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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.



 
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Blog Categories

  • Background Investigations
  • Conferences & Trade Shows
  • Due Diligence
  • Ethical Sourcing
  • FCPA Compliance
    • 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

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