The Foreign Corrupt Practices Act (FCPA) was passed in 1977 in order to address issues of corruption and bribery in overseas dealings by US companies. In recent years, enforcement of the FCPA by the Securities and Exchange Commission (SEC) has spiked, as public and governmental awareness of corruption has led to more action on this front.
But in the SEC’s latest report, it revealed that FCPA enforcement actions have dropped in the past year, even while monetary sanctions continue to rise. A report for fiscal year 2013 (which ended on Sept. 30) noted that the number of enforcement actions fell by two-thirds. There were only five such actions in 2013, as compared to 15 actions in 2012 and 20 in 2011.