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How to Pay a Bribe: Thinking Like a Criminal to Thwart Bribery Schemes

October 2014
Compendium Roundup


This month, Layne Christensen Company ("Layne Christensen") agreed to pay $5.1 million to the U.S. Securities and Exchange Commission ("SEC") to resolve allegations that the company's subsidiaries in Africa and Australia violated the anti-bribery and books and records provisions of the U.S. Foreign Corrupt Practices Act ("FCPA").  Layne Christensen's subsidiaries allegedly paid nearly $800,000 to foreign officials in Mali, Guinea, and the Democratic Republic of the Congo to reduce its tax liability and avoid associated penalties for delinquent payment.  The company also allegedly made improper payments to local authorities and customs officials to obtain border entry and clearance for its equipment and employees without paying customs duties or penalties for violating immigration laws.  The SEC investigation found that the company allegedly received $3.9 million in unlawful benefits during a five-year period.  The Chief of the SEC Enforcement Division's FCPA Unit cited the fact that Layne Christensen self-reported the violations, cooperated fully with the investigation, and revamped its FCPA program as factors that lessened the amount of the company's penalty.  The U.S. Department of Justice ("DOJ") previously declined to prosecute Layne Christensen on August 15, 2014. 


GlaxoSmithKline PLC ("GlaxoSmithKline"), which paid $490 million to Chinese officials for improper payments last month, began an investigation into allegations of corrupt payments in the United Arab Emirates following a whistleblower complaint.  The company confirmed the investigation following the receipt of an email alleging improper payments, which was purportedly from a GlaxoSmithKline sales manager in the United Arab Emirates.


Meanwhile, another pharmaceutical company, Sanofi SA ("Sanofi") self-reported allegations of improper payments to the SEC and DOJ.  The allegations stemmed from an anonymous whistleblower complaint and relate to possible illegal payments in the Middle East and Africa from 2007 to 2012.



Ebola health epidemic highlights corruption problems in West African countries - As health officials struggle to contain the spread of the recent outbreak in West Africa's Sierra Leone, Guinea and Liberia, some are pointing to corruption as a major exacerbating factor in the outbreak, including reports of shipments of medical supplies delayed in port

for weeks.

SEC defendant challenges agency's powers to bring charges before administrative law judges - The head of a Delaware investment fund is challenging the SEC's powers under Section 929P of the Dodd-Frank Act to impose civil penalties in an administrative proceeding.  The case, which is before the federal district court for the southern district of New York, comes amidst criticism

that the SEC is improperly bypassing federal courts by trying complex cases before its administrative law judges.

UK takes major step to require large companies to disclose efforts taken to avoid supply chain slavery - A proposed new measure going through parliament in the UK would require disclosure of the steps companies have taken to ensure their supply chains are "slavery free."  If passed, the law would be notably broader than President Obama's 2012 executive order , which imposes transparency measures for trafficking and forced labor on federal U.S. contractors.


Second Circuit Court further narrows jurisdictional requirements under Alien Tort Statute - This month, the Second Circuit ruled in Mastafa v. Chevron Corp that the same set of allegations used to satisfy the Supreme Court's
Kiobel ruling (that the case touches and concerns the United States with sufficient force to displace the presumption against extraterritoriality), must also satisfy the jurisdictional test for whether the alleged conduct violated the law of nations where that conduct occurred.  As Sarah Altschuller of Foley Hoag LLP comments
on the firm's blog, the recent Mastafa decision shows just how limiting the Kiobel decision has been for plaintiffs in ATS cases for claims based on conduct occurring abroad.  

Layne Christensen pays $5.1 million to resolve FCPA charges with the SEC - Layne Christensen, the U.S.-based global water management, construction and drilling company, agreed to pay a $5.1 million fine this month to the SEC to resolve allegations that the company's subsidiaries in Africa and Australia violated the anti-bribery and books and records provisions of the FCPA.  The complete Compendium summary for this case may be accessed here.


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Articles Written by TRACE
Featured Resource: The new TRACE Resource Center

Tour the new and improved TRACE Resource Center now!


The TRACE Resource Center contains more than 500 anti-bribery compliance documents as well as local law guidance for almost every country. This expansive knowledge center is the world's largest online database of anti-bribery compliance materials. The Resource Center provides targeted research, best-in-class training materials, compliance reference guides and benchmarking reports that reflect your priorities.

To watch the recorded demonstration of the new Resource Center, please  login to your TRACE Resource Center account and view the video at the bottom of the home page. This recording can also be found under "Anti-Bribery Training Vignettes," a TRACE Member Resource.   

TRACE Anti-Bribery Specialist Accreditation (TASA) 

TASA (TRACE Anti-Bribery Specialist Accreditation) offers the most comprehensive, high-quality and easily accessible anti-bribery education on the market. TASA boasts over 100 online courses taught by a world-renowned faculty of anti-bribery experts. Candidates have access to an extensive library of recorded webinars as well as live webinars, scheduled regularly throughout the year. 

