Fcpa Compliance Report

Today, I conclude my review of FCPA enforcement actions that involved the corporate hiring function. From these three cases I have considered, it is clear that HR must be involved in compliance and if HR hiring controls are over-ridden there must be an appropriate consideration of the risk management issues. In November 2016, JP Morgan Chase (JPM) and its subsidiary, JPMorgan Securities (Asia Pacific) Limited (JPM-APAC) resolved its FCPA matter, obtaining a NPA from the DOJ with a penalty of $72MM, agreeing to a Cease and Desist Order (“Order”) from the SEC, with a penalty consisting of profit disgorgement and interest of $135MM, and reaching an agreement with the Federal Reserve Bank (Fed) for a Consent Cease and Desist Order (Fed Order) to put in place a best practices compliance program and pay a penalty of $61MM. The total fines and penalties paid by JPM for its violation of the FCPA was $268 MM. The conduct involved JPM-APAC’s Client Referral Program, named the “Sons & Daughters Program” (Sons and Daugh