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News / Legal Risk & Compliance

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Defenses to alleged violations of the FCPA, and one very narrow exception to the FPCA

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Accounting Provision (no secret accounts)

The FCPA requires keeping books, records and accounts in reasonable detail that accurately and fairly reflect the transactions and dispositions of the company.

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Fines and Penalties

Both companies and individuals are subject to civil and criminal liability. Companies may not reimburse employees for fines imposed on them.

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The Business Purpose Test

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Foreign Official

Who is a “foreign official” for purposes of FCPA compliance?

The FCPA is clear that any officers or employees of state instrumentalities are “foreign officials”. State “instrumentalities” include government agencies, customs departments, as well as state-owned or controlled enterprises. The government interprets “foreign official” very broadly, in that it can include “any” employee or officer of or acting on behalf of a foreign government or agency, department, or instrumentality thereof.

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Payment of “Anything of Value”

Payment of “Anything of Value” means to offer, attempt, give, pay, promise to pay or give anything of value.

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Knowledge and Intent

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Who is subject to the FCPA?

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Foreign Corrupt Practices Act (FCPA) Overview

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DOJ and SEC release FCPA Guidance

Late last year, the Criminal Division of the U.S. Department of Justice (DOJ) and the Enforcement Division of the U.S. released FCPA guidance, entitled “A Resource Guide to the U.S. Foreign Corrupt Practice Act”( the “Guide”).

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