Statement On Rules Governing The Disclosure Of Payments By Resource Extraction Issuers, SEC Commissioner Allison Herren Lee, Dec. 16, 2020 Date
16/12/2020
The statutory mandate under which we act today is fundamentally about transparency. Enhancing transparency to promote accountability and fight corruption. Under Section 1504 of the Dodd-Frank Act, Congress tasked us with crafting rules that would require issuers in the extractive industries to disclose their payments to foreign governments so those governments can be held accountable for the money flowing in.[1] In other words, empowering citizens through information. That goal is in keeping with the United States’ long history as a leader in international efforts to combat corruption. And it is in keeping with the SEC’s role in anti-corruption efforts: enforcing the Foreign Corrupt Practices Act, ensuring compliance with anti-money laundering rules, and participating in the important work of the Financial Action Task
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In Short
The Situation: Companies in Latin America and elsewhere, whether or not they have offices or personnel in the United States, frequently engage in transactions involving the U.S. banking system. In doing so, they can become subject to investigation and prosecution for the violation of certain U.S. criminal laws, including laws prohibiting fraud and bribery.
The Result: U.S. prosecutors are ready and eager to investigate and prosecute foreign targets. The recent case involving Salvador Cienfuegos Zepeda is the latest high-profile example, but developments in the FIFA corruption case demonstrate the extensive reach of U.S. law.
Beam Suntory Inc. agreed to pay a penalty of $19.6 million for bribery and other violations of the Foreign Corrupt Practices Act (FCPA).
[1] The company had paid bribes to officials in India and then went to great lengths to conceal the bribes and foil investigations into the FCPA violations. The agreement with the U.S. Department of Justice (DOJ) also includes a deferred prosecution agreement that puts the DOJ in an oversight role over changes to the company’s internal ethics and compliance controls.
[2]
The company had cooperated with the Securities and Exchange Commission on a similar investigation, but the DOJ noted no such cooperation with its own investigation:
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