Investigations & Compliance Report (ICR): Foreign Corrupt Practices Act – When Can Concerns Arise

Both U.S. and, in some cases, non-U.S. companies can encounter concerns under the Foreign Corrupt Practices Act of 1977 (FCPA) in a variety of ways. The FCPA contains very broad anti-corruption provisions that prohibit individuals and businesses from directly or indirectly offering, promising, or providing bribes to non-U.S. government and other officials. The FCPA also requires companies that are publicly listed in the United States as well as other “issuers” (such as non-U.S. companies with ADRs traded in the United States) to maintain accurate books and records and a system of  internal controls. Violations of the FCPA can result in serious consequences, including significant fines and penalties — in some cases reaching the hundreds of millions of dollars or more. Also, individuals who violate the FCPA may face imprisonment. Both the Department of Justice and the Securities and Exchange Commission devote significant resources to FCPA enforcement and have stated that they are currently reviewing potential FCPA violations involving multiple companies. Given these circumstances, it is important to appreciate the various instances in which FCPA issues can be triggered. A list of illustrative examples gleaned from FCPA cases and U.S. government guidance appears in our Investigations & Compliance Report (ICR) accessible below:

Access a PDF of the ICR here.

This summary is provided for informational purposes only and contains a limited introduction to the FCPA. This is not intended to constitute legal advice or an opinion, nor does it create an attorney-client relationship with Rimon, PC or its affiliates.

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DAANISH HAMID is a partner with Rimon’s Washington, D.C. office. He is a member of the firm’s White Collar, International Trade, and National Security Practice Groups. Daanish has had over 20 years’ experience with FCPA/anti-corruption investigations and compliance matters. His practice also covers OFAC sanctions, anti-money laundering (AML) /anti-terrorist financing concerns, and CFIUS/national security reviews. Further information is available at Daanish Hamid » Rimon Law. He can be reached at daanish.hamid@rimonlaw.com