FCPAméricas Blog
How FCPA Enforcement Officials Discover Violations
1.24.2013
People throughout Latin America often ask me how FCPA enforcement officials discover that a company has bribed a foreign official. It is a good question. Foreign bribery usually happens far away from the United States. Bribery by its very nature plays out in the darkness. Those committed to making improper payments are also committed to making sure their tracks are covered. So the chances that the DOJ or SEC would learn about a violation seem pretty slim.
In reality, there are many ways, more than one might think, for foreign bribery to come to light. Consider the following, which represents just a sample:
Voluntary Disclosures: The government puts forth a strong case for why companies should self-disclose the violations they uncover themselves (see, e.g., the FCPA Guidance at 54-56): “The DOJ and SEC place a high premium on self-reporting, along with cooperation and remedial efforts, in determining the appropriate resolution of FCPA matters.” Such efforts can lead to fine reductions under §8C2.5(g) of the U.S. Sentencing Guidelines... Read more
Other Notable FCPA Developments in Latin America in 2012
1.17.2013
Earlier this week, FCPAméricas discussed Latin America’s Top FCPA Enforcement Activity in 2012. Today’s post offers three other notable FCPA developments in the region last year. These developments demonstrate how FCPA enforcement efforts are playing out there.
Embraer Investigation Continues: The SEC’s investigation into potential corrupt payments by Brazil-based commercial airline manufacturer Embraer (the world’s third largest) in three non-U.S. countries was announced near the end of 2011. The company had received a subpoena from the SEC related to its sales of aircraft outside of Brazil. In 2012, the company made SEC disclosures with updated information about the investigation. In its October 2012 filing to the SEC, it stated:
In the event that the SEC and/or DOJ investigations result in enforcement action, we may be required to pay substantial fines and/or to incur other sanctions, as provided in the FCPA. Our management, based upon the opinion of our outside counsel, continues to believe that there is no basis for estimating reserves or quantifying any possible contingency.
The p... Read more
Latin America’s Top FCPA Enforcement Activity in 2012
1.15.2013
FCPA enforcement in the past year left no doubt that Latin America, especially the dynamic economies of countries like Brazil and Mexico, continues to present considerable corruption risks to the companies and businesspeople operating there. Here is a recap of key developments in 2012:
Wal-Mart (Mexico, Brazil): Growing FCPA Awareness. The New York Times reporting on allegations of bribery by Wal-Mart in Mexico (here and here) shook not only the United States but Latin America as well. Before the case broke, many Latin American businesspeople had a vague notion of the FCPA. Now FCPA-compliance conferences are starting to fill up and businesspeople are asking targeted questions. Governments are responding too. It only took the Mexican Federal Government a few days to change course after initially announcing that it did not have jurisdiction over the alleged wrongdoing.
Why is this case such a big one? First and foremost is this awareness. Compliance practitioners understand that awareness c... Read more
