Bass, Berry & Sims attorney Jamie Parkinson authored an article discussing recent communications and positions expressed by the U.S. government regarding Foreign Corrupt Practices Act (FCPA), which have caused practitioners and compliance professionals to evaluate whether the risk environment has changed and implications if it has.
Jamie cautioned against reactively modifying risk tolerance, citing the longevity of the FCPA and how it has become significantly embedded into the compliance culture of global supply chain companies as the industry is exposed to more acute corruption risks.
The memorandum released by the Department of Justice (DOJ) emphasized total elimination of cartels and transnational criminal organizations, safeguarding fair opportunities for U.S. companies, advancing U.S. national security, and prioritizing investigations of serious misconduct.
Jamie provided a list of key risk considerations based on the DOJ guidelines and highlighted how it allows counsel numerous potential arguments about the scope and pace of an investigation.
“For those companies that face FCPA and corruption risk issues – including supply chain companies that operate across borders – the U.S. government’s pronouncements about enforcement priorities merit close attention and awareness,” Jamie said. “Because the corruption risks inherent to global operations are no different than before, now is not the time to modify risk tolerance to take on more risk.”
The full article, “FCPA Enforcement: Why Now is Not the Time to Revise Risk Tolerance Measures,” was published by Supply & Demand Chain Executive on September 1 and is available online.