SEC and DOJ Continue to Intensify Foreign Corrupt Practices Act (FCPA) Enforcement for 2014
At the American Conference Institute’s 30th International Conference on the FCPA, held in the end of November last year, regulators from the SEC and DOJ both indicated that 2014 will prove to be another year of increased FCPA scrutiny and enforcement. Both agencies touted strengthened relationships with other U.S. agencies and overseas regulators, which will allow the SEC and DOJ to identify FCPA violations and bring more enforcement actions in 2014.
The SEC’s co-director of the enforcement division indicated that, in particular, the SEC expects FCPA violations will become “increasingly fertile ground” for the Dodd-Frank whistler-blower program. We previously reported on the SEC’s whistleblower award program under Dodd-Frank here. The DOJ estimated that it is currently investigating more than 150 cases of potential FCPA violations and expects to bring “very significant cases, top 10 quality type cases” in 2014. Officials from both the SEC and DOJ emphasized their continued focus on individual prosecutions, and cited several pending FCPA actions against high-level executives.
Both the SEC and DOJ discussed the importance of self-reporting potential FCPA violations by companies, and restated their willingness to show leniency for those who quickly self-report and work with the agencies to find solutions.