July 1, 2008:
The Business Case for Preventing Foreign Bribery:
Current Issues in Global Anti-Corruption Compliance and Enforcement

Panelists Sokenu, Ware, and Pieth

 

Mark Pieth, Chair of the OECD Working Group on Bribery in International Business Transactions, Professor at the University of Basel Law School, Basel, Switzerland

Claudius O. Sokenu, Esq., Partner, Co-Chair of the Securities Enforcement & Investigations Practice, Mayer Brown LLP, New York, NY

Glenn T. Ware, Esq., Managing Director, Anti-Corruption Service Group, PwC, (former Chief Investigative Counselor, Department of Institutional Integrity, The World Bank Group)

Enforcement levels of the US Foreign Corrupt Practices Act (FCPA) have reached new heights: in 2007, the number of new enforcement proceedings brought by the Department of Justice and Securities Exchange Commission set a new record, doubling the number of cases brought in 2006. The first quarter of 2008 promises yet another record enforcement year. The US government takes an expansive approach to jurisdiction over foreign bribery cases: enforcement actions have been triggered by the listing of a foreign company on an American exchange or by actions on US territory in connection with bribes paid to a foreign official by a non-resident company.

Companies increasingly also have to navigate foreign anti-bribery laws. Jurisdictions in developed and emerging markets have stepped up implementation of the OECD Convention against Foreign Bribery (1997) through the enactment of strict anti-corruption laws and more aggressive enforcement. In addition to fines or imprisonment sanctions can include companies being blacklisted by government procurement offices and international financial institutions, not to mention the significant reputational damage that can be suffered.

When faced with bribery allegations, companies need to make numerous strategic decisions, including determining how to interact with enforcement agencies in multiple jurisdictions, where policies and cultures may differ. Another important consideration is self-reporting after a systematic internal investigation, which has become a viable avenue to correct corrupt practices and reduce sanctions. However, with the prospect of parallel multi-jurisdictional proceedings, deciding who to report to first, and when, becomes crucial, and raises questions of international double jeopardy. 

SALA President Jascha Preuss introduces the panel

Panelist Claudius Sokenu

 

Prof. Mark Pieth and the Hon. Paul Volcker