Chapter 9

What are "facilitating payments"?

These are payments made only to facilitate or expedite routing government actions.

What are the red flags that you should watch out for when dealing with foreign consultants or intermediaries?

Do you see unusual payment patterns or strange financial arrangements with the consultant? Is there a history of corruption in the country in question? Is the intermediary unwilling to certify that he will not be bribing anyone? Are there unusually high commissions being paid? Are expense reports vague or incomplete? Does the consultant really have no qualification's for the job? Was the intermediary recommended to your company by a foreign official?

What is purpose of the Foreign Corrupt Practices Act?

The Act was intended to halt corrupt practices, create a level playing field for honest businesses, and restore public confidence in the integrity of the marketplace.

In general, what does the FCPA prohibit?

The FCPA prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official in order to influence any act or decision of the foreign official in his or her official capacity or to secure any other improper advantage in order to obtain or retain business.

What are two defenses that you can raise if accused of violating the FCPA?

The local law defense and the reasonable and bona fide business expenditure defense are the two defenses.

What are the two most common types of bribes that one may encounter in international dealings?

They are bribery of foreign officials and inter-company bribes

What are the five tests the government must pass to hold you and/or your company liable for violating the FCPA?

They are the following: jurisdiction, or the "who" test, the business purpose test or the "what" test, the corrupt intent test, the payment test, the foreign official test.