Author: Norm Keith

New era of White Collar Crime enforcement in Canada

Recent trends have seen legislative penalties increase, prosecutors cracking down, and more individuals going to jail.  We have entered a new era of white collar crime enforcement in Canada.

In mid-2013, the Corruption Foreign Public Officials Act (CFPOA) was amended by the Federal Government.  It introduced a “new books and records” offence, increased the maximum jail time to 14 years for individuals, and promised to phase out the legality of facilitation payments.  The Royal Canadian Mounted Police (RCMP) was assigned the exclusive jurisdiction over investigation and laying charges under the CFPOA and given an enhanced increase in their mandate to investigate and prosecute more corporations and individuals, which it is doing.

Following this, the RCMP prosecuted Nazir Karigar, a Canadian-Indian business man, under the CFPOA. At his lengthy trial it was never proven that he gave a bribe to an Air India (foreign) official, as alleged; the Crown did prove, to the court’s satisfaction, that he intended to pay a bribe to secure business with Air India for an American company. That was enough to convict and send him inside for 3 years.

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Enforcement activity by U.S. FCPA Regulators

There were three FCPA enforcement actions brought or announced in August 2015.

BNY Mellon became the first – of what is expected to be several financial services companies – to pay millions ($14.8 million to be precise) in an SEC enforcement action based on its alleged internship practices.  This flagged various issues to consider from the enforcement action including that it was the first SEC FCPA enforcement ever not to include allegations or findings of books and records violations.  This recent BNY Mellon enforcement action highlight why the meaning of “foreign official” matters.

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