of related enforcement actions that share a common bribery scheme. The nine FCPA Matters initiated in 2022 represent an increase of 50 percent compared to 2021, but that level remains well below the ten-year average of 15.

Only four companies disclosed in their SEC filings a new FCPA-related Investigation commenced by U.S. authorities in 2022. This marks the fourth year in a row that disclosed investigations have tracked well below the ten-year average of 17, a decline that appears to have commenced in 2018.

Summary:

FCPA enforcement in the third quarter of 2022 continued the moderate pace set over the last several quarters, with the DOJ initiating three FCPA-related Enforcement Actions compared to the SEC’s two. The DOJ settled with one corporate defendant and charged four individual defendants in two separate actions over the last three months. In addition, the DOJ publicly announced two earlier-filed enforcement actions, the first filed under seal in August 2020 and the second filed last quarter. The SEC settled administrative proceedings initiated against two corporate defendants.

U.S. authorities are currently investigating at least 32 different entity groups for possible FCPA violations. Although no company disclosed a new government Investigation in Q3, two companies first disclosed FCPA-related internal investigations during the period.

Summary:

After more than a year of slow activity, corporate enforcement levels picked up slightly in the second quarter of 2022, with the DOJ and SEC each initiating two FCPA-related Enforcement Actions. Yet despite the recent uptick, enforcement activity through the first six months of 2022 remains below average when compared to the same period over the last ten years.

U.S. authorities are currently investigating at least 31 different entity groups for possible FCPA violations. Last quarter, one company first disclosed a new FCPA-related Investigation, and one company disclosed that the SEC had joined the DOJ in an existing investigation.

Summary:

Enforcement activity remained slow in the first quarter of 2022, with the DOJ filing two FCPA-related Enforcement Actions and issuing one declination with disgorgement pursuant to the FCPA Corporate Enforcement Policy during the quarter and the SEC initiating one enforcement action. U.S. authorities are currently investigating at least 32 different entity groups for possible FCPA violations. Last quarter, only one company (Leidos Holdings, Inc.) first disclosed a new FCPA-related Investigation.

Russia’s invasion of Ukraine that began on February 24, 2022, and the significant sanctions imposed on Russia by the U.S., U.K. and the European Union, have upended global geopolitics and international business. It seems likely that the war will reverberate in the FCPA sphere for some time to come, both for companies seeking to do business in Russia or Ukraine and for government agencies seeking to enforce the FCPA based on misconduct in either country.

Summary:

Fueled by a steep drop in the number of actions filed by both agencies, 2021’s enforcement activity was the lowest in a decade. The DOJ and SEC filed 18 enforcement actions in 2021, which was significantly below the ten-year average of 36.

Only three companies disclosed in their SEC filings a new FCPA-related investigation commenced by U.S. authorities in 2021. This number continues a general downward trend in disclosed investigations that began in 2018, despite a slight increase in 2020. At least three additional companies first disclosed an FCPA-related internal investigation in 2021 without disclosing a related government inquiry.

Summary:

Enforcement activity remained quiet in the third quarter of 2021, with the DOJ filing two FCPA-related Enforcement Actions and announcing one previously filed action. The SEC filed only one new action in the third quarter. All three DOJ actions involved individual defendants, while the SEC filed its sole action against a corporate defendant.

The number of new FCPA-related Investigations publicly disclosed by companies has continued its downward trajectory in 2021. At the close of Q3, U.S. authorities appear to be actively investigating at least 33 different entity groups for possible FCPA violations. Between January 1 and September 30, only two companies first disclosed new FCPA-related investigations in their SEC filings.

Summary:

Enforcement activity remained quiet in the second quarter of 2021, with the DOJ filing three FCPA-related Enforcement Actions and announcing three previously filed actions, while the SEC filed only one new action. Five of the seven enforcement actions filed or announced between April and June involved individual defendants, and two involved subsidiaries of the John Wood Group plc.

Additionally, U.S. authorities are currently investigating at least 33 different entity groups for possible FCPA violations. Last quarter, at least one company (Tsakos Energy Navigation Ltd.) first disclosed a new FCPA-related Investigation by the DOJ or SEC.

Summary:

Enforcement activity was relatively quiet in the first quarter of 2021, with the SEC and DOJ filing three FCPA-related Enforcement Actions and announcing one previously filed action. DOJ proceedings comprised the bulk of first quarter enforcement activity, claiming three of the four actions filed or announced in the first three months of the year. Of the four total actions, two were parallel actions filed by the SEC and DOJ against the same corporate defendant – Deutsche Bank AG – and two were criminal actions filed against individuals for their role in a scheme to bribe government officials in Ecuador.

