ABB Settles With Multiple Authorities for Its Third FCPA Strike
Anti-Corruption Report
Anti-Corruption Report
James Koukios spoke to the Anti-Corruption Report about the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) announcing that Swiss-based global technology company ABB Ltd. will pay more than $315 million and comply with a three-year deferred prosecution agreement to resolve investigations into violations of the U.S. Foreign Corrupt Practices Act (FCPA).
“The ABB resolution is a stark reminder of a critical FCPA red flag: third parties proposed by government officials,” James said. “ABB appears to have had relatively strong due diligence procedures in place – and, according to the SEC order, a supply chain manager flagged one of the subcontractors as potentially inappropriate – but the resolution suggests that the company overrode these procedures and internal warnings due to pressure to please the customer and win the business.”
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Practices