Rethinking Risk: Insights from FCPA Houston 2025
Rethinking Risk: Insights from FCPA Houston 2025
Top compliance professionals, legal experts, and enforcement officials gathered to explore the evolving anti-corruption landscape during ACI’s 18th Forum on the Foreign Corrupt Practices Act (FCPA) in Houston. Conversations focused on DOJ enforcement trends, AI solutions, and navigating emerging risks—but recent developments have already added new layers of complexity.
Shortly after the conference, an executive order pausing FCPA enforcement was announced. While this wasn’t on the agenda, it reinforces a key theme of the conference: Compliance requires proactive formulas for managing risk in unpredictable environments.
Shifting Enforcement Priorities
Initiatives such as the M&A Safe Harbor and DOJ Whistleblower Pilot Program highlight the DOJ’s evolving stance on corporate liability. Regardless of enforcement shifts, DOJ guidance continues to push firms to proactively investigate and disclose issues quickly, as seen in the prompt reporting language of the DOJ Whistleblower Pilot Program.
Another shift is the DOJ’s use of advanced technology to detect misconduct, and companies that keep pace by enhancing their own technology will be better positioned when dealing with the government. Waiting for issues to surface is no longer an option, as modern technology offers new approaches to compliance, investigations, and early case assessment.
Key Takeaways:
- Be Prompt and Proactive: Priorities are moving from reactive enforcement to proactive protection.
- Self-Reporting is Strategic: Disclosing issues early reduces risk and can lead to more favorable treatment.
- Leverage Technology: Companies that invest in technology will be better equipped to navigate a shifting landscape and government engagements.
Evolving Challenges in Global Operations
Managing third-party risks, international regulations, and geopolitical tensions becomes more complex as businesses expand globally. However, global enforcement agencies are working more closely together, prompting organizations to adopt cross-functional strategies and build strong cultures of compliance.
The growing overlap between anti-corruption laws, sanctions, and trade regulations provides businesses an opportunity to align compliance efforts across departments for more effective risk management. This reinforces the value of compliance and business leaders working together. Companies that continuously improve their processes will keep pace with developing regulations.
Key Takeaways:
- Remain Diligent: Due diligence and managing third-party risk require continuous monitoring and are not one-time tasks.
- Tailor Strategies: High-risk and emerging markets present unique challenges that require different solutions and technology.
- Align Goals: Compliance and business leaders must work together to drive better results.
Advancements in AI
Artificial intelligence is revolutionizing compliance programs by introducing new ways to monitor risk with real-time data, accelerate internal investigations, support compliance efforts, and more. However, there was strong agreement that compliance leaders need to understand the advantages and challenges of the tools they use.
While the US still lacks formal regulations around AI, ABA Formal Opinion 512 highlights the importance of leaders having a reasonable understanding of the technology they use. This responsibility will only grow as AI adoption expands.
Key Takeaways:
- Find the Right Fit: AI solutions should align with regulatory expectations and the company’s risk profile.
- Understand AI: AI regulations are still evolving but companies need to stay informed on the capabilities and limitations of the tools they use.
- Adopt Strategically: While emerging technology offers massive potential, a strong process is key to success.
The Compliance Culture Shift
Emphasis on culture remained a constant theme, with growing pressure for transparency and corporate responsibility. To address these challenges, organizations are fostering a culture of accountability to ensure everyone takes ownership, as this is not confined to a single department.
Organizations that take a proactive approach and create strong cultures will be best positioned to handle shifting enforcement. This is no small undertaking and requires a deep understanding of operations and relationships, reminding us that compliance goes beyond checklists.
Key Takeaways:
- Build Trust: Compliance isn’t just about having policies in place—it’s about building trust.
- Act Fast: Leverage technology and proactive approaches to effectively anticipate and address problems before they escalate.
- Stay Prepared: Compliance teams must stay informed on evolving policies to manage risks.
Conclusion: Adapting to a Shifting Compliance Landscape
As the compliance and regulatory landscape continues to evolve, ACI’s FCPA Houston Conference reinforced the importance of proactive approaches to manage risk and stay ahead of enforcement trends. With a shift in FCPA enforcement, companies will be faced with navigating new challenges.
Embracing proactive risk management, strategic use of technology, and cultures of accountability will position companies for long-term success in an increasingly complex environment. Now is not the time to hit pause on compliance—it’s the perfect moment to get organized, take control, and stay ahead.