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
HOUSE_OVERSIGHT_022570