Normally, when the Department of Justice launches an investigation against a company for potential violations of the Foreign Corrupt Practices Act, an enforcement action isn’t far behind.

That wasn’t the case for Image Sensing Systems.

The company, which develops video image processing products for use in traffic management systems, disclosed in a statement this week that the Justice Department and the Securities and Exchange Commission opted not to bring an enforcement action against it over violations of the FCPA. Specifically, the government cited the company’s voluntary disclosure, thorough investigation, cooperation, and voluntary enhancements to its compliance program.  

“From the very beginning, we have voluntarily cooperated with the authorities and have worked diligently to implement measures to enhance our internal controls and compliance efforts,” Kris Tufto, chief executive officer of Image Sensing Systems, said in a prepared statement. “We understand that those efforts have been recognized and that the resolution of the investigation reflects this cooperation.”

Image Sensing Systems learned in 2013 that Polish authorities were conducting an investigation into alleged violations of Polish law by two employees of Image Sensing Systems Europe Limited, its Polish subsidiary, who had been charged with criminal violations of certain laws related to a project in Poland. A special subcommittee of the audit committee of the board of directors immediately engaged outside counsel to conduct an internal investigation.  

Image Sensing Systems said it voluntarily disclosed the matter to the Justice Department and the SEC, “and it has cooperated fully with those agencies in connection with their review.” The tech company was represented in the investigation by the law firms of Greene Espel and Dentons Warsaw, with the assistance of forensic accounting firm FTI Consulting.

Image Sensing Systems isn’t the first company to be exonerated by the government for potential FCPA violations. As Compliance Week previously reported, Morgan Stanley similarly was able to avoid an FCPA prosecution in 2012 as a result of its robust compliance program.

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