The number of new Foreign Corrupt Practices Act enforcement actions brought by the Department of Justice and the Securities and Exchange Commission appears to be subsiding, according to recent analysis by the Bribery and Corruption Task Force of law firm Hogan Lovells.

The Task Force offers international clients informed advice in a number of risk areas, from reactive incident response measures to the development of proactive strategies for managing potential exposure through compliance programs.

According to the report, the Justice Department initiated 13 prosecutions, and the SEC brought 12 enforcement actions, in 2012. In comparison, the Justice Department and SEC brought 23 and 25 enforcement actions, respectively, in 2011.  Both agencies brought the most enforcement actions in 2010 (since 2004), with the Justice Department bringing 48, and the SEC bringing 26, respectively.

The analysis links the cooling-off period to the concentration of case resolutions and pending investigations, many of which are industry-wide. Examples of industries experiencing corruption sweeps include healthcare, financial services, movie studios, and defense.

For example, nine enforcement actions occurred in 2012 against seven companies in the healthcare sector. Following a decade-long sweep, the healthcare industry may be entering a phase where the agencies resolve more cases than they initiate. Still, with ongoing investigations against at least 21 companies, the sweep will likely continue to play out for at least the next few years, the analysis stated.

The slower pace of new FCPA enforcement actions will likely continue throughout 2013, but that does not mean that the United States or other regulators around the world are losing interest in anti-corruption enforcement. “As companies expand their business activities into higher risk markets, they must be aware that enforcement will increasingly be on multiple fronts—not just from the United States,” said Peter Spivack, co-leader of Hogan Lovells' Investigations, White Collar, and Fraud practice group.

Another trend observed by the analysis is an increased variation in the use, scope, and duration of compliance monitors. Only four of the 12 corporations charted in 2012 had independent monitors imposed on them; the remaining companies were only required to self-report and self-monitor for the term of the agreement.

Of the four, Japanese trading company Marubeni Corporation and pharmaceutical giant Eli Lilly agreed to retain an independent compliance consultant as part of their settlements. In the remaining two cases, medical device companies Smith & Nephew and Biomet each received a hybrid monitor, meaning that each agreed to a three-year deferred prosecution agreement with an 18-month monitorship, followed by 18 months of self-reporting.

As corporate compliance officers are already well aware, anti-corruption enforcement is not restricted to the U.S. government. The United Kingdom, Brazil, Asia, and the Middle East are just a few of many countries analyzed in the Hogan Lovells report that have made clear in recent months that they will be increasing their enforcement efforts and targeting foreign companies doing business within their borders.

Steve Immelt, global co-head of Hogan Lovells' Litigation, Arbitration and Employment practice, stressed that compliance and cooperation help to prevent prosecution or, at the very least, significantly reduce penalties. “Compliance with the FCPA to satisfy risk management standards is not enough to mitigate risk,” he said. “It is critical to pay proactive attention to compliance and prevention to meet the challenges of corruption and bribery compliance, investigations, and remediation throughout the world.”

Access the “Global Bribery and Corruption Review of 2012” here.