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Lawmakers Criticize FCPA Enforcement, Hear Calls to Amend Law
By Colby Adams
printSenate panel members Tuesday criticized the U.S. Justice Department's enforcement of a U.S. anti-bribery law even as representatives from the commercial sector asked Congress to better shield it from penalties. In the last five years, the number of enforcement actions brought under the U.S. Foreign Corrupt Practices Act (FCPA) exceeded the total number of actions brought from 1977-when the law took effect-to 2005, according to U.S. Justice Department statistics. Since 2005, fines under the law have totaled at least $1.5 billion, according to the department. But in the context of punishing and deterring bribery, "fines don't amount to a whole...
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To Comply With Anti-Bribery Law, Banks Must Be Careful with Payments for Licenses, Sovereign Clients
As prosecutors continue to accuse companies and individuals of foreign bribery, banks should be cautious about how they acquire licenses and sovereign wealth accounts, and where their clients send money abroad, say consultants.
Pending U.S. guidance for the country's foreign anti-bribery law and an ongoing political push to amend its rules could mean compliance changes for banks and other businesses, say analysts.
Since its inception, some of the country's top corporations have asked lawmakers to scale back the reach of the Foreign Corrupt Practices Act, which prohibits bribing foreign officials in conjunction with business deals, with one notable absence: the banking lobby.
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The United Kingdom's law enforcement arm said Wednesday that it would not pursue convictions under a new anti-bribery law against companies and individuals with a limited presence in the country.
A stringent new British anti-bribery law will be implemented before the end of the year despite concerns from the business community and the Cameron government, according to the measure's authors.
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The rise in U.S. prosecutions of companies that bribe foreign officials won't likely plateau for another four or five years, when European countries are expected to further clamp down on the crime, according to the former assistant chief for the Fraud Section of the Justice Department.
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