In Anti-Corruption Report, Geoff Atkins Analyses Albemarle Resolutions

In The News
November 14, 2023

Albemarle Corporation recently reached resolutions with the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) to resolve FCPA offenses related to bribing government officials at state-owned oil refineries around the world.

Litigation & enforcement partner Geoffrey Atkins noted there were continuous red flags of wrongdoing.

“The SEC’s Order highlights the importance of ensuring that your personnel are prepared to issue-spot red flags,” said Geoff. “Companies need to establish systems to ensure this information – all worthy of additional scrutiny – makes its way into the diligence and screening process.”

Geoff added that it is equally important to ensure that controls are in place to monitor the life cycle of a company’s relationship with an intermediary – not just to conduct diligence at the outset, but to identify and address new issues as they arise.

 Regarding the company’s lavish courtesies and travel, Geoff noted, “It can be difficult to detect problematic expenses – such as the lavish entertainment provided by agents in India and Brazil – when they’re incurred by third parties. It’s an important reminder that companies can be on the hook for that conduct even when expenses are covered indirectly.”

Geoff also said it is an all-too-common fact pattern that shows the importance of implementing stringent third-party controls, such as audit rights, where appropriate, and detailed invoicing and documentation requirements.

The Albemarle case reinforces the importance of timely disclosure, cooperation, auditing, and monitoring.

“The government’s more recent compliance guidance has consistently emphasized the importance of maintaining a dynamic compliance program – that is, continually evaluating your program to ensure that it evolves with your business,” said Geoff.