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Frank-Dodd Act

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Dodd-Frank Act – Americans mean business

When General Electric Company agreed last August to pay US$23.4 million to settle charges laid by the United States Securities and Exchange Commission (SEC) for its involvement in a US$3.6 million kickback scheme with Iraqi government agencies to win contracts to supply medical and water purification equipment, it was the latest of an impressive long list of multinationals that paid the price of Washington’s newfound resolve to crack down on corporate bribery.

The Americans now mean business. Largely dormant since becoming law in 1977, the U.S. Department of Justice (DOJ) and the SEC have over the past two years vigorously enforced the Foreign Corrupt Practices Act (FCPA), going so far as to launch sting operations while levying penalties unimaginable a couple of years ago.

The Dodd-Frank Act provides the SEC with more enforcement tools and wider jurisdiction and most notably introduces an eye-catching whistleblower bounty -- all of which should cause concern for Canadian companies even though the full impact of the new law has yet to be determined.…

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