“Foreign bribery is not an acceptable way of doing business, and we won’t tolerate it.” (Maye Brown LLP). This statement by Lanny Breur in 2010, the Assistant Attorney General for the United States, strikes at the heart of the FCPA, or the Foreign Corrupt Practices Act. Competing internationally for business, it is commonplace for companies to issue bribes in order to beat out their competitors, and in some areas of the world, it’s often expected. However, this practice is illegal for US companies, and it is the responsibility of a corporate legal department to educate executive management as well as employees on the dangers and consequences of such illegal activities.
This slide share put together by Michael Volkov of Mayer Brown LLP discusses the many important point of the FCPA legislation, and what corporate counsel must consider in ensuring its company complies with the Act.
(Courtesy of: http://www.slideshare.net/mvolkov/association-of-corporate-counsel-fcpa)
It’s important to take away from this that enforcement of the FCPA by the Department of Justice (DOJ) and FBI are on the rise, and companies must be vigilant in their compliance in order to avoid substantial fines and even jail time. It is the job of corporate counsel to ensure that:
- employees understand the breadth of the FCPA rules in order to comply
- accounting and finance departments are keeping accurate books and records, adequate internal controls
- wholly-owned international subsidiaries also comply with the FCPA
- report any violations through voluntary disclosures
Major violations and resulting fines have crippled large companies. Corporate counsel must help steer the company clear of such pitfalls.
Sources:
legaleaglefrances 