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Looking Back And Moving Forward – 2023 FCPA Enforcement Trends And Patterns
09/17/2024While 2023 saw a slight increase in the number of FCPA enforcement actions from 2022, there was a marked decline in total penalties from the prior year. Last year, the DOJ and the SEC resolved a total of 14 corporate enforcement actions under the FCPA—four more than 2022—but yielded total penalties of approximately $571 million, as compared to $1.68 billion in 2022. As in previous years, the geographic reach was generally diverse, with corporate enforcement actions targeting activity in Latin and Central America, Asia, and Africa.
Mirroring the trend in corporate enforcement actions, DOJ enforcement actions against individuals also saw a decline from 2022—and this was despite repeated statements by Biden Administration officials that they intend to focus on holding individuals accountable. In 2023, the DOJ charged or unsealed charges against 12 individuals in FCPA-related cases. That reflects a similar downward trend from 23 in 2021 to 18 in 2022. Despite the decline in individual enforcement, 2023 saw greater geographical diversity in terms of the courts in which charges were filed. While most individuals were charged in the Southern District of Florida, the DOJ also brought charges in the Central District of California, the Southern District of Texas, the Southern District of New York, and the District of Connecticut. As was the case in 2022, the SEC did not charge any individuals for FCPA-related conduct in 2023.
In the 2023 edition of the FCPA Trends and Patterns publication, we discussed highlights from last year’s FCPA enforcement, including:
- a total of 14 corporate enforcement actions resolved by the DOJ and SEC with total sanctions of approximately $571 million—a notable decrease from the prior year;
- a total of 12 individuals charged by the DOJ in FCPA-related cases, continuing the downward trend;
- two DOJ public declinations with disgorgement;
- the SEC’s continued reliance on the broad FCPA accounting provisions;
- the DOJ’s further updates to its voluntary self-disclosure policy;
- increased enforcement cooperation among agencies in the U.S, as well as cross-jurisdictional cooperation among foreign agencies;
- the DOJ’s Clawback Pilot Program’s first full year of implementation;
- the DOJ’s launch of its M&A Safe Harbor Policy; and
- the adoption of the Foreign Extortion Prevention Act (FEPA), extending the federal bribery statute to criminalize receipt of bribes by foreign officials.
To read more about the trends and patterns in FCPA enforcement in 2023 and implications for future FCPA enforcement, click here.
