March 09, 2016
Yesterday, TRACE released the 2015 edition of its Global Enforcement Report (“GER”). TRACE publishes the GER annually to provide a summary of data in anti-bribery enforcement worldwide. There are a number of interesting trends identified in the 2015 GER, but three in particular are important to note.
- Non-U.S. Enforcement Activity Remains Robust
Compliance with non-U.S. laws concerning foreign bribery is crucial. Non-U.S. enforcement actions concerning alleged bribery of foreign officials dropped 73% in 2015, representing the lowest number of non-U.S. enforcement actions since 2007. However, there has not been a marked decrease in the number of non-U.S. investigations of alleged bribery of foreign officials. In fact, of the 251 ongoing investigations of alleged bribery of foreign officials, almost half were being conducted by countries other than the U.S., with 26 countries conducting investigations as of December 31, 2015.
- Countries Continue to Focus on Bribery of Domestic Officials
Companies must not focus on just the FCPA, UK Bribery Act or other foreign bribery laws, but must ensure that they are complying with local laws wherever they operate. More than twice as many countries are investigating the alleged bribery of their domestic officials by foreign companies as are investigating alleged bribery of foreign officials. Brazil is conducting the most investigations, followed closely by India and China. 26 countries have brought 79 enforcement actions against foreign companies for the alleged bribery of domestic officials, with South Korea, Algeria, China and Nigeria leading the pack.
- The Manufacturer/Service Provider Industry Faces More U.S. Investigations
No industry is safe from an investigation or enforcement action. Globally, the extractive industries face the brunt of enforcement actions. But in the U.S., manufacturers and service providers are the top focus of investigations. U.S. investigations also have focused more on the technology/software and financial services industries, while U.S. enforcement actions have focused more on the aerospace/defense/security and health care industries.
For more information on trends in global enforcement of anti-bribery laws, please click here.
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