The Oil Industry and Africa: The Expanding Reach of the Foreign Corrupt Practices Act

2011 ◽  
Vol 4 (3) ◽  
Author(s):  
Stuart H. Deming
Keyword(s):  
Special Reference ◽  
Developing World ◽  
Oil Industry ◽  
Securities And Exchange Commission ◽  
Department Of Justice ◽  
Foreign Corrupt Practices Act ◽  
The Us ◽  
Over Time

As a statute designed to deter improper inducements to foreign officials in connection with business activities, the enforcement of the Foreign Corrupt Practices Act (FCPA) has over time dramatically increased in its reach. This article examines the reach of the FCPA into Africa with special reference to corrupt practices in the oil industry. Owing to the combined enforcement activities of the US Department of Justice and the Securities and Exchange Commission, it concludes by arguing that the FCPA's impact and potency in the developing world will continue to grow.

scholarly journals The Ways of Corruption in Infrastructure: Lessons from the Odebrecht Case

2021 ◽  
Vol 35 (2) ◽  
pp. 171-190
Author(s):  
Nicolás Campos ◽  
Eduardo Engel ◽  
Ronald D. Fischer ◽  
Alexander Galetovic
Keyword(s):  
Department Of Justice ◽  
Foreign Corrupt Practices Act ◽  
Corruption Case ◽  
The Us ◽  
Construction Firm ◽  
Media Reports ◽  
The Cost

In 2016, the Brazilian construction firm Odebrecht was fined $2.6 billion by the US Department of Justice. It was the largest corruption case ever prosecuted under the US Foreign Corrupt Practices Act. Our examination of judicial documents and media reports on this case provides new insights on the workings of corruption in the infrastructure sector. Odebrecht paid bribes for two reasons: to tailor the terms of the auction in its favor, as well as to obtain favorable terms in contract renegotiations. In projects where Odebrecht paid bribes, costs increased by 70.8 percent on average, compared with 5.6 percent for projects with no bribes. We also find that bribes and profits made from bribing were smaller than documented in most previous studies, in the range of one to two percent of the cost of a project.

scholarly journals Coordinating Compliance Incentives

2018 ◽  
Author(s):  
Veronica Root
Keyword(s):  
Securities And Exchange Commission ◽  
Repeat Offenders ◽  
Department Of Justice ◽  
Coordination Problem ◽  
Public Companies ◽  
Foreign Corrupt Practices Act ◽  
Institutional Misconduct ◽  
Compliance Programs ◽  
Effective Compliance ◽  
Enforcement Authority

102 Cornell L. Rev. 1003 (2017)In today’s regulatory environment, a corporation engaged in wrongdoing can be sure of one thing: regulators will point to an ineffective compliance program as a key cause of institutional misconduct. The explosion in the importance of compliance is unsurprising given the emphasis that governmental actors—from the Department of Justice, to the Securities and Exchange Commission, to even the Commerce Department— place on the need for institutions to adopt “effective compliance programs.” The governmental actors that demand effective compliance programs, however, have narrow scopes of authority. DOJ Fraud handles violations of the Foreign Corrupt Practices Act, while the SEC adjudicates claims of misconduct under the securities laws, and the Federal Trade Commission deals with concerns regarding anticompetitive behavior. This segmentation of enforcement authority has created an information and coordination problem amongst regulators, resulting in an enforcement regime where institutional misconduct is adjudicated in a piecemeal fashion. Enforcement actions focus on compliance with a particular set of laws instead of on whether the corporate wrongdoing is a result of a systematic compliance failure that requires a comprehensive, firm-wide, compliance overhaul. As a result, the government’s goal of incentivizing companies to implement “effective ethics and compliance programs” appears at odds with its current enforcement approach. Yet governmental actors currently have the tools necessary to provide strong inducements for corporations to, when needed, engage in restructuring of their compliance programs. This Article argues that efforts to improve corporate compliance would benefit from regulatory mechanisms that (i) recognize when an institution is engaged in recidivist behavior across diverse regulatory areas and (ii) aggressively sanction institutions that are repeat offenders. If governmental actors adopt a new enforcement strategy aimed at “Coordinating Compliance Incentives,” they can more easily detect when an institution is suffering from a systemic compliance failure, which may deter firms from engaging in recidivist behavior. If corporations are held responsible for being repeat offenders across diverse regulatory areas, it may encourage them to implement more robust reforms to their compliance programs and, ultimately, lead to improved ethical conduct and more effective compliance programs within public companies.

