A media statement from the company dated 28th August says" Over the last decade, BCG has made substantial and ongoing investments in its risk and compliance functions. These include:

Reinforcing BCG’s culture: providing regular and targeted mandatory trainings and communications on our purpose, values, Code of Conduct, and Ombudsperson channels, which promote a speak up culture
Enhancing our policies, processes, and controls: strengthening internal controls relating to anti-bribery and corruption due diligence and management of third-party relationships
Scaling our Risk & Compliance function: adding professionals and embedding a global network of risk & compliance focused Managing Directors and Partners
Improving our systems and technology: setting up digital solutions to drive data-driven risk & compliance decisions, monitoring, and testing."

On 27th August 2024, the USA's Department of Justice wrote to the company's lawyers saying "Consistent with the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy, the Department of Justice, Criminal Division, Fraud Section and the United States Attorney’s Office for the Southern District of New York (collectively, the “Government”) have declined prosecution of your client, Boston Consulting Group, Inc. (“BCG” or the “Company”), for [breaches] of the Foreign Corrupt Practices Act (“FCPA”), 15 U.S.C. § 78dd-2. We have reached this conclusion despite evidence of bribery committed by employees or agents
of the Company."

The facts, as set out by the DoJ are far from unfamiliar across the corporate landscape.

The Government’s investigation found evidence that from in or about 2011 until in or about 2017, BCG, through its Lisbon, Portugal office, paid its agent in Angola the equivalent of approximately USD4.3 million in commissions to help BCG obtain business with agencies of the Angolan Government, in particular, the Angolan Ministry of Economy (“MINEC”) and the National Bank of Angola (“BNA”). Certain BCG employees in Portugal were aware that the agent had close ties to Angolan Government officials and members of the ruling political party. BCG agreed to pay the agent 20 to 35 percent of the value of any government contracts procured and sent the funds to the agent’s three different offshore entities. BCG’s agent sent a portion of the commissions in Angolan currency to Angolan government officials associated with MINEC in
connection with obtaining the BCG contracts. Certain BCG employees in Portugal took steps to conceal the nature of the agent’s work for BCG when internal questions arose, including by backdating contracts and falsifying the agent’s purported work product. In total, the agent helped BCG secure eleven contracts with MINEC and one with BNA, which resulted in revenues of approximately USD22.5 million and profits for BCG in the amount of approximately USD14.424 million."

In the letter, the DoJ's reasons for not prosecuting are set out. First is that the company reported the breaches and second is that the calculated profit will be surrendered (the US uses the term "disgorged"). Amongst the other reasons are the remedial steps taken by the company some of which might be expected to have a negative effect on profits and that the company has agreed to cooperate with continuing investigations.

But it's not over until it's over and the DoJ has inserted a get out clause: "This letter agreement does not provide any protection against prosecution of any individuals, regardless of their affiliation with BCG. If the Government learns information that changes its assessment of any of the factors outlined above, it may reopen its inquiry."

The case begs the question: was Boston Consulting Group given special favour? Many other companies that have self-reported have not got off with a warning and an agreement to surrender the profits. Or is it an indicator of a new direction in such cases? If it's the latter, that should be welcomed because, hitherto, self-reporting has all too often turned into an excuse for harsh responses from regulators and prosecutors.

Further reading:
DoJ's letter: https://www.justice.gov/criminal/media/1365431/dl
Company's statement: https://www.bcg.com/press/28august2024-bcg-resolution