How FCA, FCPA Risks Are Shifting As Feds Pull Back

· WOWERI

As the federal government pulls back on white-collar enforcement, companies should expect FCA risk to grow and FCPA scrutiny to shift towards foreign prosecutors. This may lead to an increase in private whistleblower suits and attention from foreign authorities.

Introduction

The US federal government is pulling back on white-collar enforcement, and companies should expect False Claims Act (FCA) risk to grow and Foreign Corrupt Practices Act (FCPA) scrutiny to shift towards foreign prosecutors. This may lead to an increase in private whistleblower suits and attention from foreign authorities.

FCA Risk Growth

The FCA is a law that prohibits companies from presenting false claims to the federal government. The decrease in federal enforcement may lead to an increase in private FCA suits.

FCPA Scrutiny Shift

The FCPA is a law that prohibits companies from bribing foreign officials. The shift in FCPA scrutiny may lead to increased attention from foreign prosecutors.

What Companies Should Do

Companies should be prepared for the growth of FCA risk and the shift in FCPA scrutiny. This may include:

  • Strengthening internal controls and procedures
  • Training employees on FCA and FCPA issues
  • Monitoring company activity for potential risks

Conclusion

The US federal government is pulling back on white-collar enforcement, and companies should expect FCA risk to grow and FCPA scrutiny to shift. This may lead to an increase in private whistleblower suits and attention from foreign authorities. Companies should be prepared and take steps to minimize potential risks.

What to do next

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Source: law360.com

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