3 Key Takeaways: Foreign Corrupt Practices Act Trends in 2017
Kilpatrick Townsend partner Adria Perez recently presented to the Association of Corporate Counsel (ACC) Georgia Chapter about key 2017 trends concerning the enforcement of Foreign Corrupt Practices Act (“FCPA”) against companies and individuals.
3 Key 2017 Trends are Emerging:
Utilizing Independent Corporate Monitors.
FCPA Pilot Program is Changing Internal Corporate Discussions.
Last Spring, the Department of Justice (DOJ) extended the FCPA Pilot Program’s (“Program”) term indefinitely. The Program:
Tolling Agreements Will Increase.
In Kokesh v. SEC, the U.S. Supreme Court concluded that the five-year statute of limitations period, under 28 U.S.C. § 2462, applies to disgorgement given it is a penalty. Even though Kokesh is a securities fraud case, the ruling affects how the Securities & Exchange Commission (“SEC”) deals with FCPA matters. Counsels should be ready for the SEC to request tolling agreements. Although the five-year limitation period could be a useful negotiation tool, if the company is seeking to cooperate in order to seek leniency, the government will likely ask the company to waive any limitation period as part of its cooperation.
FCPA enforcement is not going away. A true acceptance of the importance of compliance at every level of the company is key and must correspond with its culture and resources.
Adria L. Perez