IN THIS ISSUE

Anticorruption Developments

  • SBM Offshore N.V. Agrees to Pay $238 Million to Resolve DOJ FCPA Enforcement Action
  • DOJ Announces New FCPA Corporate Enforcement Policy
  • Two Charged in Alleged Bribery Scheme Involving Chinese Energy Company
  • UK SFO Charges Unaoil Executives With Conspiracy to Make Corrupt Payments in Iraq
  • Canadian Software Company FreeBalance Inc. Debarred by the World Bank for Six Months
  • SEC Enforcement Division Reflections on the FCPA
  • Argentina's Congress Passes AntiBribery Law
  • Kenneth Blanco Named FinCEN Head
  • Charles Cain Named Chief of SEC FCPA Unit
  • U.S. Leaves the Extractive Industries Transparency Initiative

Export Control and Sanctions Enforcement

  • Credit Card Issuer Agrees to $204,277 Settlement in Connection with Alleged Sanctions Violations Relating to Cuba
  • Pilot Air Freight, LLC to Pay $175,000 to Settle Alleged Export Violation
  • OFAC Issues a Finding of Violation to Dominica Maritime Registry, Inc. for Executing a Binding MOU with a Blocked Entity

Export Control, Sanctions and Customs Developments

  • OFAC Publishes Ukraine/Russia related CAATSA Guidance
  • OFAC Issues Ukraine/Russia related General License 1B and Updates Related FAQs
  • Cuba Sanctions: Treasury, State, and Commerce Regulations Implement Trump Administration Cuba Policy
  • OFAC Publishes New Venezuela related FAQs and Designations
  • OFAC Removes Côte d'Ivoire Sanctions Regulations
  • Iran: Following President Trump's "Decertification," New U.S. Sanctions on Iranian Entities and All Eyes on the U.S. Congress
  • Proposed Bill Seeks to Expand Scope of CFIUS Reviews of Foreign Investments

Shipping Groups Sue CBP Challenging Jones Act Letter Rulings

  • EU Imposes Restrictive Measures on Venezuela

Global Investigations Resources

  • Client Alert: Proposed Bill Seeks to Expand Scope of CFIUS Reviews of Foreign Investments
  • Client Alert: Iran: Following President Trump's "Decertification," New U.S. Sanctions on Iranian Entities and All Eyes on the U.S. Congress
  • Writing and Speaking Engagements

ANTICORRUPTION DEVELOPMENTS

SBM Offshore N.V. Agrees to Pay $238 Million to Resolve DOJ FCPA Enforcement Action

On November 29, 2017, SBM Offshore N.V. (SBM), a Netherlands-based company specializing in the manufacture and design of offshore drilling equipment, and its wholly owned subsidiary, SBM Offshore USA Inc. (SBM USA), agreed to pay $238 million to resolve the Department of Justice (DOJ)'s investigation of alleged violations of the antibribery

provisions of the Foreign Corrupt Practices Act (FCPA). SBM entered into a nonprosecution agreement with the DOJ while SBM USA pleaded guilty to one count of conspiring to violate the FCPA.

Specifically, the DOJ alleges, from at least 1996 through 2012, SBM paid more than $180 million in commissions to sales intermediaries and others knowing that a portion of the commissions would be used to bribe foreign officials in Brazil, Angola, Equatorial Guinea, Kazakhstan and Iraq. In addition, the DOJ alleges that SBM marketing and sales staff had discretion to provide items of value, such as jewelry or electronics, to officials with the state-owned oil companies; that officials were regularly provided "thank you" money after successfully awarding projects; that foreign officials were provided travel and "spending money" stipends for sporting events; and that tuition and living expenses were provided to the relatives of foreign officials. The DOJ further alleges the purpose of the payments was to obtain or retain business with state-owned oil companies in the five named countries and that the companies accounted for at least $2.8 billion in revenues for SBM.

Relatedly, earlier this month, on November 10, 2017, the former chief executive officer and the sales and marketing director of SBM pleaded guilty to conspiracy to violate the FCPA, both of whom await sentencing. SBM has already resolved enforcement actions in Brazil and the Netherlands, paying a total of $582 million in resolutions to date.

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