Commercial Bribery

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DOJ Promises Whistleblower Rewards Pilot Program and Adds AI Risk to Its Evaluation of Corporation Compliance Programs

On March 7, 2024, US Deputy Attorney General, Lisa O. Monaco announced the development of a new “DOJ-run whistleblower rewards program” during her speech at the American Bar Association’s 39th National Institute on White Collar Crime.[1]  The announcement signals “a 90-day sprint to develop and implement a pilot program, with a formal start date later this … Continue Reading

Webinar: The New Foreign Extortion Prevention Act – What It Means for US Companies

Please join us on Tuesday, January 30 for a discussion about “the most consequential anti-foreign-bribery law passed in almost 50 years”: the Foreign Extortion Prevention Act (FEPA). FEPA allows the DOJ to prosecute foreign officials who demand or accept a bribe from a U.S. citizen or company. Our seasoned team of three former Department of … Continue Reading

Recent Changes to FATF’s “Grey List”; Could the UAE be Next Off the List?

Between October 25 and October 27, 2023, the Financial Action Task Force (“FATF”), an international policy-making and standard-setting body dedicated to combating money laundering and terrorist financing, held its third plenary meeting of the year (the “October Plenary”), at which it made important updates to its list of jurisdictions under increased monitoring, often externally referred … Continue Reading

FEPA: the New Tool in the DOJ’s Fight Against Corruption

On December 22, 2023, President Biden signed into law the Foreign Extortion Prevention Act (hereinafter “FEPA” or the “Act”) which was passed by the US Congress as part of the Fiscal Year 2024 National Defense Authorization Act.  The Act aligns with the current administration’s national security agenda in that it broadens the scope and reach … Continue Reading

U.S. Sanctions Review: A Recap of OFAC’s Recent Enforcement Actions (Second Half 2023)

The second half of 2023 saw eight enforcement actions from the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”).  These actions reflect a range of penalties, industries, sanctions programs, conduct, and lessons learned.  Below are some highlights from OFAC’s enforcement releases and settlement agreements. Penalties OFAC imposed a total of $984,851,289.90 in penalties … Continue Reading

Noteworthy Trends in French White Collar Crime

France’s Sapin II Law was created in 2016 to address corporate corruption and implement antibribery measures. The legislation took effect in 2017, marking a significant shift in the country’s regulatory compliance landscape. The law, which tracks closely with similar laws in the US, UK, and other EU countries, requires large companies [1] to implement a … Continue Reading

Can a Private Person Defraud the Public of Honest Services?

Last month in Percoco v. United States (U.S. May 11, 2023), the Supreme Court reversed the petitioner’s judgment of conviction for conspiracy to commit honest-services wire fraud for allegedly accepting $70,000 from a developer in return for asking a state agency to drop its labor peace agreement requirement. Joseph Percoco had previously served as Executive … Continue Reading

Account Freezing and Forfeiture Orders: is the FCA waking up to its investigative powers?   

The author and editors would like to thank Eben Kurtz for his contributions to this post. On 21 April 2022, the U.K.’s Financial Conduct Authority (“FCA”) secured its first Account Forfeiture Order (“AFO”), a tool used for asset recovery under Part 5 of Proceeds of Crime Act 2002 (”POCA”), for a sum of £2,000,000 against … Continue Reading

Fugitive Diamantaire Faces Extradition from UK to India

A UK court recently fixed a remand hearing in the extradition case of Nirav Modi, a fugitive diamond merchant and the prime accused in a USD 2 billion Punjab National Bank (PNB) fraud case. After Vijay Mallya (Indian businessman) and Sanjeev Chawla (alleged cricket bookie), Mr. Modi’s case is the third in a series of … Continue Reading

Criminal Finances Act 2017 – New Corporate Offences of Failing to Prevent Facilitation of Tax Evasion

The United Kingdom’s National Risk Assessment of money laundering and terrorist financing in October 2015 identified three priority risks faced by the UK and concluded that a more robust enforcement response is required. These changes were to be underpinned by a partnership between the government and the private sector to effect a significant change in … Continue Reading

The Act on Fighting Corruption in the Healthcare Sector

On 29 July 2015, the German government introduced a legislative initiative with the aim of fighting corruption in the healthcare sector. On 4 June 2016, the German Act on Fighting Corruption in the Healthcare Sector (Gesetz zur Bekämpfung der Korruption im Gesundheitswesen – Act) entered into effect under which the criminal offences of taking and … Continue Reading

Fighting Corruption and Fraud- the ICU and SFO

The United Kingdom’s regime against bribery, corruption and fraud is operating in a new landscape following the introduction in August 2015 of the International Corruption Unit (ICU), a new governmental agency created under the auspices of the Department for International Development (DFID). The latest step in the clampdown on nefarious business practices came as the … Continue Reading

