What are the Penalties for FCPA Violations

In civil enforcement actions under the FCPA, penalties include fines of up to $10,000 per violation. These penalties can be imposed against issuers; corporate domestic concerns; company officers, directors, employees, and agents; and, foreign nationals. The SEC also has the authority to seek enhanced penalties equal to the amount of the financial gain achieved as a result of the violation or up to $500,000, whichever is greater. The SEC and DOJ can seek injunctive relief as well in order to prevent future bribes in violation of the FCPA.

There are two types of FCPA certifications. Some commercial entities offer “FCPA Certification” programs that provide training on the statute’s requirements. While this training can be useful, the certification itself is not regulatory in nature and generally does not provide much commercial value. Typically, companies will find it more effective to hire FCPA compliance counsel to provide training that is custom-tailored to their specific operations rather to put their employees through a generic training program.

The other type of FCPA certification is a contractual certification that one or both parties to the contract will abstain from violating the FCPA. Obtaining these certifications can be an essential component of an FCPA compliance program, as companies can face exposure due to the acts of third parties in some circumstances. Additionally, the U.S. Government requires foreign entities to certify to FCPA compliance in some cases. Visit here