The U.S. SEC has now adopted a revised final rule designed to
award whistleblowers who voluntarily provide original information
to the SEC regarding violations of securities
laws where the enforcement action leads to monetary
sanctions totalling more than $1 million. The rules also seek to
support internal compliance programs by making a whistleblower
eligible for an award if the information is reported internally but
results in the company informing the SEC about the
violations. As we discussed in November 2010,
the SEC released a draft proposal last year, and the
final rule reflects changes made in response to public comments on
The provisions may be of particular interest to Canadian
companies since, while foreign officials and employees
of state-owned enterprises are excluded from
the whistle-blower program, employees of foreign companies
could be eligible for rewards.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Canada’s foreign anti-bribery law, the Corruption of Foreign Public Officials Act (CFPOA), makes it a serious criminal offence for Canadians and Canadian companies to bribe foreign government officials.
Bill C-21, the "Standing Up for Victims of White Collar Crime Act", received Royal Assent just prior to May’s federal election. The Act introduces new sentencing provisions related to fraud, creating a two-year minimum sentence for fraud over C$1-million among other important amendments.
As we start the New Year, Canadian companies are well-advised to take stock of recent developments in anti-corruption law and assess where they stand in terms of implementing appropriate internal controls and due diligence policies to ensure compliance with Canada’s Corruption of Foreign Public Officials Act (CFPOA)1 and other potentially applicable anti-bribery regimes, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act.
Ottawa businessman Nazir Karigar has been convicted of agreeing to offer bribes to public officials in India in order to obtain preferential treatment for a bid submitted by Cryptometrics to supply facial recognition software and related equipment to Air India.
On August 15, 2013, Nazir Karigar was found guilty of offering or agreeing to bribe foreign officials, in contravention of the Corruption of Foreign Public Officials Act (CFPOA). A hearing date to determine Mr. Karigar’s sentence has not yet been set.