FCPA Compliance Monitorships

June 10, 2011

Compliance monitorships are frequently a condition of settling corporate criminal prosecutions with federal authorities. In particular, the U.S. government has used monitorships extensively as a tool in enforcing the U.S. Foreign Corrupt Practices Act (“FCPA”). From 2004 to 2010, more than 40% of all companies that resolved an FCPA investigation with the U.S. Department of Justice (“DOJ”) or Securities and Exchange Commission (“SEC”) through a plea agreement or settlement agreed to retain an independent compliance monitor as a condition of that agreement.

Gibson Dunn has had the privilege of conducting three FCPA monitorships, with F. Joseph Warin appointed as Monitor for Alliance One International, Inc., and Statoil ASA, and as U.S. Counsel to the Siemens AG Monitor. Leveraging the Firm’s unique experience in this area, Mr. Warin and his colleagues, Michael Diamant and Veronica Root, published the first comprehensive law review article on the subject: “Somebody’s Watching Me: FCPA Monitorships and How They Can Work Better.” The article, which the University of Pennsylvania Journal of Business Law recently published, examines the phenomenon of FCPA compliance monitorships, describes their most common terms, and offers practical advice to corporations and compliance monitors themselves about how the process can work better.

The article has already received media attention, with the FCPA Compliance and Ethics Blog calling it “invaluable” and “a ‘must read’ for any attorney working in the Foreign Corrupt Practices Act (FCPA) arena, whether in private practice or in-house counsel.” The FCPA Professor blog also recommended it to anyone who has “ever have had a question about monitors in the FCPA enforcement context.” And the website Main Justice conducted an in-depth interview on the article with Mr. Diamant.

Gibson Dunn’s unparalleled experience with FCPA monitorships has helped it develop one of the nation’s premier anti-corruption compliance practices. By working as the monitor inside major multinational corporations to devise and implement better policies, procedures, and practices in all relevant aspects of the organization, the Firm’s anti-bribery compliance group has developed a comprehensive and integrated view of corporate compliance. This allows it to advise clients more effectively on the full range of relevant internal anti-bribery controls, including whistleblower hotlines, codes of conduct, transaction approval tools, procurement systems, employee training, and investigative procedures. Gibson Dunn also frequently applies the lessons learned through its extensive monitorship work when helping clients perform corruption risks assessments and compliance program evaluations.

Reprinted with permission from the University of Pennsylvania Journal of Business Law, Vol. 13, No. 2 (2011), Copyright © 2011 University of Pennsylvania Law School.

Gibson, Dunn & Crutcher LLP 

Gibson, Dunn & Crutcher’s lawyers are available to assist in addressing any questions you may have regarding these issues.  Please contact the Gibson Dunn attorney with whom you work, or any of the following:

Washington, D.C.
F. Joseph Warin (202-887-3609, [email protected])  
Daniel J. Plaine (202-955-8286, [email protected])
Judith A. Lee (202-887-3591, [email protected])
David P. Burns (202-887-3786, [email protected])
David Debold (202-955-8551, [email protected])
Brian C. Baldrate (202-887-3717, [email protected])  
Michael S. Diamant (202-887-3604, [email protected])
John W.F. Chesley (202-887-3788, [email protected])
Patrick F. Speice, Jr. (202-887-3776,[email protected])
Elizabeth H. Goergen (202-887-3623, [email protected])

New York
Joel M. Cohen (212-351-2664, [email protected])
Lee G. Dunst
(212-351-3824, [email protected])
Mark A. Kirsch (212-351-2662, [email protected])
Jim Walden (212-351-2300, [email protected])
Alexander H. Southwell (212-351-3981, [email protected])
Lawrence J. Zweifach (212-351-2625, [email protected])
Adam P. Wolf (212-351-3956, [email protected])

Evan S. Tilton (214-698-3156, [email protected])

Robert C. Blume (303-298-5758, [email protected])
Jessica H. Sanderson (303-298-5928, [email protected])
Laura M. Sturges (303-298-5929, [email protected])

Los Angeles
Debra Wong Yang (213-229-7472, [email protected]),
the former United States Attorney for the Central District of California,

Michael M. Farhang (213-229-7005, [email protected])
Douglas M. Fuchs (213-229-7605, [email protected])
Marcellus A. McRae (213-229-7675, [email protected])

Orange County
Nicola T. Hanna (949-451-4270, [email protected])
Eric Raines (949-451-4050, [email protected])
Bryan E. Smith (949-451-4055, [email protected])

San Francisco
Winston Y. Chan (415-393-8362, [email protected])

Patrick Doris (+44 20 7071 4276, [email protected])
Charlie Falconer (+44 20 7071 4270, [email protected])
Philip Rocher (+44 20 7071 4202, [email protected])
Barbara Davidson (+44 20 7071 4216, [email protected])
Tim Vogel (+44 20 7071 4271, [email protected])

Benoît Fleury (+33 1 56 43 13 00, [email protected])  
Jean-Philippe Robé (+33 1 56 43 13 00, [email protected])

Benno Schwarz (+49 89 189 33-110, [email protected])
Michael Walther (+49 89 189 33-180, [email protected])
Mark Zimmer
(+49 89 189 33-130, [email protected])

Hong Kong
Kelly Austin (+852 2214 3788, [email protected])
Kate Yin (+852 2214 3988, [email protected]

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