1 / 13

The FCPA - A real risk in Ukraine

The U.S. Foreign Corrupt Practices Act (FCPA) poses a significant compliance challenge for companies operating in Ukraine. This article explores the broad reach of the FCPA, potential penalties, recent cases, and best practices for FCPA investigations.

wjensen
Download Presentation

The FCPA - A real risk in Ukraine

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The FCPA - A real risk in Ukraine

  2. The U.S. ForeignCorrupt Practices Act (FCPA) is… A broad, extra territorial reaching law, designed to prevent bribery of foreign officials worldwide A requirement that a Company's books and records be kept in an accurate and transparent manner A major compliance challenge for any company worldwide which can fall in the scope of the FCPA

  3. The Long Arm of the FCPA

  4. Potential Penalties Criminal (DOJ) Civil (SEC) • Corporations and other business entities: • Up to USD 2,000,000 or twice the benefit received • Officers, directors, stockholders, employees, and agents: • Up to USD 100,000 or twice the benefit received • Imprisonment up to five years • The Attorney General or the SEC may bring civil claims, civil actions for injunctive relief • Shareholder and derivative actions filing damage compensation claims Disgorgement Imposition of Monitor/Consultant

  5. Recent FCPA Cases All located outside the U.S. SocieteGenerale S.A., France Deutsche Bank, Germany Panasonic, Japan Telia, Sweden Sanofi, France USD 296 million2019 USD 16 million 2019 USD 25 million 2018 USD 965 million 2017 USD 585 million 2018 USD 231 million 2019 USD 1.78 billion 2018 USD 76.7 million 2018 USD 850 million 2019 USD 143 million2018 Credit Suisse Group AG, Switzerland PetroleoBrasileiro S.A. - Petrobas, Brasil MTS, Russia Technip plc, UK Fresenius Medical Care, Germany

  6. Statistics and Ukraine 37+ 16 $ 2.89 billion Company enforcements in 2018 Publiclyknown investigations in 2018 Penalties in 2018 5 KNOWN (!)Ukraine-relatedcases since 2013

  7. The Danger Zone

  8. Who canbebribed?

  9. Allowed level of gifts and hospitality

  10. M&A Deals and FCPA risks

  11. FCPA Investigation – Best Practices

  12. Thank you for your attention! Ario Dehghani Counsel 10 MuzeynyProvulok Kyiv 01001, Ukraine tel. +38 044 499 00 00 mob.+38 093 168 60 30 Email: ADehghani@sk.ua

  13. Who is in the scope of the FCPA? • Any corporation that has issued securities registered in the United States or who is required to file periodic reports with the SEC Issuers • Any individual who is a citizen, national, or resident of the United States, or any business entity, regardless of form, which has its principal place of business in the United States, or which is organized under the laws of a State of the United States, or a territory, possession, or commonwealth of the United States • Domestic Concerns • Foreign nationals and businesses if it causes, directly or through agents, an act in furtherance of the corrupt payment to take place within the territory of the United States • Foreign nationals and businesses

More Related