DOJ’s Criminal Division Launches new FCPA Pilot Program

In an effort to enhance its ability to investigate and prosecute Foreign Corrupt Practices Act (FCPA) cases, the Department of Justice’s (DOJ) Criminal Division has launched a new one-year FCPA pilot program effective April 5, 2016. The program has three main goals: Motivate companies to voluntarily self-disclose FCPA-related misconduct Motivate companies to fully cooperate with … Continue Reading

First Company Convicted of Bribing Foreign Officials Ordered to pay £2.2 million

Smith and Ouzman Ltd and two of its directors, were convicted by a Jury under the Prevention of Corruption Act 1906 (POCA) in December 2014, although the company was finally sentenced on 8 January 2016. The company was convicted under the previous legislation because the offences pre-dated the Bribery Act 2010. The small family run … Continue Reading

Deferred Prosecution Agreements: The Sign of Things to Come?

In a landmark decision, the first Deferred Prosecution Agreement (“DPA”) was approved  on Monday at the Royal Courts of Justice, by Lord Justice Leveson.  The DPA was introduced as a means of alternative disposal following a criminal investigation into a corporate organisation back in February 2014, under the Crime and Courts Act 2013[1]. It is … Continue Reading

UK Government makes U-turn on the reform of corporate criminal liability

In September 2014, the new Attorney General, Jeremy Wright, revealed that the government was considering introducing a new offence of corporate failure to prevent economic crime, such as fraud and money laundering, similar to the corporate offence in the UK Bribery Act 2010 of an organisation failing to prevent bribery. In its UK Anti-Corruption Plan, … Continue Reading

Cooperation is Key – Scottish Company receives civil penalty for contravention of Bribery Act

Brand-Rex Limited, a Scottish company specialising in developing cabling solutions for network infrastructure and industrial applications, has become the first UK Company to be penalised for contravention of Section 7 of the Bribery Act 2010. The company avoided criminal prosecution and was instead ordered to pay £212,800 by way of a civil recovery order after … Continue Reading

SMEs and the UK Bribery Act – Compliance may not be as difficult as you fear!

Despite the fact that the Bribery Act 2010 (the “Act”) came into force on 1 July 2011, a recent government study has found that only two-thirds of SMEs are aware of the Act or its corporate offence for failure to prevent bribery (under section 7 of the Act). Of those that were aware of the … Continue Reading

New EU directive allows public contract suppliers convicted of corruption to “self-clean” their bad behaviour

The Public Contacts Directive (2014/24/EC – the “2014 Directive”)[1] sets out the legal framework for public procurement when contracting authorities seek to acquire supplies, services, or works (e.g. civil engineering or building). The intention is that procurement rules become simpler and more flexible. Despite the 2014 Directive not requiring transposition into Member States’[2] law until … Continue Reading

Is the First UK Deferred Prosecution Agreement (DPA) on the Horizon?

The UK Serious Fraud Office (SFO) has publically announced that it has sent out the first invitation letters offering DPAs to corporations. In this blog we discuss: the definition of a DPA; the new attitude in relation to DPAs and movement towards the first DPA; and co-operation with the SFO– dos and don’ts. Quick Recap: … Continue Reading

Australian Federal Police (AFP) Launch Crackdown on Foreign Bribery by Corporates

The AFP’s new Fraud and Anti-Corruption Centre (FAC Centre) says it is ramping up investigations on foreign bribery, sending a clear warning that Australian companies with foreign operations need to get their house in order. FAC Centre Manager Commander Linda Champion recently told The Australian Financial Review that the AFP “started ramping up [their] efforts … Continue Reading

Monthly China Anti-Bribery Update Report — July 2015

1. New laws or regulations State level: No developments. Local level (Beijing & Shanghai): No developments. Communist Party Rules: No developments. 2. Upcoming laws or regulations No developments. 3. Government Action (1) On July 3, 2015, Li Fengchun (“Li”), the former Deputy Inspector of the Standing Committee of Xinyu Municipal People’s Congress and the former … Continue Reading

Five Minutes on… Anti-Bribery and Corruption Laws in Europe

Anti-bribery and corruption has been a hot topic in the US for almost 40 years. The topic has historically however received much less attention within Europe. That is now changing as Europe is beginning to catch up and many European countries have already implemented anti-bribery laws much stricter than those in the US. Recent events … Continue Reading

The UK Serious Fraud Office (SFO) gets serious

Reports suggest that the SFO is currently investigating and prosecuting serious allegations of complex fraud and corruption. The announcement this spring that the SFO had started an investigation into the Bank of England’s actions following the rigging rumours, (as reported by the BBC amongst others) demonstrates its intention to pursue high-profile offenders. David Green, who … Continue Reading
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