Pause on FCPA Enforcement: Considerations for the Board

Key Takeaways:

• Maintain Tone at the Top: Boards should confirm that their commitment to compliance and ethical behavior remains strong and consistent, even with the DOJ's pause on new FCPA investigations. This includes consistent messaging throughout the organization.
• Review Third-Party Risk Management: Companies should reassess their third-party risk management programs to make sure they are not inadvertently engaging with entities associated with transnational criminal organizations (TCOs) or terrorist organizations.
• Refresh Risk Assessment: Boards should ask management to perform a thorough risk assessment, with an intentional focus on operations.
• Geographical Focus: Companies should evaluate the culture and increased risk in regions where they operate, to maintain compliance and mitigate risks associated with these areas.
• Revisit Whistleblower Processes: Boards should ask to be kept appraised of all whistleblower reports and resolutions.
• Independent Investigations: In cases where there is a potential threat or pressure to pay a bribe, boards should facilitate independent investigations, involving outside counsel and forensic accountants to maintain objectivity and thoroughness.

Related Resources:

• FCPA Compliance: A Practical Guide for Identifying and Mitigating the Risk of Violations