With 2024 now behind us, we would like to take this opportunity to review key developments in the fields of Anti-Bribery and Anti-Corruption compliance, both in Israel and globally. We have compiled a review of notable regulatory, policy, and guidance updates, publications, and enforcement actions from 2024. The update also touches on significant developments that occurred in the beginning of 2025. These developments in the fields of Anti-Bribery and Anti-Corruption compliance may influence enforcement trends and compliance requirements for companies in Israel and worldwide.
- Regulatory, Policy, and Guidance Updates: Global | Israel
- Notable Enforcement Events – 2024: Israel | USA
Regulatory, Policy, and Guidance Updates
Global
U.S. DOJ Launches Voluntary Self-Disclosure Pilot Program for Individuals
On April 15, 2024, the U.S. Department of Justice (DOJ) launched a pilot program encouraging the voluntary disclosure of original information about corporate-related criminal misconduct by individual participants. This program incentivizes individuals to report financial crimes, including FCPA violations, by offering non-prosecution agreements (NPAs) under specific conditions. To qualify, individuals must voluntarily self-disclose actionable information, including with regard to their own criminal misconduct, fully cooperate with investigations, and remediate financial harm by forfeiting profits, paying restitution, or compensating victims. The program aims to reinforce the DOJ’s focus on rewarding voluntary disclosures made in good faith and implementing effective internal compliance measures.
U.S. Updates New Foreign Extortion Prevention Act (FEPA)
In 2023, the U.S. enacted the Foreign Extortion Prevention Act (FEPA), aimed at holding foreign officials responsible for soliciting and/or receiving bribes from U.S. and certain U.S.-related persons; complementing the FCPA which placed responsibility on those providing the foreign bribes. In July 2024, the U.S. issued a number of corrections to the law, largely addressing technical and clarity issues with the law. However, it is of note that one correction also narrows the extraterritorial nature of the law, restricting its jurisdiction to foreign officials or individuals acting on behalf of foreign officials soliciting or accepting bribes while in the U.S., or foreign officials, wherever they are located, accepting or soliciting a bribe from certain U.S. persons or individuals acting on behalf of certain U.S. persons.
U.S. DOJ Launches Corporate Whistleblower Awards Pilot Program
On August 1, 2024, the U.S. Department of Justice (DOJ) announced the launch of the Corporate Whistleblower Awards Pilot Program, modeled on other successful whistleblower programs, designed to incentivize individuals to report corporate criminal misconduct not currently addressed. The program offers financial awards as a percentage of net proceeds forfeited to whistleblowers who provide original information leading to forfeitures exceeding $1,000,000 in net proceeds related to corporate crime, including certain violations of the FCPA. The program is structured to promote a company’s internal compliance mechanisms, including by incentivizing whistleblowers to first report misconduct internally. In parallel, the DOJ temporarily amended its Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP), granting credit to a company that self-discloses within 120 days of the internal whistleblower report and complies with other voluntary self-disclosure requirements to retain the presumption of declination with disgorgement. This program encourages the development and increase of compliance measures as whistleblower-driven investigations are likely to grow under this program.
U.S. DOJ Updates Evaluation of Corporate Compliance Programs Document
On September 23, 2024, the U.S. Department of Justice (DOJ) announced updates to the Evaluation of Corporate Compliance Programs (ECCP) in three main areas. The ECCP is a document meant to assist prosecutors in their determinations of the efficacy of a company’s compliance program was effective, including for FCPA purposes. First, the updated ECCP asks prosecutors to consider whether companies have properly conducted risk assessments to evaluate, identify, and mitigate risks of violations related to the misuse of new technologies. The ECCP considers, among other things, whether companies, in their risk reviews and audits, have considered how new technologies may affect compliance requirements, internal governance of the use of new technologies, strategies to curb potential negative or unintended consequences of the use of technologies, controls to monitor and ensure new technologies reliability, accountability and training over the use of new technologies. Second, following the whistleblower program mentioned above, the changes consider a company’s commitment to whistleblower protection and ensuring individuals know how to report suspected misconduct, including through policies and training. Lastly, the updated ECCP considers whether compliance programs have access to relevant data and resources available to compliance and risk management personnel, considering whether companies “are putting the same resources and technology into gathering and leveraging data for compliance purposes that they are using in their business”.
