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HOUSE_OVERSIGHT_022581

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Or an extensive internal investigation to determine extensive FCPA training to employees of the new whether any of the company’s subsidiaries in the subsidiary, and promptly incorporated the new same region had engaged in misconduct. subsidiary into the company’s existing internal e Thecompany self-reported the misconduct and the controls and compliance environment. results of its internal investigation to DOJ and SEC. e The company cooperated fully with investigations Example 6: Private Company Declination by DOJ and SEC. In 2011, DOJ declined to take prosecutorial action e In addition to the immediate training at the relevant against a privately held U.S. company and its foreign subsid- subsidiary, the company provided comprehensive iary. Factors taken into consideration included: FCPA training to all of its employees and conducted e The company voluntarily disclosed bribes paid to an extensive review of its anti-corruption compliance social security officials in a foreign country. program. e The total amount of the bribes was small. e The company enhanced its internal controls and e When discovered, the corrupt practices were imme- record-keeping policies and procedures, includ- diately terminated. ing requiring periodic internal audits of customs e The conduct was thoroughly investigated, and the payments. results of the investigation were promptly provided e As part of its remediation, the company directed that to DOJ. local lawyers rather than customs agents be used to e Allindividuals involved were either terminated handle its permits, with instructions that “no matter or disciplined. The company also terminated its what, we don’t pay bribes’ —a policy that resulted in relationship with its foreign law firm. a longer and costlier permit procedure. e The company instituted improved training and compliance programs commensurate with its size Example 5: Public Company Declination and risk exposure. DOJ and SEC declined to take enforcement action against a U.S.

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