The Anti-Corruption Report

The definitive source of actionable intelligence covering anti-corruption laws around the globe

Articles By Topic

By Topic: Debarment

  • From Vol. 7 No.14 (Jul. 11, 2018)

    DPAs Go North: Modernizing Bribery and Corruption Enforcement in Canada

    Among the significant steps the Canadian government has taken over the past year to strengthen and modernize its anti-corruption regime is the introduction of deferred prosecution agreements to resolve cases. In a guest article, Blake, Cassels & Graydon attorneys Mark Morrison, Michael Dixon and John Fast discuss how the new system will work and how DPAs can bolster compliance by incentivizing a collaborative approach to bribery and corruption prevention through certain, predictable outcomes and procedures for self-reporting, reparations and remediation. See “Growing Pains in the Evolution of Canadian Anti-Corruption Enforcement” (Mar. 1, 2017).

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  • From Vol. 6 No.9 (May 10, 2017)

    Preparing for the Sometimes Surprising Impact of Multilateral Development Banks

    Multilateral development banks (MDBs) finance development projects around the world and companies involved in those projects often are not aware of their connection to MDBs – and the potential consequences. As Glenn Ware, PwC principal and global intelligence leader, told The FCPA Report, understanding exposure to MDBs is crucial because those banks have audit rights, and can debar a company not only for corruption, but other violations as well. He explained how that debarment can have spiraling consequences, including DOJ and SEC investigations and credit downgrades, and gave advice for mitigating the risk of debarment. See also “The World Bank’s Wide Reach and Its Growing Anti-Corruption Program” (May 28, 2014).

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  • From Vol. 3 No.11 (May 28, 2014)

    The World Bank’s Wide Reach and Its Growing Anti-Corruption Program

    “What is the World Bank and why do I care what it thinks?”  Tim Coleman, a partner at Freshfields Bruckhaus Deringer, told The FCPA Report that many clients have that question – often prompted by an unexpected notice from the World Bank.  Companies that have contracted with foreign governments on a World Bank-financed project, along with companies that have signed deferred prosecution agreements with the DOJ containing a World Bank cooperation clause, may have put themselves in the World Bank’s jurisdiction.  “Any company or individual who touches my money is subject to the jurisdiction of my office,” Stephen Zimmermann, Director of Operations of the Integrity Vice Presidency of the World Bank, said at a speech at the American Conference Institute’s FCPA conference in New York.  And, he said, “just about every developing country project has World Bank money.”  The World Bank, which made $35 billion in loans last year to tens of thousands of contractors, is increasingly using its economic and political leverage to enforce its rules against fraud, collusion, obstruction, corruption and coercion. Penalties include not only debarment from the World Bank and the other major global development banks, but because the World Bank cooperates with governments around the world, investigations and potential penalties under national anti-corruption regimes.  Recently, a panel of World Bank experts at the Practising Law Institute’s FCPA and International Anti-Corruption Developments program, including Zimmermann, addressed critical issues about the Bank and its investigations.  One of the panelists, Tim Coleman, a partner at Freshfields, along with associate Jonathan Ware, further spoke with The FCPA Report about the challenges companies may face when the Bank investigates them and whether it makes sense for companies to settle.  See also “Doing Business with the World Bank: Understanding and Avoiding Debarment,” The FCPA Report, Vol. 2, No. 10 (May 15, 2013).

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  • From Vol. 3 No.6 (Mar. 19, 2014)

    Siemens’ Debarment Highlights the Crux of the Brazilian Business Challenge: Corruption Is Clear, But Anti-Corruption Law Is Ambiguous

    A Brazilian federal court has ruled that Siemens A.G., Europe’s largest engineering firm and FCPA enforcement action veteran, is prohibited from participating in public auctions and signing government contracts in Brazil for five years.  Some of the conduct at issue appears to be related to the bribery charges Siemens resolved in the U.S. and Germany in 2008.  Determining the impact of this ruling for companies doing business in Brazil, and for Siemens itself, is difficult, Mayer Brown’s Kelly B. Kramer told The FCPA Report.  This is because of the country’s protracted appellate process, its decentralized enforcement system, its new and largely untested anti-corruption law and other country-specific factors.  See also “Lessons Learned on Crafting Compliance Programs from the Largest FCPA Case in History,” The FCPA Report, Vol. 1, No. 3 (Jul. 11, 2012); “The Changing Dynamics of Anti-Corruption Enforcement in Brazil,” The FCPA Report, Vol. 2, No. 23 (Nov. 20, 2103).  Despite the challenge of pinpointing the precise impact of this ruling, the development nonetheless offers useful lessons for companies operating in Brazil.

