The Foreign Corrupt Practices Act (FCPA) enforcements concerning Tysers Insurance Brokers and H.W. Wood Limited have been notable in the legal world, revealing both longstanding and emerging tendencies in FCPA enforcement. The implications of these settlements are something every legal professional should mull over, providing a valuable lens into federal enforcement priorities.
What drew weight to these cases is the emphasis on the role of intermediaries in FCPA violations. This is not new, given that many companies have previously met their downfall due to risky interactions with facilitators. The Department of Justice (DOJ) and Securities and Exchange Commission (SEC) have for years stressed the importance of applying appropriate due diligence on any third parties.
The DOJ and SEC, in their FCPA Resource Guide, explicitly recommend exhaustive due diligence on any intermediaries. Companies are guided to ensure any payments to third parties don’t serve as proxies for bribes. Payments to intermediaries should be aligned with a valid business rationale, scrutinized, and appropriately documented.
While the recognition of the intermediary role isn’t new, the two settlements point to something innovative. This is the continued enforcement focus on the insurance industry. In recent years, this industry has seen an increasing amount of FCPA scrutiny. Despite not being historically high-risk for corruption, the SEC is investing more resources into this sector, reflecting a shift in FCPA enforcement.
Tysers Insurance Brokers and H.W. Wood Limited have been key players in the spotlight, marking a clear message for the industry. Legal professionals should not shy away from these case studies but rather take them as a prompt to re-evaluate their anti-bribery compliance policies and procedures.
For more details on the Tysers Insurance Brokers and H.W. Wood Limited settlements, refer to the detailed analysis provided by The Volkov Law Group.