In the criminal transaction proceedings, WMT Brasilia LLP, Walmart`s Brazilian subsidiary, pleaded guilty to failing to maintain specific records in accordance with FCPA accounting and registration rules. As part of the comprehensive resolution, the U.S. parent company obtained a three-year non-persecution agreement (“NPA”) with the DOJ, recognizing responsibility for criminal conduct related to certain SEC findings. As part of the AFN, Walmart agreed to maintain an independent compliance monitor for businesses for two years, while the DOJ agreed not to sue Walmart if the company complied with its obligations under the agreement for three years. In addition, the $4.3 million fine against WMT Brasilia LLP will be deducted from the amount owed by Walmart. Walmart stated that the payments in question were made prior to 2011 and that since then it has conducted a thorough internal investigation, collaborated with the SEC and DOJ, and has taken steps to implement its global anti-corruption investigation. Over the past seven years, the retailer has spent more than $900 million on this program, FCPA investigations and applications, and “organizational improvements.” The SEC and DOJ have recognized these measures in their resolution agreements with Walmart. A DPA, like an NPA, is an agreement between a prosecutor and an organization that has committed economic crimes. Unlike an NPA in which the prosecutor refrains from laying charges, the Dpa has the effect of suspending the charge, while you define companies that the organization must complete in order to avoid potential criminal prosecution. As soon as the offending company meets the conditions of a CCA, the royalties are removed. Although authorities in the United States and the United Kingdom actively use DPAs to reduce corporate criminal behaviour, DPAs were not available in Canada until recently. The new regulation – which, according to the penal code, is called the “recovery agreement” – ultimately provided Canadian authorities with data protection authorities.
Here is a full description of the regulations of the recovery agreement. To date, no recovery agreement has been reached in Canada. As noted above, the criminal proceedings against Walmart were resolved through an NPA, a vehicle in which the management body refrains from charging, in exchange for an agreement reached by the offending company that acknowledged wrongdoing and generally agreed to comply with measures including fines and remedies. Although NPAs are not currently used by Canadian regulatory authorities, a Delayed Prosecution Agreement (DPA) was introduced in Canada on September 19, 2018 through amendments to the Criminal Code. On June 20, 2019, the Department of Justice and the Securities and Exchange Commission announced long-awaited resolutions with Walmart, Inc. regarding violations of books and records and internal accounting rules of the Foreign Corrupt Practices Act (FCPA). In addition to a three-year non-prosecution agreement and approval of a two-year compliance monitor, Walmart has agreed to pay US$137 million to resolve DOJ criminal complaints and an additional $144 million to settle the SEC`s parallel civil actions. WmT Brasilia, LLP (“WMT”) , the Brazilian subsidiary of 100% of Walmart, pleaded guilty as part of the resolution.