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February 2015
Compendium Roundup


International anti-bribery enforcement picked up in February, with several countries leveling anti-bribery charges on a range of companies.

The Royal Canadian Mounted Police's (RCMP) National Division charged SNC Lavalin Group Inc., its division SNC-Lavalin Construction Inc. and its subsidiary SNC-Lavalin International Inc. with violating the Corruption of Foreign Public Officials Act (CFPOA). According to the allegations, the company paid bribes to Libyan officials and committed fraud in relation to construction projects in Libya, including the Great Man Made River Project.  SNC Lavalin, which is headquartered in Montreal, has been battling bribery allegations over the past few years in several countries, including Switzerland, Bangladesh and India.  The company has vowed that it would fight the allegations and enter a non-guilty plea. 

In another international anti-bribery development, the U.K. Serious Fraud Office (SFO) had its first conviction of a corporation for foreign bribery offense, after a contested trial.  The SFO charged two employees of a U.K.-based printing company, Smith and Ouzman Ltd., for allegedly bribing officials in Kenya and Mauritania to win contract awards in those countries.  The company's chairman, Christopher John Smith, was sentenced to 18 months' imprisonment, and the company's sales and marketing director, Nicholas Charles Smith, was sentenced to three years' imprisonment. The company was also convicted and will be sentenced at a later date. 

On the U.S. front, Goodyear Tire & Rubber Company ("Goodyear") settled FCPA charges with the U.S. Securities & Exchange Commission (SEC) for allegedly bribing officials in Kenya and Angola to land tire sales in those countries. Goodyear agreed to pay more than $16 million to settle the SEC's charges.  Goodyear also reported a declination from the U.S. Department of Justice (DOJ).  In addition, the DOJ issued a declination for Eli Lilly and Company for FCPA charges related to certain activities of Lilly subsidiaries in Brazil, China, Poland, and Russia from 1994 through 2009. Lilly had previously settled FCPA charges for those activities with the SEC.  


Visit the TRACE Compendium to view the complete entries. 

4 Ways to Fight Corruption in Government Procurement

24 February 2015

Alexandra Wrage, Corporate Counsel 

February 2015 Poll: What was this month's biggest storyline?


We had many new developments this month in the world of anti-bribery compliance.  Read the summaries below and then vote for which one you think is most deserving of the top spot:

  1. Canadian authorities charge SNC Lavalin with paying bribes in Libya: On February 19th, the Royal Canadian Mounted Police (RCMP) charged SNC Lavalin Group Inc. and two of its subsidiaries with violating the Corruption of Foreign Public Officials Act (CFPOA).  The charges relate to CAN$47,689,868 (US$37,946,982) in alleged bribe payments made to Libyan officials between 2001 and 2013. If found guilty, the company faces criminal penalties and possible debarment from Canadian government contracts for a period of ten years. 
  2. Problems for the KPK in Indonesia: Indonesia's Corruption Eradication Commission, known as the KPK, is in a standoff with the country's police force and President Joko Widodo.  President Widodo, who is charged with selecting the country's national police chief, was rebuffed by the KPK after his first selection, Budi Gunawan, was tied to large scale bribery allegations. The KPK has also voiced concerns over Mr. Widodo's second pick, Badrodin Haiti, also due to corruption.  For its part, Indonesian police have named the head of the KPK, Abraham Samad, as a suspect in their own ongoing corruption investigation, and Mr. Widodo has since suspended Mr. Samad and one of his deputies at the KPK. This has prompted street demonstrations in Jakarta amidst anxiety that the government is looking to dismantle the commission.
  3. 11th Circuit holds that foreign officials can be prosecuted for laundering bribes:  Twenty-four years ago, the United States' Fifth Circuit Court of Appeals held that foreign officials may not be prosecuted for accepting bribes pursuant to the Foreign Corrupt Practices Act (FCPA) (See U.S. v. Castle, 925 F.2d 831 (1991)). That's because, as the court explained, Congress never intended the FCPA to cover foreign officials.  This month, however, the Eleventh Circuit Court held that foreign officials may be prosecuted for accepting bribes pursuant to the U.S. Money Laundering Control Act when they launder the proceeds of bribes through U.S. financial institutions (see U.S.  v. Duperval (11th Cir. Feb. 9, 2015)). Duperval, a Director of International Relations for Telecommunications at D'Haiti S.A.M., was found guilty by a Miami jury in 2012 and sentenced to 9 years imprisonment.
  4. SEC settles with Goodyear for $16.2 million over African bribes: Between 2007 and 2011, Goodyear subsidiaries in Kenya and Angola made over $3.2 million in illicit payments, according to the SEC's published settlement order.  The Securities and Exchange Commission (SEC) noted Goodyear's substantial remedial efforts and voluntary disclosure as mitigating factors, and the company's penalties were limited to disgorgement and prejudgment interest.  The DOJ has reportedly declined to bring any further actions against the company. 
  5. Corruption scandal at Brazil's Petrobras ensnaring increasing number of companies: Brazil's largest state-controlled company, Petróleo Brasileiro SA (Petrobras), is ensnared in an expansive federal investigation regarding kickbacks from a wide array of suppliers and contractors that were reportedly funneled to government officials.  Among the list of suppliers caught up in the scandal is UK-based Rolls Royce, which is said to have paid at least $200,000 in bribes to an official at Petrobras in order win a contract.
  6.  DOJ declines to prosecute Eli Lilly for bribery: The Indiana-based global pharmaceutical company settled civil FCPA charges with the SEC in 2012 for $29 million related to bribery violations in Russia, China, Brazil and Poland.  In the company's Form 10-K (Annual Report) filed with the SEC on February 19, Eli Lilly said that the DOJ has closed its investigation into the matter.  

