DOJ's First Win In 2015. Certainly Not The Last

DOJ's First Win In 2015. Certainly Not The Last

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#DOJ first #FCPA enforcement in 2015. Certainly will not be the last. #anticorruption #antibribery @sourceintel

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Monday, June 29, 2015 - 12:35pm

CONTENT: Article

The Securities and Exchange Commission, in recent years, has been the primary legal entity to enforce large fines to companies that violate the Foreign Corrupt Practices Act, by prosecuting many organizations with hefty fines. The Department of Justice is also well equipped in identifying and reacting to companies that have swindled in with corruption and bribery acts. According to the article “DOF Breaks Its Silence in 2015 FCPA Enforcement” by the National Law Review, the DOJ has confirmed it’s first enforcement action under the FCPA, with IAP World Services, who has confessed in conspiring to bribe Kuwaiti officials, in order to win a national contract for surveillance videos. The settlement, that is agreed to be paid by the company, is set at an amount of $7.1 million.

The company is also required to undergo a complete analysis of its internal and external measures to combat future possibilities of bribery and corruption. Many companies that see themselves in trouble with the SEC or DOJ typically increase their efforts on how they can prevent future problems.      

“In addition to the $7.1 million penalty, IAP has agreed to address deficiencies in its anti-corruption internal controls, compliance code, policies and procedures. Specifically, IAP has agreed to implement, among other things: (i) a comprehensive set of policies and procedures covering several types of potentially suspect payments; (ii) training programs; (iii) periodic risk-based reviews and other monitoring and testing; (iv) internal reporting mechanisms; and (v) accurate accounting, recordkeeping and internal reporting. The company also conducted an internal investigation, disciplined the officers and employees responsible, and going forward will subject proposals for relevant IAP contracts to a heightened review”

Minimizing risk for any global brand is difficult, especially when it pertains to managing 3rd party business partners overseas. The FCPA and other global regulations require you to understand that any business done on your behalf from any partner is still your responsibility. This is why maintaining a strong internal compliance program while mitigating and maximizing 3rd party risk is very crucial to any organization that is doing business globally and looking to expand in overseas markets. Understand your risk and the risk your 3rd parties present to you in this free Anti-Corruption compliance guidelines, which covers FCPA, UK Bribery Act, and Brazilian Clean Companies Act. Click here to view.