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