Due Diligence International
 Kreller Blog  |  Contact Us  |  1-800-444-6361   Kreller Due Diligence on YouTube  Kreller Due Diligence on Twitter  Kreller Due Diligence on LinkedIn  Kreller Due Diligence on Google Places  Kreller Due Diligence on Facebook
Kreller Group
site search  

Kreller Blog

The Real Cost of FCPA Non-Compliance
Tuesday, October 16, 2018

the kreller group

It’s no great secret there are major corporations that see the risk of FCPA non-compliance as “part of the cost of doing business.” However, the strategy of taking the chance – and paying the fines if caught – can be more financially damaging than expected.  

We recently researched the total cost of non-compliance for the past two years, and the stats are surprising. Here are some of the key takeaways from our findings:  

2017 FCPA Incompliance Fines/Costs: ·         No. of Corporate Enforcement Actions brought by the DOJ           
·         No. of Corporate Enforcement Actions brought by the SEC              7
·         Criminal Fines Collected by SEC from FCPA Enforcement Actions    $289 Million
·         Criminal Fines Collected by DOJ from FCPA Enforcement Actions   $845 Million  

For 2018, there have already been 9 enforcement actions by the DOJ and SEC, with an estimated total of $997 million in fines.  

The regions most affected by these enforcement actions from 2017 to present are:
·         Latin/South America
·         Asia
·         Africa
·         Middle East
·         Europe  

And, as for the “non-compliance being the cost of doing business” approach, it might be thought-provoking to consider these Top 10 Largest Monetary Sanctions for Non-Compliance:   1.       Alstom S.A.                                                        $772 Million
2.       Societe Generale S.A.                                      $567 Million
3.       Siemens Akitengesellschaft                            $448 Million
4.       Kellogg Brown & Root LLC                              $402 Million
5.       BAE Systems PLC                                              $400 Million
6.       Siemens Akitengesellschaft (SEC)                $350 Million
7.       Teva Pharmaceutical Industries Ltd.             $283 Million
8.       Telia Company AB, et al.                                   $274 Million
9.       Total, S.A.                                                            $245 Million
  10.       Technip, S.A.                                                      $240 Million  

At Kreller, we’ve found that when it comes to FCPA compliance, performing the proper due diligence is the better way to reduce the costs of doing business.

If you would like to learn more about how Kreller can help, you can reach out to Scott Shaffer directly at sshaffer@kreller.com | 513.723.8011.

Complimentary Business
Risk Assessment


Blog Categories

  • Background Investigations
  • Conferences & Trade Shows
  • Due Diligence
  • Ethical Sourcing
  • FCPA Compliance
    • 12/17/2018 - For Compliance Databases, a ‘N
    • 10/16/2018 - The Real Cost of FCPA Non-Comp
    • 01/27/2016 - Safe Harbor 2.0 - January 31st
    • 06/18/2015 - DOJ’s Expanding Jurisdiction
    • 05/22/2015 - Global Anti-Corruption and Ant
    • 12/02/2014 - Important DOJ Update on Merger
    • 10/28/2014 - Kreller Risk Assessment Matrix
    • 10/22/2014 - Whistleblower: Compliance Offi
    • 09/30/2014 - Instrumentality Defined for FC
  • Hot Topic Report
  • News

Tag Cloud

What Our Clients Say…

In the competitive world of due diligence services, Kreller consistently provides high-quality and comprehensive reports. I regularly recommend Kreller to compliance professionals who need professional, cost-effective and timely due diligence investigations around the globe. Kreller representatives are responsive and solution-oriented to meet the client’s needs.

-Michael Volkov, Attorney, Volkov Law Group

Stay in Touch...

Sign up for regular updates about the latest in due diligence and FCPA compliance.
© 2019 Kreller Group. All rights reserved. | KOL Portal | Kreller Code of Ethical Conduct | Careers | Privacy Policy | Terms & Conditions | Site Map
Privacy Shield