Enforcement, Sanctions and Cooperation with Authorities
Authorities and outcomes
The US DOJ and SEC enforce the FCPA; the UK SFO and other agencies enforce the Bribery Act. Outcomes include guilty pleas, deferred prosecution agreements, non-prosecution agreements, declinations and monitorships. Penalties can include fines, disgorgement, imprisonment and debarment. Parent companies may face liability for subsidiaries’ conduct, and buyers can inherit liability in mergers.
Cooperation
Cooperation credit is generally greater for voluntary self-disclosure, full cooperation and timely remediation. US Sentencing Guidelines and DOJ policy reward these factors; UK deferred prosecution agreements require cooperation and remediation. Cooperation means proactive disclosure of facts, not merely answering questions.
Sanctions and collateral effects
Beyond criminal penalties, consider exclusion from public contracts, export controls, sanctions and reputational damage.
Worked example
A company discovers an agent paid a customs official. It stops the payment, preserves evidence, self-discloses, cooperates and remediates. The authority may offer a declination or reduced penalty. Concealment and slow remediation increase exposure.
Traps
Assuming a DPA is an acquittal. Thinking cooperation is passive. Failing to preserve privilege. Ignoring collateral sanctions and multi-jurisdictional exposure.