Unit I.3
FCPA - Accounting Provision Subsets [2]
1.Books and records must accurately reflect transactions and assets, which must be attested by external auditors. 2.Internal controls must be sufficient to ensure management control.
FCPA - Anti-Bribery Provision Subsets [5]
1.No company subject to FCPA may authorize/offer corrupt payments. 2.Who is subjected to FCPA. 3.Only corrupt payments to foreign officials and politicians are prohibited, other commercial bribery is not mentioned. 4.Sufficient Accounting Provision would not allow any corrupt payments to operate. 5.Financial Institutions must have controls to prevent money laundering and terrorist financing.
UKBA - Offenses [4] [O.R.B.F]
1.Offering or promising an advantage. 2.Requesting or agreeing to an advantage. 3.Bribery of a foreign official. 4.Failure of an organization to prevent a bribe for purposed of retaining/obtaining business and business advantages.
UKBA - Geographical Reach
Any UK company doing business overseas, and any foreign company doing business domestically.
Common Anti-Bribery Law Prohibitions
Authorizing anything of value to company employees or government officials for the purpose of influencing a decision, ensuring an improper advantage, or to obtain/retain business.
UKBA - Who is Subject?
Bribes to foreign officials, commercial bribery (corporate officials, business owners, etc), passive bribery (receiving bribes), and failure by organization to prevent bribery.
U.K. Bribery Act of 2010 (UKBA) Important Information [3] [C.O.G.S]
Consequences, Offenses, Geographical reach, and Subjects.
Reasons for Enacting Anti-Bribery Laws
Corruption is costly for companies, globalization requires this legislation, and enforcement of these laws have become more international.
Sarbanes-Oxley Act of 2002 (SOX)
Created responsibilities for Issuers of publicly traded companies and their auditors. Any company issuing securities must adopt a code of ethics for senior management.
FCPA - Anti-Bribery Provision - Who is Subject to Provisions?
Domestic companies doing business with other domestic and overseas companies, registered and unregistered companies with the SEC. US and foreign companies who issue securities on a US Exchange or file with the SEC. Any company acting corruptly while in the US.
FCPA - Facilitation Payments - Characteristics, Reasons and Risks
Facilitation Payments are allowed payments to government officials that are required in other countries to perform duties. These are usually required to receive a product, service or license that is routinely needed, which the employee is entitled to but could not receive without the payments. Payment cannot be absurdly high, and should be accounted for in the books. Facilitation Payments must be clearly defined. The line between these payments and illegal activity is blurred, US law enforcement and other jurisdictions may not agree.
UKBA - Consequences
Individuals can be imposed a fine and imprisonment. Organizations can also be fined.
Geographical Reach of Anti-Bribery Laws
Many Anti-Bribery Laws can be enforced worldwide.
FCPA - Corrupt Payments - Prohibited/Allowed Payments and Violation Consequences
Mere offer or promise of bribe is prohibited. De minimis gifts and tokens of hospitality are allowed. Passive bribery, or receiving of bribes is not prohibited. Individuals may receive fines or imprisonment, the fines may not be paid by employer. Corporation may receive a fine as well.
Purpose of Anti-Bribery Laws
Prevent legal practices, create a level playing field for international trade, and increase quality of internal controls.
U.S. Foreign Corrupt Practices Act (FCPA) Sets of Provisions [2] [Double A] and Important Information [2] [C.F]
Provision Sets refer to Accounting and Anti-Bribery. Other important information refer to Corrupt Payments and Facilitation Payments.
Main Anti-Bribery Regimes Worldwide [2]
U.S. Foreign Corrupt Practices Act (FCPA) and U.K. Bribery Act (UKBA).
