Corporations worried about compliance with the Foreign Corrupt Practices Act—which would be, like, all of them—have a few more glimpses into the costs of investigating and settling FCPA probes that might prove to be useful benchmarks.
FCPA headlines tend to be dominated by large corporations settling large corruption problems, with large fines and penalties in tow. The standard example is Siemens, the giant German engineering firm that paid $1.6 billion in 2008 to settle FCPA charges after a two-year internal investigation that spanned 30 countries and cost the company $850 million.
Most FCPA probes aren’t anywhere near that magnitude, but they can still impose significant costs to a company in relative terms. Just this month, for example, Alvin, Texas-based industrial services company Team, Inc. disclosed that it spent $3.2 million on an investigation into possible bribes paid by its Trinidad unit—more than six times the $50,000 in alleged bribes in question.
Maxwell Technologies also disclosed on July 29 that it has set aside nearly $13 million to settle FCPA charges with the Securities and Exchange Commission, and General Electric last month settled FCPA charges for $23 million. Neither company said how much it spent internally to investigate the bribery allegations
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Source: complianceweek.com
By: Melissa Klein Aguilar
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