- The court found Frederic Bourke, Jr. was willfully blind and as an investor he should have done more due diligence and should have known that the energy company he invested in bribed foreign officials.
- The government told Nature’s Sunshine’s CFO and COO they should have had better controls over financial reporting, even though the SEC never stated they specifically knew of the bribery happening within the corporation.
- The average cost of an FCPA settlement is $50 million plus the expense for an external monitor to validate a compliance program is in place for the next 10 to 20 years. This does not include investigation expenses.
- The U.S. Department of Justice assessed nearly $2 billion in fines in 2010. Eight of the top 10 FCPA settlements occurred in 2010. BAE Systems was the third largest fine at $500 million. Daimler AG had $185 million in fines and disgorgements. Snamprogetti had $365 million in fines (the fourth-largest).
- Charles Jumet, former VP of Ports Engineering Consulting Corporation, was sentenced to 87 months in prison.
- Siemens spent $850 million in fees and expenses to investigate anticorruption. Daimler had a five-year investigation that cost over $500 million.
- Monitoring and measuring
- Continual improvement
- In addition, mandates such as those provided by the Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA) broaden the scope and compliance requirements for listed organizations or those within the financial services industry.
This is the second in my series on Compliance Management in the 21st Century. The previous ones have been:
I would love to hear your thoughts as well – please share them.
For those that cannot wait for all of my upcoming posts – you can read my thoughts and perspectives in my most recent written report: Compliance Risk Management in the 21st Century.