U.S. Executive Order Pausing DOJ Foreign Corrupt Practices Act (FCPA) Enforcement
On February 10, 2025, the U.S. placed a temporary freeze on new U.S. Department of Justice (DOJ) investigations and enforcement actions under the Foreign Corrupt Practices Act (FCPA) for a review period of at least 180 days. The FCPA prohibits U.S. persons and certain foreign persons, such as foreign companies publicly traded in the U.S., from engaging in corrupt business practices with foreign government officials as a means of securing any improper advantage in securing or retaining business. The executive order pausing enforcement cited concerns that FCPA enforcement has become overly expansive, hindering U.S. economic competitiveness and foreign policy objectives, as U.S. companies are prohibited from practices widespread among their foreign competitors.
During this review period, the U.S. Attorney General is directed to assess existing FCPA cases, update enforcement policies, and align them with priorities of promoting U.S. business interests abroad and the efficient use of federal resources. In parallel, the U.S. Attorney General published a memorandum on February 5, 2025, citing a shift in FCPA enforcement strategy to focus on foreign bribery directly aiding cartels’ operations and Transnational Criminal Organizations (TCOs).
It is not clear how the pause will impact currently ongoing investigations or enforcement actions, and any violations during the pause may still be the subject of future enforcement actions. As the U.S. Securities and Exchange Commission (SEC) and the DOJ are jointly responsible for enforcing the FCPA, as it is currently set, the freeze only affects DOJ enforcement of the FCPA. It does not directly address SEC FCPA enforcement, which may still bring civil enforcement actions against certain persons for FCPA violations.
EU Advancing New Anti-Corruption Legislative Package
In 2023, the European Commission raised a new anti-corruption package aimed at introducing new criminal offenses and sanctions relating to corruption and unifying a fragmented EU legislative framework regarding corruption. In 2024, the proposal progressed in the EU’s legislative process; however, it has not yet reached the stage of adoption.
Transparency International Publishes 2024 Corruption Perceptions Index
On February 11, 2025, the organization Transparency International published its annual Corruption Perception Index for 2024. The index rates the perceived levels of public sector corruption in some 180 countries and is considered a leading measure for assessing corruption risk in various countries. Israel was given a score of 64/100, a two-point improvement from last year, and advanced three spots over the previous year to 30th out of 180 countries rated.
Rise in “Failure to Prevent” Anti-Bribery Laws
In 2024, Australia and South Africa legislated “failure to prevent” anti-bribery laws. The laws not only prohibit bribery but also list as an offense failing to prevent bribery. The laws bear similarity to the 2010 UK Bribery Act, which has a similar failure to prevent bribery offense. The laws highlight the UK Bribery Act as a rising international standard, and the importance of compliance programs.
Israel
Israeli MOD Urges Defense Exporters to Develop Anti-Bribery and Corruption Compliance Programs
On September 18, 2024, the Director-General of the Ministry of Defense issued a letter to defense exporters, urging them to develop a compliance program aimed at preventing anti-bribery and corruption violations. Unlike the previous letter published in 2020, the updated letter broadened its scope by referencing the State Attorney’s Guideline No. 1.14, which outlines the general characteristics of an active enforcement program, and references the November 2021 OECD Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions.
Notable Enforcement Events – 2024
Israeli Enforcement Events
Israeli Shikun & Binui Group to Pay 260 Million NIS for Bribery Scheme in Africa
- On October 14, 2024, Israeli courts announced a plea agreement in a bribery case involving the Israeli Shikun & Binui Group (SKBN), the Israeli-based global infrastructure and real estate development company. It was alleged that companies within the Shikun & Binui Group paid bribes to foreign public officials in Africa to advance projects and secure tenders.
Shikun & Binui’s subsidiary, SBI Infrastructures, responsible for the group’s international operations, was convicted of conspiracy to commit a crime and will pay the state a sum of 260 million NIS.
As part of the agreement, the investigation files concerning the parent company and SBI Switzerland were closed.
