The Anti-Corruption Report

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

Articles By Topic

By Topic: World Bank

  • From Vol. 7 No.13 (Jun. 27, 2018)

    Anti-Corruption Enforcement Continues to Increase Around the World

    Once largely the province of U.S. authorities, anti-corruption enforcement has evolved into an international norm in recent years. Recently, the World Bank, regulatory agencies in the United Kingdom and several Latin American countries have each engaged in significant anti-corruption activity. In a guest article, Dechert attorneys Jeremy Zucker, Darshak Dholakia, Hrishikesh Hari, Jacob Grubman and Eric Auslander analyze recent anti-corruption efforts outside the United States. For more, see “How Significant Is the DOJ’s New Directive on Coordination?” (May 16, 2018).

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  • From Vol. 6 No.14 (Jul. 19, 2017)

    First FCPA Actions Under Sessions’ DOJ Are Declinations With Disgorgement 

    The Trump administration has entered the FCPA enforcement fray by issuing two declination-with-disgorgement letters under the ongoing Pilot Program. The first was for gas supplier Linde in connection with a profit-sharing arrangement between Linde’s newly acquired subsidiary and Georgian officials. The second was for CDM Smith, an engineering and construction company, and resolved issues relating to the bribery of highway officials in India in exchange for contracts. Linde agreed to disgorge $7.82 million and forfeit $3.14 million, and CDM Smith agreed to disgorge $4.04 million. “The Sessions DOJ, through these resolutions, has demonstrated its commitment to the Pilot Program through rewards to companies that timely self-disclose, cooperate, remediate and disgorge profits,” Edward Kang, a partner at Alston & Bird, told The Anti-Corruption Report. See “A Close Look at the DOJ’s New Declination-Plus-Disgorgement Settlement Approach” (Oct. 12, 2016).

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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.5 (Mar. 5, 2014)

    Troubled SNC-Lavalin Appoints New CCO

    SNC-Lavalin, the Canadian construction and engineering giant, has been mired in corruption allegations and charges for years.  Many of its executives face corruption charges and many of its affiliates are included on the World Bank debarment list.  Among its continuing efforts to turn the page on these scandals, the company recently appointed a new CCO, David Wilkins.  The FCPA Report examines that appointment, SNC-Lavalin’s corruption troubles and some of the steps it has taken to fix them.  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.3 (Feb. 5, 2014)

    Gibson Dunn Attorneys Take the Pulse of Anti-Corruption Risks in Emerging Markets

    The anti-corruption enforcement landscape is changing and emerging markets, with their endemic cultures of corruption and vast economic opportunity for many multi-national companies, are at the forefront of that change.  Many are implementing and enforcing their own laws, but the deep-seated risks of corruption still exist.  A recent panel of emerging market experts from Gibson Dunn & Crutcher LLP highlighted the current anti-corruption initiatives and trends in key foreign markets.  The presentation, “FCPA Trends in the Emerging Markets of China, the Middle East and Africa, Russia and India,” featured Gibson Dunn partners F. Joseph Warin, Benno Schwarz, Kelly S. Austin and Peter Gray.  See also “Lessons from the Latest Anti-Corruption Developments in the U.K., Brazil and China,” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013).

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  • From Vol. 2 No.20 (Oct. 9, 2013)

    How Can Companies Capture the Telecom, Energy and Resources Opportunities in Africa While Mitigating Corruption Risks?

    “Africa is bigger than we think.”  Thomas Laryea, a partner at Dentons US LLP, and his fellow panelists at a recent panel sponsored by Dentons and AlixPartners described just how big it is – in terms of size, opportunity and risk.  Panelists discussed Africa-specific issues that companies doing or contemplating doing business there should know, and also presented a summary of results of a survey done by Dentons and AlixPartners, the full results of which The FCPA Report has exclusively.  The survey measured companies’ perception of the strategic importance of doing business in Africa, their understanding of African business opportunities and the corruption risks and compliance issues executives face in the region.  The survey can be interpreted to reveal the gap between the stereotypical perceptions of a monolithic continent with endemic corruption and the more nuanced reality of a diverse Africa with tremendous opportunity, if risks are carefully managed.

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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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