TRACE members now have complimentary access to live TASA webinars. However, access to the online library of recorded courses and the TASA accreditation exam is limited to TASA candidates.

Upcoming live TASA accredited ACI conferences include:

December 1-2, 2014, Singapore

To inquire about discounts and credits, write to  

The Other Anti-Bribery Litigation: Understanding Risk & Exposure Under the False Claims Act
12 November 2014, 12:00 pm-1:15 pm
Faculty: Savaria B. Harris, Partner, DLA Piper 
Deborah R. Meshulam, Partner, Chair, Securities Enforcement Practice, DLA Piper

Effective Anti-Corruption Strategies in the Public Procurement Process: Making Transparency Work
19 November 2014*, 12:00 pm-1:15 pm
Faculty: Max Kaiser, Partner, CAYAD S.C., Mexico
*This course will also be offered in Spanish on 21 November 2014. 

3 December 2014, 12:00-1:15 pm
Faculty: Thomas Firestone, Senior Counsel, Baker & McKenzie LLP
Steven F. Hill, Of Counsel, Baker & McKenzie LLP

10 December 2014, 12:00-1:15 pm
Faculty: Kimberly A. Parker, Partner, Wilmer Cutler Pickering Hale and Dorr

TASA accredited TRACE events: 

Upcoming TRACE events are listed below. TASA candidates may earn up to 6 credits for attending a full two-day TRACE conference and up to 3 credits for attending a TRACE workshop or roundtable.

TRACE Roundtables offer senior-level compliance professionals an opportunity to participate in an advanced discussion on the latest anti-bribery enforcement trends and compliance best practices. Roundtables are led by a TRACE representative and feature special guest speakers. Upcoming roundtables are listed below.  

Melbourne, January 22, 2015
The program is still under development. 
To request an invitation or suggest locations for  upcoming events, please write to

Join TRACE at an upcoming workshop location near you or send your local employees and intermediaries. TRACE anti-bribery workshops address international and local regulatory developments, enforcement trends and compliance best practices. Speakers include TRACE representatives, senior compliance executives and anti-bribery lawyers. Employees and intermediaries of TRACE member companies attend at no charge. 

New Delhi, November 5, 2014

Click here to view the agenda.


Sydney, January 20, 2015

The program is still under development. 

To request an invitation or suggest locations for  upcoming events, please write to
Register Now: 11th Annual TRACE Forum
The 11th Annual TRACE Forum will be held March 25-26, 2015 at the St. Regis in Washington, DC. TRACE members should plan now to attend what has become the premier anti-bribery benchmarking conference. TRACE Corporate Members are now eligble to register for the 11th Annual TRACE Forum by writing to
The Forum program is currently under development. Please visit our Member Activities page for program updates and registration details. To suggest panel topics or speakers, please write to Virna Di Palma at
Recent TRACE Events: Istanbul Workshop
On Thursday, October 30, 2014 in Istanbul, Alexandra Wrage conducted a workshop in collaboration with TRACE's global partner, Etik ve Itibar Dernegi (Ethics and Reputation Society).  The event was held at the beautiful Kocs Museum and attracted more than seventy compliance professionals from Turkish SME's and local affiliates of multinationals.  TRACE thanks its partner Etik ve Itibar Dernegi and Mr. Tayfun Zaman, General Secretary, and his team, whose local efforts made for a very engaging and informative workshop.   



November 11-12, 2014
Hosted by: C5

November 11-13, 2014
Hosted by: IBC Legal
*Eileen Radford, Director, Advisory Services, speaking

Montecasino, Johannesburg
November 17-20, 2014
Hosted by: C5

Washington, DC
November 17-20, 2014

Copenhagen, Denmark
November 25-26, 2014
Hosted by: C5


December 3, 2014

December 4, 2014
Hosted by: IAE
*Alexandra Wrage, TRACE President, speaking


UN Global Compact 10th Principle Anniversary Event 

New York, NY

December 10, 2014

Hosted by: UN Global Compact


Global Anti-Corruption & Compliance in Mining: Toronto 


December 10-12, 2014

Hosted by: Mining Journal

*Alexandra Wrage, TRACE President, speaking 


2nd Anti Corruption Compliance Asia Pacific Summit 2014 

Hong Kong

December 11-12, 2014

Hosted by: Duxes Events

*Michelle Juan, Regional Consultant, speaking


For a complete list of upcoming events, visit the Anti-Corruption Event Calendar on our website. 
International Regulatory Updates


Horn & Co. Law Offices

In Israel, pursuant to Amendment 22 of the Commodities and Services (Control) Law - 1957, commercial intermediaries, retained for military equipment sales by the State of Israel, are no longer required to obtain special permits from the Ministry of Defense to receive a commission. 




In Netherlands, a legislative proposal, which eliminates the distinction between acting in violation of his obligations as an official and acting without violation of his obligations as an official, was adopted by the House of Representatives on 1 July 2014. This is a codification of case law, according to which bribery of an official is always considered to be 'in violation of his obligations.' 

News & Press



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