Crisis Response &
Incident Investigation


Extension of FCPA Pilot Program Signals Commitment to Proactive Disclosure

Posted on: June 28th, 2017

The extended life of a Department of Justice program that promotes self-disclosure of violations of the Foreign Corrupt Practices Act signals a continued emphasis on individual culpability, according to two Eversheds Sutherland (US) lawyers experienced in defending against government investigations.

Olga Greenberg, who co-leads the firm’s Corporate Crime and Investigations and Securities Enforcement teams, co-authored a recent legal alert assessing the DOJ’s plan to keep the FCPA Pilot Program in operation. It had been scheduled to expire on April 5.

The extension means the DOJ “will continue to encourage proactive disclosure and remediation of potential FCPA violations for at least the near future,” wrote Ms. Greenberg with counsel and co-author Yvonne Williams-Wass. Both lawyers advise and defend companies confronted with internal and government investigations.

The FCPA pilot “emphasizes the identification of culpable individuals – including executives – by companies as part of full cooperation and disclosure.” The stated goal has been to promote greater accountability by motivating companies to voluntarily report misconduct, fully cooperate with investigators, and, where appropriate, remediate flaws in their controls and compliance programs, the two lawyers explained.

Last year was a record-breaking one for FCPA enforcement actions brought by the DOJ and the Securities and Exchange Commission. And during his confirmation hearings for Attorney General, Jeff Sessions said he would enforce the FCPA “as appropriate based on the facts and circumstances of each case,” notwithstanding President Trump’s earlier criticism of the law.