Foreign Corrupt Practices Act (FCPA)
Accounting Reporting Standards
Applies to all companies listing securities on a US exchange
FCPA Jurisdictions
Applies to any person or entity
Defenses and Exceptions to FCPA Bribery
Appropriate gifts, extortion defense, local law defense, facilitation payments
Agents
Include distributors, consultants, attorneys, business partners, joint venture partners, etc.
Direct Liability
Individual acted 'willfully' under FCPA
Indirect Liability
No protection from liability for agents if red flags existed
Extortion Defense
Payments made to ensure safety of company's employees or agents
Local Law Defense
Payments permitted under written law
Foreign Corrupt Practices Act (FCPA)
Prohibits bribery of foreign officials and requires accurate bookkeeping and internal controls
Anti-Bribery Prohibitions
Prohibits offering anything of value to a foreign official for business advantage
Accounting Provisions
Prosecution for inaccurate records or internal controls deficiencies
Appropriate Gifts
Small gifts given openly and transparently to reflect esteem or gratitude
Facilitation Payments
Smaller payments to expedite routine actions, not prohibited under FCPA
Business Advantage
To gain or retain business advantage, influence decisions, or gain tax advantage
FCPA Bribery violations
Unlawful to offer, pay, or promise anything of value to a foreign official for business advantage