Among the considerations that guided the court in issuing the judgment and approving the agreement was the fact that the company had adopted a comprehensive and updated compliance and enforcement program.
In addition, several significant penalties were imposed on Shikun & Binui executives held responsible for the bribery scheme:
- Chairman of the Board of Shikun & Binui and Director at the Subsidiary: A fine of 1.5 million NIS and a six-month suspended prison sentence with a probation period of three years.
- CEO and Director of SBI Infrastructures and CEO of SBI Switzerland: A fine of 500,000 NIS, forfeiture of 2.3 million NIS, nine months of community service, and a six-month suspended prison sentence.
- CEO of Shikun & Binui and Chairman of the Board of SBI Infrastructures and SBI Switzerland: A fine of 3 million NIS, nine months of community service, and a six-month suspended prison sentence.
- CFO of SBI Switzerland: A fine of 750,000 NIS, seven months of community service, and a six-month suspended prison sentence.
- Branch Manager in Kenya for SBI Switzerland: A fine of 200,000 NIS, five months of community service, and a five-month suspended prison sentence.
- East Africa Regional Manager for SBI Switzerland: A fine of 450,000 NIS or four months imprisonment, six months of community service, and a six-month suspended prison sentence.
Settlement Agreement in the Class Action Against Israel Electric Corporation Regarding the Siemens Bribery Case
On September 26, 2024, Israeli courts approved a settlement agreement in a class action suit against Israel Electric Corporation (IEC) regarding a bribery case involving the German company Siemens. It was alleged that Siemens paid bribes to a former director of IEC and several employees to manipulate tenders. As part of the settlement agreement, it was determined that IEC would reimburse the public electric consumers by deducting a sum of 23 million NIS from its costs as part of the annual tariff adjustment process.
U.S. Enforcement Events
Throughout 2024, enforcement actions in the U.S. of the Foreign Corrupt Practices Act (FCPA) rose. Given the U.S.’s extraterritorial enforcement and its leadership in establishing global anti-bribery standards, the lessons from the U.S. enforcement actions bear relevance to foreign companies as well.
SAP to Pay Over $220 Million to Resolve Foreign Bribery Investigations
On January 10, 2024, the U.S. Department of Justice announced that SAP SE, a publicly traded global software company based in Germany, will pay over $220 million to settle investigations by the DOJ and the Securities and Exchange Commission (SEC) concerning violations of the Foreign Corrupt Practices Act (FCPA). The investigations focused on allegations involving bribery schemes aimed at government officials in South Africa and Indonesia. As part of the settlement, SAP entered into a three-year deferred prosecution agreement (DPA) in the Eastern District of Virginia, charged with conspiracy to violate anti-bribery provisions of the FCPA.SAP’s misconduct involved paying bribes to officials at state-owned enterprises in both countries to gain lucrative government contracts. SAP received a 40% fine reduction under the DOJ’s Compensation Incentives and Clawbacks Pilot Program due to steps it took following the violations publication, including cooperation with investigative efforts, timely remedial measures including undertaking a comprehensive risk assessment and improving its compliance policies, and due to withholding compensation from employees involved in the violation.
Gunvor S.A. to Pay Over $661 Million to Resolve Foreign Bribery Investigations
On March 1, 2024, the U.S. Department of Justice announced that Gunvor S.A., an international commodities trading company based in Switzerland, will pay more than $661 million to settle an investigation by the U.S. Department of Justice (DOJ) into violations of the Foreign Corrupt Practices Act (FCPA). The investigation revealed that Gunvor engaged in a scheme to pay substantial bribes to Ecuadorean government officials to secure business with the state-owned oil company, Petroecuador. As part of the scheme, Gunvor managers and agents attended meetings in the United States and elsewhere. The bribe payments were routed through banks in the United States using shell companies in Panama and the British Virgin Islands controlled by Gunvor’s co-conspirators. As part of the resolution, Gunvor entered into a plea agreement and was charged with conspiracy to violate anti-bribery provisions of the FCPA. The fine amount was reduced when taking into account Gunvor’s cooperation and remedial measures, including enhancing its third-party due diligence process and improving its compliance policies and frameworks, while also considering Gunvor’s past misconduct, which was the subject of a 2019 resolution in Switzerland due to bribery offenses in Africa.