Vote now on the TRACEblog 

TRACE Online Training Updates: Federal Acquisition Regulatory Compliance & Human Trafficking 

As of March 2nd, the amended Federal Acquisition Regulatory rule goes into effect, which is intended to significantly strengthen protections against human trafficking in connection with government contracts. The new rule implementing the 2012 Executive Order 13627, "Strengthening Protections Against Trafficking in Persons in Federal Contracts" requires government contractors to certify that they have a compliance program if (a) the contract is for supplies (other than commercially available off-the-shelf products) that are to be acquired outside the US or services to be performed outside the US, and (b) the contract value exceeds $500,000. As a minimum, applicable contractors must train their employees about the government's policy prohibiting trafficking-related activities and prevent third parties from engaging in trafficking. Applicable contractors must also conduct due diligence on subcontractors and agents regarding their involvement in such activities.

As a member benefit, TRACE provides free online training on how to avoid trafficked labor. This training module helps companies train employees and third parties to:
  • Avoid business and reputational risk due to trafficked labor in the supply chain and other areas of business
  • Recognize and communicate awareness of human trafficking risks relevant to specific types of business
  • Comply with trafficking-related statutes and regulations
  • Help your business develop a reputational and morale-related benefit from a strong anti-trafficking compliance program
  • Formulate a plan to identify and avoid trafficked labor in your business
The Avoiding Trafficked Labor module includes real-life scenarios to teach appropriate conduct in a variety of situations. It is available in 14 languages: Arabic, Chinese, English, French, German, Greek, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish and Turkish. 

To add the Avoiding Trafficked Labor module to your training platform or to learn more about TRACE Online Training options, please write to
TRACE Anti-Bribery Specialist Accreditation (TASA)

TRACE Anti-Bribery Specialist Accreditation (TASA) webinars are now available to TRACE members at no additional charge. Register for a live webinar or request access to any recorded webinar in our online library. 


For more information, contact Interested in taking the TASA accreditation exam? Enroll in TASA today and become TASA accredited by the end of 2015.  


4 March 2015
Michelle de Kluyver, Counsel, Allen & Overy LLP

18 March 2015
Thiago Jabor Pinheiro, Attorney, Mattos Muriel Kestener Advogados

To inquire about discounts and credits, write to 
TRACE Roundtables & Workshops

Upcoming 2015 roundtables and workshops will be announced soon. Please check the TRACE Member Activities page for updates. 

11th Annual TRACE Forum
The 11th Annual TRACE Forum will be held March 25-26, 2015 at the St. Regis Hotel in Washington, DC. At this time, the event is at capacity.

For questions, please write to

Hosted by: Inside Intelligence
March 23-24
Houston, TX
*Severin Wirz, Director, Advisory Services, speaking

Hosted by: American Conference Institute 
March 24 - March 25
Moscow, Russia
Hosted by: American Conference Institute 
March 24 - March 26
Mexico City, Mexico 
*A TRACE Representative will be attending

Hosted by: SCCE
March 29 - April 1
London, UK
*Alexandra Wrage, TRACE President, speaking


Hosted by: Momentum
April 21-22, 2015
McLean, VA
*Eileen Radford, Director, Member Services and Advocacy, speaking

Hosted by: ACI
April 27-28, 2014
New York, New York


For a complete list of upcoming events, visit the Upcoming Events Calendar on our website. 
International Regulatory Updates

New Partner Firm:

38 Volodymyrska St.
Kyiv, 01030
TEL: +380 (44) 492 8282
FAX: +380 (44) 492 8272
Contact: Serhii Sviriba (Ukraine) /Andrew Mac (DC, USA)
News & Press

1 February 2015
CBA National Magazine, Agnese Smith

4 February 2015



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