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  • From Vol. 2 No.10 (May 15, 2013)

    A Guide to Disclosing Corruption Investigations in SEC Filings (Part Two of Four)

    Public companies that discover evidence of potential anti-corruption violations are faced with a series of difficult decisions.  One of the most critical decisions is whether and when the company should disclose the potential violation and investigation in its public SEC filings.  Public companies are required to disclose material information, but determining when an FCPA investigation becomes material is more of an art than a science.  Further complicating matters, making such a disclosure to the SEC can carry serious consequences, including civil lawsuits, stock price instability, reputational damage, waning employee morale and productivity, loss of current government contracts and debarment from future contracts.  The FCPA Report is publishing a series of articles addressing the crucial issues public companies face when anti-corruption allegations surface.  In addition to analysis and insight from practitioners, this series will include a compendium of actual FCPA-related disclosures from recent SEC filings compiled with help from Intelligize’s database and search tools.  These real-world examples of relevant disclosures can serve as precedents for counsel tasked with drafting or reviewing SEC filings relating to an FCPA issue.  This article, the second in the series, details the risks inherent in disclosure and non-disclosure; addresses ways to diminish those risks, including handling media coverage; and discusses best practices when disclosing foreign investigations to the SEC.  The first article in the series discussed factors that companies should consider when determining whether a public disclosure is appropriate; what experts a company should retain to help it make appropriate disclosure decisions; and the risks and benefits of disclosing at different stages of the anti-corruption investigation.  The third installment will provide insight on the most beneficial language to use in disclosures and analyze Wal-Mart’s disclosures during different periods of its recent investigation.  Finally, in the last installment in the series, The FCPA Report will publish the referenced compendium of SEC disclosures, categorized by their attributes.

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  • From Vol. 2 No.10 (May 15, 2013)

    Doing Business with the World Bank: Understanding and Avoiding Debarment

    For companies that deal with the World Bank, the risk of debarment from future contracts with the Bank, and cross-debarment from doing business with other multi-lateral development banks, looms large.  That can be the penalty for misconduct in World Bank projects – sanctionable offenses include not only bribery of foreign officials, but bid rigging and other types of fraud.  Adding teeth to the enforcement regime, World Bank loan documents provide the Bank with audit rights, and the Bank has tight relationships with law enforcement agencies and regulators around the world.  The Bank is now publishing its sanctions decisions publicly.  Understanding and navigating the multi-layered World Bank sanctions system and its anti-corruption standards is paramount for companies that may be involved in projects financed through the Bank.  A recent webinar provided insight from World Bank insiders, detailing the operations of the World Bank sanctions program, from investigation to imposition and implementation of sanctions.

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  • From Vol. 1 No.6 (Aug. 22, 2012)

    Four Ways to Minimize Multi-Jurisdictional Risk When Settling FCPA Charges with the DOJ or SEC

    It used to be that a corporation that wished to resolve claims of anti-corruption violations simply had to negotiate a settlement with U.S. authorities.  Until recently, most countries have been content to leave the United States to enforce the FCPA without venturing into the anti-corruption waters themselves.  Yet recent multi-jurisdictional developments in anti-corruption law – such as an increase in the enforcement of anti-corruption laws by foreign countries – have complicated companies’ abilities to settle anti-corruption investigations with certainty and predictability.  Indeed, foreign investigations following DOJ and SEC settlements have been increasing steadily, including investigations arising out of the Siemens, Panalpina and Bonny Island FCPA settlements.  This enforcement trend highlights the need for careful strategic planning, on a multi-jurisdictional level, for handling anti-corruption investigations and settlements.  In a guest article, Charles F. Smith and Gary DiBianco, both partners at Skadden, Arps, Slate, Meagher & Flom LLP, and Brittany Parling, a Skadden associate, discuss trends in multi-jurisdictional enforcement of anti-corruption laws and lay out four factors companies should consider when negotiating and evaluating settlements in a multi-jurisdictional context.

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