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FCPA Penalties,
Sanctions, and
Remedies
FCPA PENALTIES,
AND REMEDIES
What Are the Potential Consequences
for Violations of the FCPA?
The FCPA provides for different criminal and civil
penalties for companies and individuals.
Criminal Penalties
For each violation of the anti-bribery provisions, the
FCPA provides that corporations and other business enti-
ties are subject to a fine of up to $2 million.) Individuals,
including officers, directors, stockholders, and agents of
companies, are subject to a fine of up to $100,000 and
imprisonment for up to five years.>”
For each violation of the accounting provisions, the
FCPA provides that corporations and other business enti-
ties are subject to a fine of up to $25 million.>* Individuals
are subject to a fine of up to $5 million and imprisonment
for up to 20 years.>#
Under the Alternative Fines Act, 18 U.S.C. § 357 1(d),
courts may impose significantly higher fines than those pro-
vided by the FCPA—up to twice the benefit that the defen-
dant sought to obtain by making the corrupt payment, as
long as the facts supporting the increased fines are included
in the indictment and either proved to the jury beyond a
reasonable doubt or admitted in a guilty plea proceeding.”
SANCTIONS,
Fines imposed on individuals may not be paid by their
employer or principal.*
U.S. Sentencing Guidelines
When calculating penalties for violations of the FCPA,
DOJ focuses its analysis on the US. Sentencing Guidelines
(Guidelines)*” in all of its resolutions, including guilty pleas,
DPAs, and NPAs. The Guidelines provide a very detailed and
predictable structure for calculating penalties for all federal
crimes, including violations of the FCPA. To determine the
appropriate penalty, the “offense level” is first calculated by
examining both the severity of the crime and facts specific to
the crime, with appropriate reductions for cooperation and
acceptance of responsibility, and, for business entities, addi-
tional factors such as voluntary disclosure, cooperation, pre-
existing compliance programs, and remediation.
The Guidelines provide for different penalties for the
different provisions of the FCPA. The initial offense level
for violations of the anti-bribery provisions is determined
under § 2C1.1, while violations of the accounting provi-
sions are assessed under § 2B1.1. For individuals, the initial
offense level is modified by factors set forth in Chapters 3,
4, and 5 of the Guidelines to identify a final offense level.
This final offense level, combined with other factors, is used
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