Foreign Corrupt Practices Act: Efficient and Effective Compliance Solutions in a Heightened Enforcement Environment
George J. Terwilliger, III

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Foreign Corrupt Practices Act (FCPA) enforcement actions increased almost 100 percent from 2006 to 2007 and over 700 percent from 2004 to 2007. The FBI has added dedicated agent positions to FCPA investigations, and the US Department of Justice (DOJ) has touted its "strategic and deliberate plan" to step-up FCPA enforcement. High-profile enforcement actions frequent the headlines in this and other publications. As a result, corporate compliance officers have yet another challenge to face on a global basis.

In many companies, compliance budgets are already stretched, particularly for public companies subject to the substantial reporting and certification requirements of Sarbanes-Oxley (SOX). To meet the challenge of current enforcement trends, corporate compliance officers face balancing and allocating limited compliance resources. This requires both assessment of the FCPA risk to be addressed and managing that risk in a prudent and efficient manner. Addressing and managing such risk requires proactive compliance efforts, as well as efficient management of internal investigations into suspected FCPA issues. As a foundation for discussion of such proactive steps and management of investigations, a review of FCPA basics may be helpful.