The United States Department of Justice Announced a Series of New Foreign Corrupt Practices Act (FCPA)-Related Charges, Resulting in Hefty Penalties and Fines Amounting to USD 91 Million for Various Companies

07 Aug 2023
  • DMD Advocates
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The United States Department of Justice announced a series of new Foreign Corrupt Practices Act (FCPA)-related charges, resulting in hefty penalties and fines amounting to USD 91 million for various companies.

A research and consulting services company was fined over $2.45 million for violating various provisions of FCPA in connection with a corrupt arrangement with a South African consulting firm to obtain and retain contracts from the South African Revenue Service. (5/26/2023)

A medical device manufacturer faced a staggering $62 million penalty for violating the books and records and internal accounting controls provisions of the FCPA through its subsidiaries in China. Employees in Chinese subsidiaries sought to improperly influence government hospital officials to secure tenders through questionable tactics. (05/11/23)

An oil services company settled for approximately $8 million after being charged with FCPA violations related to payments made by its subsidiaries to an Angolan government official through a purported sales agent. (4/26/23)

A Europe based gaming giant paid a $4 million civil penalty for violating the books and records and internal accounting control provisions of FCPA in connection with payments to consultants in Russia. The payments were linked to the company’s operations and efforts to have poker legalized. (03/06/23)

A global mining company agreed to a $15 million civil penalty for violating the FCPA’s provisions. The charges were related to payment of $10.5 made to a consultant to retain mining rights to certain mining blocks by offering or paying money to benefit government officials. (03/06/23)

Key Takeaway
The above charges are indicative that the FCPA-related risks continue to pose a serious compliance challenge to U.S-based businesses that operate in high-corruption-risk countries.

How DMD can help?
The professionals at DMD advocates help you by conducting compliance assessments, risk analysis, and developing tailored policies and procedures to ensure FCPA compliance. It is imperative to provide employee training, implement due diligence on third parties, review internal controls, and establish monitoring systems. Staying updated on regulatory changes, the firm can help companies maintain high governance standards and navigate international business confidently.

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