FCPA Compliance Screening Program
Any U.S. company that conducts business in foreign markets must be familiar with the Foreign Corrupt Practices Act (FCPA) in order to avoid substantial liability and fines as well as civil and criminal prosecution. As more U.S. companies are migrating towards conducting global business, their companies and officers are exposed to increased FCPA scrutiny and enforcement actions while conducting business in other countries.
The Foreign Corrupt Practices Act of 1977 was enacted as an amendment to the Securities Exchange Act of 1934 (“Exchange Act”). The FCPA broadly prohibits improper payments to foreign officials. The FCPA has two components. First, the anti-bribery provisions criminalize the bribery of a foreign official to obtain or retain business. Second, the accounting provisions require companies whose securities are listed in the U.S. to maintain accurate books and records and an effective system of internal controls.
A “foreign government official” is defined broadly to include anyone who is an agent, consultant or employed by a foreign government including civil workers, legislators, military officers, diplomats and employees of public international organizations such as the U.N., NATO or the World Bank. Companies may think that they do not conduct business with foreign officials, however, they may come into contact more than they realize. Anytime a company conducts business outside the U.S. they are impacted by FCPA when they conduct business including interactions with custom officials, tax officials, licensing and permits, as well as work permits and Visas.
Many businesses are directly or indirectly involved in foreign business—using third-party foreign sales agents, operating foreign facilities, importing or exporting goods, outsourcing services or owning or being owned by foreign affiliates.
Penalties for FCPA violations are severe for both companies as well as their officers and employees involved. Violations may also result in the loss of export licenses, suspension from conducting business with the U.S. government as well as shareholder lawsuits and long-term reputational damage.
GRMS’ FCPA Screening Program provides the solution that includes the necessary FCPA screening of foreign business partners and due diligence to assist with your legal and compliance FCPA obligations.
Discover GRMS’ global risk mitigation solutions for your company. Contact GRMS for your no obligation online demonstration of our programs.