11 Jun 2014 REDUCING THE COST OF FCPA MONITORINGBank and Securities Fraud | Austin Burke
FCPA settlements with the SEC and the DOJ increasingly require an offending company to allow an independent monitor to keep watch over internal compliance efforts for a specified period of time. Regulators admittedly see monitoring as a way to reduce recidivism of corporate crime and to protect the integrity of the market place. As many companies have come to learn though, this process can prove both intrusive and expensive. Indeed, at least one former DOJ official has acknowledged that fees for “runaway monitors” can exceed $50 million. There are, however, ways for companies to structure their monitoring relationships so as to minimize disruption and contain costs. Negotiate a Cost-Effective Settlement Agreement The settlement agreement is the guiding text for any effective monitorship….