Combating corruption worldwide: SEC reinforces FCPA enforcement

Since the news of German company Siemens AG[1] being sentenced to a record-setting $450m fine in 2008, non-US corporations have had a firm eye on developments regarding the Foreign Corrupt Practices Act 1977 (FCPA) and its enforcement. As (criminal) wrongdoings, committed or facilitated by employees, cannot be completely prevented regardless of how comprehensive and elaborate the implemented criminal compliance[2] structures might be, corporations pay particular attention to possible benefits or advantages which can be gained during the preliminary stages of prosecutions or proceedings. Such benefits could range from Deferred Prosecution Agreements (DPA) or Non-Prosecution Agreements (NPA) to reduced charges and penalties. In order to be eligible for any of these benefits, corporations must cooperate with law enforcement authorities.