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John Davis Comments on Deferred Prosecution Agreements, Global Anti-Corruption Initiatives in Compliance Week

Subtitle
"The FCPA is Unlikely to Vanish Under President Trump"

Compliance Week

John Davis commented on the future of Foreign Corrupt Practices Act (FCPA) enforcement and global anti-corruption efforts under the Trump administration, including continued use of deferred prosecution agreements (DPAs), which are a favored tool for resolving FCPA investigations. Beyond the widely-reported criticisms of the FCPA by the president that date from prior to the campaign, there has been speculation the Department of Justice (DOJ) may cut back on the use of DPAs under Attorney General Jeff Sessions' leadership; he raised concerns about such resolutions in 2011. Because companies effectively concede to the relevant facts under DPAs, the agencies mostly get what they want, which is an admission or guilty plea, Davis said, adding that DPAs and NPAs [non-prosecution agreements] also give the Justice Department a more effective means to pursue culpable individuals, given that ongoing cooperation in such cases by the company is often part of the agreement. As to the overall enforcement climate going forward, Davis noted that if FCPA investigations and enforcement activity were to slow down, it would only shift the focus toward those countries that are now actively undertaking anti-corruption investigations and enforcement actions of their own. "In some ways that is its own driver," he said.