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Abstract: 

The U.S. government continues to aggressively investigate and prosecute cases under the Foreign Corrupt Practices Act (FCPA), and there were major corporate and individual enforcement actions brought in 2013. Financial institutions need to understand and assess their FCPA risks, and take appropriate steps to mitigate those risks, before they land in the government’s cross-hairs. This article summarizes potential theories of FCPA liability for financial institutions, discusses the recent rise in FCPA whistleblower activity under the Dodd-Frank Act, and sets out the pros and cons of voluntarily disclosing an FCPA violation to the government. The authors conclude by providing guidance about how financial institutions can manage their FCPA risks given the current enforcement climate.

Keywords: Foreign Corrupt Practices Act; liability; risk mitigation; FCPA whistleblower; voluntary disclosure; FCPA private equity; FCPA hedge fund

Affiliations:  1: Alston & Bird; 2: Alston & Bird.