Regulating Payments to Foreign Government Officials
Foreign Corrupt Practices Act (FCPA) is a U.S. law that prohibits companies trading securities on U.S. public exchanges, their employees and third parties acting on their behalf “from bribing foreign officials for government contracts and other business,” according to SEC’s website. The FCPA was enacted in 1977 to counter corrupt business practices so that individuals and companies compete for business fairly.
The Act has two main provisions – anti-bribery provisions, which prohibit the offering of “anything of value” to a “foreign official” in order to “obtain or retain business,” and accounting provisions, which require public companies to maintain books and records that “accurately and fairly reflect the transactions and dispositions of the assets of the issuer.”
Under the FCPA, ignorance or inaction is no protection from penalties. Fines for FCPA violations can cost millions. Individuals convicted for FCPA violation are personally liable for the payment of fines, face years of imprisonment and are unable to conduct business with the U.S. government.
Compliance Made Easy
Hiperos 3PM ABAC Accelerator helps companies simplify and streamline FCPA compliance by centralizing third party information and workflows, automating and documenting due diligence, assessment and scoring of third parties, managing only third parties posing corruption risks and monitoring risk factors continuously with data directly from leading data providers. All material ABAC issues and actions taken are recorded in a central “book of record” with a verifiable audit trail. Learn more