Part VII International Securities, Including Markets and Clearing Systems, 22 US Equity Market Structure

2021 ◽  
Author(s):  
Pittman Edward L ◽  
Kramer Howard L
Keyword(s):  
Equity Markets ◽  
Securities And Exchange Commission ◽  
Securities Regulation ◽  
Bank Failures ◽  
Market Participants ◽  
Us Congress ◽  
Securities Exchanges ◽  
The Us ◽  
Day To Day Operations ◽  
Over Time

This chapter provides an overview of the laws applicable to the markets and regulated market participants in the US. It recounts how US securities markets have evolved significantly over time due to advancements in technology and intervening efforts by lawmakers and securities regulators. It also notes the current US system of securities regulation, which was formulated in the early 1930s by the US Congress in an attempt to restore confidence in the financial system following a market collapse, bank failures, and widespread scandals. This chapter looks at the laws that directly affect the day—to—day operations of securities exchanges and equity markets in the US and are enforced by the US Securities and Exchange Commission (SEC). It also mentions the Securities Exchange Act of 1934 (Exchange Act) as the principal law that governs the US equity markets.

Sanofi settles FCPA charges with SEC for $25.2 million

2019 ◽  
Vol 20 (1) ◽  
pp. 27-30
Author(s):  
Jennifer Kennedy Park ◽  
Abena Mainoo
Keyword(s):  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Internal Controls ◽  
Healthcare Industry ◽  
Foreign Corrupt Practices Act ◽  
Content Type ◽  
Enforcement Action ◽  
Compliance Programs ◽  
The Us ◽  
Practical Implications

Purpose To explain a recent enforcement action by the US Securities and Exchange Commission (SEC) highlighting risk factors for Foreign Corrupt Practices Act (FCPA) violations. Design/methodology/approach Summarizes the basis of the SEC’s enforcement action against Sanofi for violating the FCPA’s books and records and internal controls provisions, reviews the terms of the SEC’s resolution with Sanofi, explains Sanofi’s remedial efforts and cooperation with the SEC’s investigation, and discusses factors contributing to corruption risks in the healthcare industry. Findings The SEC’s enforcement action against Sanofi, and other recent enforcement actions, underscore the importance of comprehensive anti-corruption compliance programs and strong internal controls across large multinationals and their subsidiaries. Practical implications Companies operating in high-risk industries and markets should regularly assess and address corruption risks. Originality/value Practical guidance from experienced enforcement lawyers.

7 Illicit Behaviour

2020 ◽  
Author(s):  
Liebi Martin ◽  
Markham Jerry W ◽  
Brown-Hruska Sharon ◽  
De Carvalho Robalo Pedro ◽  
Meakin Hannah ◽  
...  
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Securities And Exchange Commission ◽  
Government Officials ◽  
Economic Sectors ◽  
Futures Trading ◽  
Foreign Corrupt Practices Act ◽  
Foreign Government ◽  
The Us ◽  
The World

This concluding chapter explores regulations on illicit behaviour, including violations of embargo sanctions, bribery of government officials, and money laundering. Embargoes and financial related sanctions against ‘rogue’ countries are economic in nature and are designed to coerce such countries into conformance to international norms. Sanctions may be applied to particular economic sectors, or a country's economy may be entirely embargoed, sometimes with humanitarian exceptions. Moreover, sanctions may be applied to import and exports of commodities, but are also often applied to prevent access to banking and other financial services. Meanwhile, the US prohibits the bribery of foreign government officials in order to obtain business through the Foreign Corrupt Practices Act of 1977. The US has also led the world in combatting money laundering, which typically involves the deposit of proceeds from illicit activities into what appear to be legitimate banking or brokerage accounts. The Securities and Exchange Commission and the Commodities and Futures Trading Commission impose anti-money laundering requirements on the broker-dealers and futures commission merchants they regulate. Those requirements include supervisory programmes designed to prevent and detect use of firm accounts for money laundering.

