What is FCPA compliance?

What is FCPA compliance?

The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business. The SEC and the Department of Justice are jointly responsible for enforcing the FCPA.

What are the 5 elements of FCPA?

The FCPA makes it a crime to: 1) make a payment of, offer or promise to pay, or authorize a payment of money or anything of value, directly or indirectly; 2) to any foreign official, politician, party official, candidate for office; 3) with a corrupt intent; 4) for the purpose of influencing one of these person’s …

Who must comply with FCPA?

Who Is Covered by the FCPA? The FCPA applies to two broad categories of persons: those with formal ties to the United States and those who take action in furtherance of a violation while in the United States. U.S. “issuers” and “domestic concerns” must obey the FCPA, even when acting outside the country.

How do you ensure FCPA compliance?

Top 5 tips

1. Ascertain and formally determine your level of FCPA risk.
2. Create and maintain an FCPA compliance policy.
3. Create an FCPA-based compliance team.
4. Ascertain the anti-corruption/bribery legislation in other countries.
5. Implement and maintain an adequate set of internal audit controls.

Why is the FCPA necessary?

In drafted and implemented appropriately, an FCPA compliance program will: serve as an invaluable tool against corruption, promote ethical conduct within the company, reduce the societal costs of corruption, and foster business expansion domestically and globally.

What is the maximum penalty under the FCPA?

Criminal Penalties Corporations and other entities convicted of violating the FCPA’s accounting provisions face a maximum fine of $25 million per violation. Individuals convicted of violating the accounting provisions face maximum penalties of 20 years in prison and a $5 million fine.

What is the main purpose of FCPA?

The core aim of the Foreign Corrupt Practices Act (FCPA) is to prohibit companies and their individual officers from influencing foreign officials with any personal payments or rewards.

Who is subject to prosecution under the FCPA?

Finally, the subject of territorial jurisdiction is discussed under § 78dd-3. Under the FCPA anti-bribery provisions, a foreign individual or entity that takes part in a corrupt financial business transaction while in the United States or its territories is subject to prosecution for such acts.

What are the benefits of complying with the FCPA?

What is FCPA due diligence?

The FCPA bars payments made to “any person, while knowing that all or a portion of such money or thing of value will be offered, given, or promised, directly or indirectly to any foreign official.” A company can leverage its normal, commercial due diligence as a means of also satisfying its FCPA due diligence needs.

Is it illegal to bribe a foreign official?

Under the Foreign Corrupt Practices Act (FCPA), it is unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business.

Is FCPA a criminal law?

Individuals and corporations are subject to both civil and criminal penalties if found to be in violation of the Federal Corrupt Practices Act (FCPA) anti-bribery, accounting, or other provisions. This means not only fines, but the possibility of imprisonment for individuals found in violation of an FCPA provision.