Additionally, U.S. authorities are currently investigating at least 34 different entity groups for possible FCPA violations. Last quarter, one company (Toyota Motor Corp.) first disclosed a new FCPA-related Investigation by the DOJ or SEC, and one company (Cisco Systems, Inc.) disclosed that it had initiated an internal investigation into possible FCPA-related misconduct and reported the internal investigation to the SEC and DOJ.

Summary:

The FCPA Clearinghouse’s 2020 Year in Review provides an overview of some of the more notable trends and statistics to emerge from last year’s FCPA enforcement activity.

The DOJ and SEC filed 36 enforcement actions in 2020. This number is just under the ten-year average and well below the level of activity seen in recent years. In fact, the SEC initiated only slightly more than half as many cases in 2020 as it did in either of the prior two years.

Sanctions skyrocketed in 2020 despite the decline in enforcement activity. Last year, U.S. regulators imposed over $5.8 billion in sanctions against corporations in FCPA-related enforcement actions, double the prior year and the second highest total sanctions imposed by U.S. regulators in FCPA history. The average global sanction imposed on entity groups ($447 million) was the highest in FCPA history and more than double the previous high reached in 2016.

Summary:

In the third quarter of 2020, the SEC and DOJ filed eight FCPA-related Enforcement Actions, and seven previously filed actions were announced or unsealed. DOJ proceedings comprised the bulk of third quarter enforcement activity, claiming 12 of the 15 actions filed, announced, or unsealed between July and September. Of the 15 total actions, four were against corporate defendants. Figure 1 shows all the enforcement actions filed, announced, or unsealed between July and September of 2020.

In addition, U.S. authorities are currently investigating at least 37 different entity groups for possible FCPA violations. Last quarter, no company disclosed a new FCPA-related Investigation by the DOJ or SEC. However, at least two companies (500.com Limited and Pactiv Evergreen Inc.) disclosed FCPA-related internal investigations during the third quarter. In both cases, the disclosures did not indicate that either the DOJ or SEC had initiated investigations into the companie.

Summary:

The second quarter of 2020 continued this year’s slower than average pace of FCPA-related enforcement activity. In the second quarter of 2020, the SEC filed three FCPA-related Enforcement Actions, two against corporate defendants and one against an individual. The DOJ filed two new enforcement actions, both against corporations.

The number of companies disclosing new FCPA-related investigations by U.S. authorities in the first six months of the year has dropped significantly since 2017 and is well below the ten-year average. U.S. authorities are currently investigating at least 40 different entity groups for possible FCPA violations. Last quarter, two companies first disclosed new FCPA-related Investigations by the DOJ or SEC. However, in both cases, disclosure of an internal or foreign investigation pre-dated disclosure of the investigation by U.S. authorities.

Summary:

In the first quarter of 2020, the SEC and DOJ filed four FCPA-related Enforcement Actions, and three previously filed actions were announced or unsealed. DOJ proceedings comprised the bulk of first quarter enforcement activity, claiming six of the seven actions filed, announced, or unsealed in the first three months of the year. Of the seven total actions, only two were against corporate defendants. Four of the five enforcement actions brought against individuals derived from the expansive investigation into corruption at Venezuela’s state-owned oil company.

U.S. authorities are currently investigating at least 43 different entity groups for possible FCPA violations. Last quarter, three companies first disclosed new FCPA-related Investigations by the DOJ or SEC. One of these investigations (Landec Corporation) was initiated by the company in the fourth quarter of 2019, although Landec first reported the DOJ and SEC investigations in Q1 2020, shortly after Landec voluntarily disclosed the misconduct to the agencies.

Summary:

FCPA enforcement activity increased slightly again in 2019, continuing a general trend of higher than the decade-long average enforcement level. While SEC enforcement activity has seen a notable jump in the last few years, the real increase in enforcement numbers is attributable to the DOJ, which significantly increased its enforcement activity in the second half of the decade.

As for Investigations activity, only six companies disclosed in their SEC filings a new FCPA-related Investigation commenced by U.S. authorities in 2019. This number represents a significant decline in the level of investigation activity by the DOJ and SEC and may be the most notable trend for 2019. By way of comparison, 15 companies disclosed new FCPA investigation commenced by U.S. authorities in 2018, and 20 did so in 2017. The 2017 level mirrors the 10-year average. Figure 7 shows the number of FCPA investigations initiated by the U.S. government is each of the last ten years.

