Trends and Developments in Global Anti-Bribery Enforcement

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1 IIA Norge 2017 Trends and Developments in Global Anti-Bribery Enforcement Pia Vining Senior Director, Due Diligence 30 May 2017 Raising the Standard of Anti-Bribery Compliance Worldwide 2016 TRACE International, Inc.

2 Record year in 2016 The U.S. has been concluding enforcement actions at an unprecedented rate Other jurisdictions have been stepping up their prosecution rates New anti-corruption laws continue to be passed worldwide Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 2

3 Enforcement Actions Concerning Bribery of Foreign Officials ( ) Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 3

4 Total Enforcement Actions Concerning Bribery of Domestic and Foreign Officials by Industry (excluding United States) Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 4

5 U.S. Enforcement Actions Concerning Bribery of Domestic and Foreign Officials by Industry Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 5

6 Enforcement Actions Concerning Bribery of Foreign Officials by Country Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 6

7 Greater international cooperation US has been the historic standard-bearer for anticorruption actions for 30 years Recently the US enforcement agencies (DOJ and SEC) have: Created a network of liaisons Trained foreign prosecutors Shared documents and other evidence Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 7

8 Globalization of enforcement Investigating fraud is costly prosecutors are underresourced Shortfall in resources is being countered with increased bi-lateral contacts between national authorities Joint, coordinated and multi-jurisdiction investigations are now the norm One total cost to anti-corruption violators equitably split up by authorities Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 8

9 Beyond prosecuting agencies Investigative journalism efforts are changing the playing field Panama Papers Internal documents from Mossack Fonseca (a Panamanian law firm that sells anonymous offshore companies) published International cooperation: around 400 journalists from more than 100 media organizations in over 80 countries have taken part in researching the documents UNAOIL Massive leak of confidential documents exposed corruption within the oil industry where government contracts were awarded as a result of bribes Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 9

10 Operation Car Wash Ongoing investigation related to Petroleo Brasileiro S.A. (Petrobras) Brazil s state-controlled oil company Global effort international cooperation requests with 43 countries Prosecutors from 10 countries formed a task force to share evidence in the investigation (Mutual Legal Assistance Treaties) Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 10

11 Odebrecht / Braskem Brazilian construction conglomerate Odebrecht and petrochemical company Braskem announced a $3.5 billion global settlement related to the long-running money laundering investigation Operation Car Wash Largest foreign bribery penalty in history Sharing of fines and penalties between US, Switzerland and Brazil (majority of penalty to Brazil) Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 11

12 Rolls-Royce Limited Investigations on three different continents Reached a settlement with authorities in the UK, the US and Brazil in January 2017 $170 million to the U.S. Department of Justice, $25 million to Brazil's Ministério Público Federal and over $600 million to Britain's Serious Fraud Office Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 12

13 New US Leadership President Donald Trump FCPA is a horrible law and it should be changed Puts US business at a huge disadvantage Attorney General Jeff Sessions Generally viewed as a law-and-order prosecutor In April stated in no uncertain terms that the DOJ will continue to strongly enforce the FCPA and other anticorruption laws Prospects for significant FCPA weakening are low Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 13

14 What does this mean to Nordic companies? More aggressive enforcement of own bribery laws More cooperation with US authorities Increased use of investigative techniques previously reserved for drug and organized crime cases Increased focus on corporate compliance programs Risk of detection has never been higher The price of bribery will inflate in the future Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 14

15 Visit us online at facebook.com/traceinternational Questions? twitter.com/trace_inc youtube.com/traceinternational linkedin.com/company/ TRACE-international-inc- Pia Vining Raising the Standard of Anti-Bribery Compliance Worldwide 5/26/ TRACE International, Inc. 15