scholarly journals Canadian Companies Beware: The U.S. Foreign Corrupt Practices Act Applies to You

1998 ◽  
Vol 36 (2) ◽  
pp. 455 ◽  
Author(s):  
Robert A. Bassett
Keyword(s):  
Securities And Exchange Commission ◽  
Department Of Justice ◽  
Foreign Corrupt Practices Act ◽  
The U.S

This article outlines how the U.S. Foreign Corrupt Practices Act applies to non-U.S. corporations and individuals, with particular reference to those entities in Canada. The author points out the dual requirements of the legislation — the accounting provisions and the anti-bribery provisions — and explains how the generous wording frequently makes them applicable to Canadian corporations and individuals, both directly and indirectly. Several cases are cited as examples of enforcement of the Act against non- U.S. corporations and individuals. The accounting provisions of the U.S. Securities and Exchange Commission are reviewed, as are the anti-bribery provisions of the U.S. Department of Justice.

scholarly journals American Extraterritorial Legislation

Theoria ◽  
2021 ◽  
Vol 68 (166) ◽  
pp. 113-129
Author(s):  
Ali Laïdi
Keyword(s):  
United States ◽  
Economic Sanctions ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Sensitive Information ◽  
Department Of Justice ◽  
Public Officials ◽  
Foreign Companies ◽  
The Us ◽  
Legal Procedures

Since the early 2000s, the United States’ different administrations of justice have been prosecuting foreign companies suspected of violating US laws on bribery of foreign public officials and of failing to respect embargoes and economic sanctions. Even if these violations take place outside US borders, the American prosecution authorities (including the Department of Justice, the Securities and Exchange Commission and the Office of Foreign Assets Control) consider themselves legitimate to intervene. European multinationals have been particularly sanctioned. For instance, in 2014, fines reached up to 9 billion dollars for the French bank BNP, which was accused of using dollars in its transactions with certain countries sanctioned by the US (mainly Iran, Cuba and Sudan). Punishing companies and hitting them in the wallet are not the only objectives of the American administration. The United States takes advantage of legal procedures against foreign companies to collect millions of bytes of data, sometimes including sensitive information on them as well as on their partners and markets. Facing this legal offensive, Europe is still struggling to provide responses to protect its companies.

scholarly journals Analysis of 220 Years of Floodplain Population Dynamics in the US at Different Spatial Scales

Water ◽  
2021 ◽  
Vol 13 (2) ◽  
pp. 141
Author(s):  
Firoza Akhter ◽  
Maurizio Mazzoleni ◽  
Luigia Brandimarte
Keyword(s):  
Population Dynamics ◽  
Large Scale ◽  
Spatial Scales ◽  
National Level ◽  
State Level ◽  
Economic Activities ◽  
Protection Measures ◽  
Management Planning ◽  
The Us ◽  
Over Time

In this study, we explore the long-term trends of floodplain population dynamics at different spatial scales in the contiguous United States (U.S.). We exploit different types of datasets from 1790–2010—i.e., decadal spatial distribution for the population density in the US, global floodplains dataset, large-scale data of flood occurrence and damage, and structural and nonstructural flood protection measures for the US. At the national level, we found that the population initially settled down within the floodplains and then spread across its territory over time. At the state level, we observed that flood damages and national protection measures might have contributed to a learning effect, which in turn, shaped the floodplain population dynamics over time. Finally, at the county level, other socio-economic factors such as local flood insurances, economic activities, and socio-political context may predominantly influence the dynamics. Our study shows that different influencing factors affect floodplain population dynamics at different spatial scales. These facts are crucial for a reliable development and implementation of flood risk management planning.

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