Summary:

FCPA enforcement activity is often high in the third quarter of the calendar year (which corresponds to the end of the SEC and DOJ’s fiscal year), and the third quarter of 2019 was no exception. Enforcement activity this past quarter continued at the higher-than-average level seen in the first half of the year. Over the last ten years, the DOJ and SEC have filed, on average, 25 enforcement actions in the first nine months of the year. So far in 2019, the government has filed 31 enforcement actions. Though well above average, 2019 enforcement activity to date still lags behind 2016, 2010, and 2018.

Third-quarter sanctions were almost $79 million, which is well below the ten-year quarterly average of just under $353 million. While the level of enforcement activity has remained robust this year, the types of cases brought in the third quarter tended to result in smaller monetary settlements.

Summary:

Enforcement activity in the second quarter of 2019 continued at the higher-than-average level seen in the first quarter of the year. Over the last ten years, the DOJ and SEC have filed, on average, 15 enforcement actions in the first six months of the year. So far in 2019, the government has filed 20 enforcement actions. Mid-year enforcement activity in 2019 is the second highest in the past decade, just behind 2016 (with a mid-year total of 22 enforcement actions).

The first six months of 2019 mark the slowest pace of new FCPA investigation disclosures in any of the last ten years. Since 2010, an average of 13 companies have disclosed new FCPA investigations within the first six months of the year, compared with only two companies in 2019.

Summary:

The SEC and DOJ filed 12 enforcement actions in the first quarter of 2019, which makes first-quarter enforcement activity the highest since 2016 and considerably above the ten-year average. Over the last decade, the DOJ and SEC initiated an average of nine enforcement actions during the first three months of each calendar year, which is almost 27% less than the number of actions filed since the start of 2019.

First-quarter sanctions were also significantly higher than sanctions imposed in any other first-quarter period during the last ten years. The government filed and settled FCPA claims against three companies in the first quarter of 2019 and imposed total sanctions of over $1.1 billion.

U.S. authorities are currently investigating at least 45 different entity groups for possible FCPA violations.

Summary:

FCPA enforcement activity increased slightly in 2018, bringing the number of proceedings filed last year to just above the ten-year average. Figure 1 presents the number of Enforcement Actions filed per year for each of the last ten years. For purposes of these analytics, we treat declinations with disgorgement pursuant to the DOJ’s Revised Corporate Enforcement Policy as enforcement actions. The increase in enforcement activity in 2018 is attributable entirely to a rise in SEC enforcement actions. The SEC initiated 18 enforcement actions in 2018 compared to eight in 2017, representing a 125 percent increase in year over year enforcement.

As for Investigations activity, at the close of 2018, at least 54 companies had disclosed an ongoing FCPA-related Investigation by U.S. authorities, and an additional 13 companies had disclosed an ongoing internal investigation into potential FCPA violations. By way of comparison, at the end of 2017, at least 66 companies had reported ongoing FCPA-related investigations by the DOJ or SEC. At least 13 companies first disclosed an FCPA-related investigation in their 2018 SEC filings. While China took the top spot in FCPA-related enforcement actions initiated in 2018, Brazil is the country most frequently cited in connection with ongoing investigations.

Summary:

Foreign Corrupt Practices Act enforcement activity increased sharply in the third quarter of 2018. Between July and September, the DOJ and SEC nearly doubled the number of enforcement actions filed this year, increasing the total count from 19 at the end of Q2 to 33 at the end of Q3. The SEC took the lead in enforcement, initiating 9 of the 14 new actions (or 64 percent). In addition, the DOJ formally declined to prosecute one company and announced four actions that were filed under seal in previous quarters. With the massive global resolution against Petroleo Brasileiro S.A., commonly known as “Petrobras,” total sanctions imposed this year have more than doubled from over $1.2 billion at the end of the second quarter to almost $3.2 billion at the end of this quarter, though almost one-third of that total is payable to foreign regulators.

Summary:

After a slow start to 2018, Foreign Corrupt Practices Act enforcement activity increased in the second quarter, raising the potential for a banner year in FCPA-related penalties collected. Collectively, the Securities and Exchage Commission and Department of Justice initiated enforcement actions against five different entity groups and five individuals. Total sanctions, including those payable to fireign regulators, were more than $1.2 billion. The SEC and DOJ continue to investigate dozens of companies for potential FCPA violations.

