In this article, Marc Alain Bohn and Michael Skopets discuss developments in U.S. Foreign Corrupt Practices Act enforcement thus far in 2016. "After a relative slowdown in 2015, the pace of enforcement activity under the Foreign Corrupt Practices Act has increased sharply in 2016, resulting in a record 15 first-quarter enforcement actions and 17 year to date," the authors said. "This pickup in enforcement dispositions announced by both the U.S. Securities and Exchange Commission [SEC] and the U.S. Department of Justice [DOJ] appears to be a natural rebound following the drop in resolved enforcement actions during the second half of 2015." The authors observed a reduced pace of enforcement in 2015 but noted it was likely due to the confluence of a variety of factors rather than indicative of a trend.
"The FCPA dispositions entered into by the U.S. enforcement agencies in 2016 to date reflect many of these factors and may represent a microcosm of enforcement trends we are likely to see in the near term on the FCPA front: a DOJ focus on high-value corporate settlements; a significant number of 'lower impact' corporate enforcement dispositions by the SEC that the DOJ frequently chooses not to pursue; a rise in criminal and civil enforcement actions against individuals; renewed scrutiny of the health care sector; a continued emphasis on China, along with a focus on other high-risk regions such as Latin America and former Soviet Union countries; and an acceleration of efforts to cooperate with other enforcement agencies, foreign and domestic," the authors said. This article is excerpted from Miller & Chevalier's FCPA Spring Review, which is available here.