McKinsey Africa to Pay $122.85 Million for Bribery Scheme Involving South African Officials
On December 5, 2024, McKinsey and Company Africa (Pty) Ltd (McKinsey Africa), a South Africa-based subsidiary of international consulting firm McKinsey & Company Inc., agreed to pay over $122 million to settle U.S. Department of Justice (DOJ) allegations of Foreign Corrupt Practices Act (FCPA) violations. The matter involved a bribery scheme between 2012 and 2016 in which McKinsey Africa paid bribes to secure multimillion-dollar consulting contracts with South Africa’s state-owned enterprises, Transnet and Eskom. While not a U.S. company, McKinsey Africa was prosecuted under the FCPA as an agent of a U.S. company, as the wholly owned and wholly controlled subsidiary of its U.S. parent company, McKinsey & Company, Inc.
McKinsey received a fine reduction for its cooperation, ceasing its work with state-owned enterprises (SOEs) in South Africa while conducting an internal review, and enhancing its compliance policies, including strengthening third-party due diligence procedures, requiring enhanced risk reviews for public-sector clients, and enhancing anti-corruption training programs for employees.
Raytheon Pays Over $950 Million to Resolve Defective Pricing, Foreign Bribery, and Export Control Violations
- On October 16, 2024, Raytheon Company, a subsidiary of RTX (formerly Raytheon Technologies), agreed to pay more than $950 million to resolve multiple investigations by the U.S. Department of Justice (DOJ). Raytheon allegedly bribed a Qatar Emiri Air Force senior official to secure lucrative defense contracts, disguising payments as legitimate subcontracting fees for air defense studies and agreements. Raytheon received a reduction of its penalty due to its cooperation and its significant remediation efforts, including terminating responsible employees, enhancing compliance programs, improving contracts oversight, and recalibrating third-party vetting practices.
It is of note that the bribery scheme not only triggered FCPA violations but also constituted a violation of the International Traffic in Arms Regulations (ITAR) for failing to disclose bribes in the exporting licensing applications with the U.S. Department of State, as required by ITAR.
Moog Inc. Settles FCPA Charges Related to Indian Bribery Scheme
October 11, 2024, the U.S. Securities and Exchange Commission (SEC) announced that Moog Inc., a New York-based manufacturer of motion control systems, agreed to pay $1.1 million in civil penalties to resolve charges under the Foreign Corrupt Practices Act (FCPA). According to the SEC’s findings, employees in Moog’s Indian subsidiary engaged in a bribery scheme involving Indian officials to secure business for the company’s products. The SEC determined that these activities violated the FCPA’s recordkeeping and internal accounting controls provisions, pointing to deficiencies in Moog’s oversight mechanisms for third-party relationships and payments. The enforcement event highlights the need for companies to ensure the efficacy of compliance programs and activities not only in the parent company but also in its subsidiaries.
John Deere Settles FCPA Charges Over Thai Bribery Scheme
On September 10, 2024, the U.S. Securities and Exchange Commission (SEC) announced that Deere & Company, operating as John Deere, agreed to pay nearly $10 million to settle allegations of Foreign Corrupt Practices Act (FCPA) violations. The charges arose from bribes paid to Thai officials by John Deere’s wholly owned subsidiary, Wirtgen Thailand, between late 2017 and 2020. Additionally, employees paid bribes to representatives of a private company to win sales contracts. Despite acquiring Wirtgen Thailand in 2017, John Deere failed to quickly integrate the subsidiary into its compliance and internal controls framework. This failure allowed the bribery schemes to persist unchecked for several years. The SEC emphasized that corporations must ensure newly acquired entities are promptly brought into their compliance systems to mitigate corruption risks.
This client update highlights certain developments in the fields of anti-bribery and anti-corruption that can assist in meeting compliance requirements. It does not review all the updates that took effect in 2024 and is not intended to provide a comprehensive summary. This client update provides general information and may not be relied upon in any particular situation without additional legal advice.
