Bribery and corruption are attracting record fines around the world as regulators crack down on rule-flouting corporations.
In the US, the total value of fines imposed for bribery-related offences rose 80% to more than $6bn in 2018, according to Hogan Lovells’ annual Global Bribery and Corruption Outlook, published this week.
In Singapore, fines increased by 25%. In Germany, individual fines of up to $1bn were imposed. Fines imposed by regulators in the UK, Brazil and Hong Kong reduced in value in 2018, but this was in comparison to some of the biggest corporate fines ever imposed in 2017, Hogan Lovells found.
Prison became a grim reality for many company directors in 2018, with enforcement agencies handing out longer sentences. In the US, sentences peaked at an average of five years. In Singapore, individual prison sentences more than tripled from an average of approximately one year in 2017 to four years in 2018.
There were also more settlements, with several jurisdictions following the US lead and introducing deferred prosecution agreements (DPAs). The UK has had four DPAs since introducing them in 2014. France introduced an equivalent agreement in 2016. Germany plans to introduce similar measures in due course.
Top trends to look out for this year, according to the report, include more emphasis on individual accountability and higher fines, and the continuation of DPAs as a means of resolution. Hogan Lovells warns that privilege in internal investigations must be approached with care as it varies by jurisdiction, and businesses need to stay on top of regulations on data as this may affect anti-bribery due diligence in cross-border cases of bribery and corruption.
Crispin Rapinet, corporate crime partner at Hogan Lovells, said: ‘It is clear that regulators outside the US are paying greater attention to bribery and corruption. Record fines highlight the need for continuous ABC compliance across a range of jurisdictions and industries.’
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