Note: This FCPAC report originally appeared in the Risk & Compliance Journal, a blog maintained by the Wall Street Journal.

Summary:

Foreign Corrupt Practices Act enforcement is off to a slow start this year. The U.S. Department of Justice and the U.S. Securities and Exchange Commission filed fewer enforcement actions in the first three months of 2018 than in any first quarter since 2014. Nonetheless, the SEC and DOJ continue to investigate dozens of companies for potential FCPA violations, and several companies announced new investigations since the start of the year. At least three companies are likely to settle FCPA actions with the DOJ, the SEC or both in the coming months, based on accounting accruals disclosed in SEC filings.

Note: This FCPAC report originally appeared in the Risk & Compliance Journal, a blog maintained by the Wall Street Journal.

Summary:

After a slow start, the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) ramped up enforcement of the Foreign Corrupt Practices Act (FCPA) in the second half of 2017, resulting in three of the largest monetary sanctions in FCPA history. U.S. authorities have continued the trend of international cooperation, and three entity groups resolved FCPA claims in 2017 through use of a global settlement. For the first time in several years, misconduct in China was not the primary target of FCPA regulators. The DOJ made the FCPA Pilot Program introduced in 2015 permanent and incorporated its provisions into the DOJ’s manual for prosecuting corporations. The 2017 Year in Review provides an overview of some of the more notable trends and statistics to emerge from last year’s FCPA enforcement activity.

After a dramatic upsurge in FCPA enforcement activity in 2016, the number of enforcement actions initiated in 2017 returned to a level slightly below the ten-year average, but more typical of the last few years.

Summary:

After a relatively quiet second quarter, Foreign Corrupt Practices Act enforcement activity picked up slightly in the third quarter of 2017, but was still lower than in recent years. Between July 1 and Sept. 30, 2017, the DOJ and SEC each initiated three FCPA-related enforcement actions.

Note: This FCPAC report originally appeared in the Risk & Compliance Journal, a blog maintained by the Wall Street Journal.

Summary:

Foreign Corrupt Practices Act enforcement slowed in the first half of 2017, although speculation around the government's shifting enforcement priorities may be premature.

Between Jan. 1 and June 30, 2017, the SEC initiated FCPA enforcement actions against four entity groups and two individuals, while the DOJ initiated FCPA enforcement actions against five entity groups and two individuals and added FCPA claims to an existing action against one individual. Total monetary sanctions imposed to date in these actions exceed $108 million and are predicated on alleged total bribery payments of at least $50 million, although the value of some payments were not disclosed in the resolution documents

Note: This FCPAC report originally appeared in the Risk & Compliance Journal, a blog maintained by the Wall Street Journal.

Summary:

On March 10, 2017, Acting Assistant Attorney General Kenneth A. Blanco announced that the U.S. Department of Justice would temporarily extend a Foreign Corrupt Practices Act pilot program that was set to expire on April 5, 2017, while the DOJ evaluates the programs's "utility and efficacy." During the first year of the pilot program, the DOJ resolved FCPA claims that had been alleged against 18 entity groups.

Note: This FCPAC report originally appeared in the Risk & Compliance Journal, a blog maintained by the Wall Street Journal.

Summary:

2016 FCPA Year in Review - Foreign Corrupt Practices Act Clearinghouse - In 2016, the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) dramatically increased enforcement of the Foreign Corrupt Practices Act (FCPA), resulting in some of the largest monetary sanctions in FCPA history. China remained in the regulatory cross hairs, but shared the spotlight with several Latin American countries. Last year also witnessed the launch of an FCPA pilot program and the DOJ’s deployment of a new category of FCPA resolution. The 2016 Roundup provides an overview of some of the more notable trends and statistics to emerge from last year’s FCPA enforcement activity.

Note: This FCPAC report originally appeared in the Risk & Compliance Journal, a blog maintained by the Wall Street Journal.

Summary:

It has been just over a year since Deputy Attorney General Sally Yates issued new guidance to Department of Justice attorneys emphasizing individual accountability in all investigations of corporate misconduct. Many people may be wondering whether the guidance has resulted in more criminal charges being filed against individuals who commit Foreign Corrupt Practices Act violations on behalf of companies. The short answer is not yet, but that doesn't mean that changes are not forthcoming.

Note: This FCPAC report originally appeared in the Risk & Compliance Journal, a blog maintained by the Wall Street Journal.