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FCPA: A Resource Guide to the U.S. Foreign Corrupt Practices Act

Title:
FCPA: A Resource Guide to the U.S. Foreign Corrupt Practices Act
Format:
Paperback
USA Price: 
Stock:
In stock
GPO Stock Number:
027-000-01426-7
ISBN:
9780160923807
Description

The Guide to Assist Small Businesses to Grow and Prosper From Export

The Guide is the product of extensive efforts by experts at DOJ and SEC, and has benefited from valuable input from the Departments of Commerce and State. It endeavors to provide helpful information to enterprises of all shapes and sizes— from small businesses doing their first transactions abroad to multi-national corporations with subsidiaries around the world.

The Guide addresses a wide variety of topics, including who and what is covered by the Foreign Corrupt Practices Act's (FCPA’s) anti-bribery and accounting provisions; the definition of a “foreign official”; what constitute proper and improper gifts, travel and entertainment expenses; the nature of facilitating payments; how successor liability applies in the mergers and acquisitions context; the hallmarks of an effective corporate compliance program; and the different types of civil and criminal resolutions available in the FCPA context. On these and other topics, the Guide takes a multi-faceted approach, setting forth in detail the statutory requirements while also providing insight into DOJ and SEC enforcement practices through hypotheticals, examples of enforcement actions and anonymized declinations, and summaries of applicable case law and DOJ opinion releases.

 

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The U.S. Military Intervention in Panama: Operation Just Cause, December 1989-January 1990 (Paperback) can be found here: https://bookstore.gpo.gov/products/sku/008-029-00595-6

Federal Rules of Criminal Procedure, December 1, 2014 can be found here: https://bookstore.gpo.gov/products/sku/052-070-07679-8

Table of Contents

Chapter 1: INTRODUCTION 2
The Costs of Corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Historical Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . 3
National Landscape: Interagency Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Department of Justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   . 4
Securities and Exchange Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . 4
Law Enforcement Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . 5
Departments of Commerce and State . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 5
International Landscape: Global Anti-Corruption Efforts . . . . . . . . . . .. . . . . . . . 7
OECD Working Group on Bribery and the Anti-Bribery Conven   . . . . . . . . . . . 7
U.N. Convention Against Corruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Other Anti-Corruption Conventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Chapter 2: THE FCPA: ANTI-BRIBERY PROVISIONS .  .  .  .  .  .  .  ..  .  .  .10
Who Is Covered by the Anti-Bribery Provisions? . . . . . . . . . . . . . . . . . . . . . . . 10
Issuers—15 U.S.C. § 78dd-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    . . . 10
Domestic Concerns—15 U.S.C. § 78dd-2 . . . . . . . . . . . . . . . . . . . . . . .  .  . . . 11
Territorial Jurisdiction—15 U.S.C. § 78dd-3 . . . . . . . . . . . . . . . . . . . . . . . . .  . 11
What Jurisdictional Conduct Triggers the Anti-Bribery Provisions? . . . . .    . . . . 11
What Is Covered?—The Business Purpose Test . . . . . . . . . . . . . . . . . . . . . . . . 12
What Does “Corruptly” Mean? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
What Does “Willfully” Mean and When Does It Apply? . . . . . . . . . . . . . . .. . . . 14
What Does “Anything of Value” Mean? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . 14
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
Gifts, Travel, Entertainment, and Other Things of Value . . . . . . . . . . . . . . . . . . . 15
Charitable Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Who Is a Foreign Official? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . 19
Department, Agency, or Instrumentality of a Foreign Government .  . . . . . . . . . . 20
Public International Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . 21
How Are Payments to Third Parties Treated? . . . . . . . . . . . . . . . . . . . . . .. . . . . 21
What Affirmative Defenses Are Available? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
The Local Law Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23                                                                       Reasonable and Bona Fide Expenditures . . . . . . . . . . . . . . . . . . . . . . .  . . . . . . . 24
What Are Facilitating or Expediting Payments? . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Does the FCPA Apply to Cases of Extortion or Duress? . . . . . . . . . . . . .. . . . . . 27
Principles of Corporate Liability for Anti-Bribery Violations . . . . . . . . . . . . . . . . 27
Parent-Subsidiary Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Successor Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . 28
Additional Principles of Criminal Liability for Anti-Bribery Violations: Aiding and Abetting and Conspiracy . . . . 34
Additional Principles of Civil Liability for Anti-Bribery Violations: Aiding and Abetting and Causing . . .    . . . . . 34
What Is the Applicable Statute of Limitations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................... . . . 34
Statute of Limitations in Criminal Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............... ............... . . . . 34
Statute of Limitations in Civil Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ . 35
Chapter 3: THE FCPA: ACCOUNTING PROVISIONS 38
What Is Covered by the Accounting Provisions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................... . 39
Books and Records Provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................... 39
Internal Controls Provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................. . 40
Potential Reporting and Anti-Fraud Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................... . . . 41
What Are Management’s Other Obligations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................... . . 42
Who Is Covered by the Accounting Provisions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................ . . . 42
Civil Liability for Issuers, Subsidiaries, and Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................ . . 42
Civil Liability for Individuals and Other Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................. . . . . . . . . 43
Criminal Liability for Accounting Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................... . . . . . . . 44
Conspiracy and Aiding and Abetting Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................... . . . . . 45
Auditor Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................... . . . . . . . . 45
Chapter 4: OTHER RELATED U.S. LAWS .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  ..................  .  ..  .  .48
Travel Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................ . . . 48
Money Laundering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... . . 48
Mail and Wire Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ . . 49
Certification and Reporting Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................... . . . . 49
Tax Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Chapter 5: GUIDING PRINCIPLES OF ENFORCEMENT .  .  .  .  .  .  .  .  .  .  .  .  .  .  . .   ............. .  .  .  .52
What Does DOJ Consider When Deciding Whether to Open an Investigation or Bring Charges? ...... . . . . . . . 52
DOJ Principles of Federal Prosecution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     .. . . . . . . . . . 52
DOJ Principles of Federal Prosecution of Business Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . .  ......   . . 52
What Does SEC Consider When Deciding Whether to Open an Investigation or Bring Charges? . . . . . . . . .... 53
Self-Reporting, Cooperation, and Remedial Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  . . . . ... 54
Criminal Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................. 54
Civil Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... 55
Corporate Compliance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... . ..... 56
Hallmarks of Effective Compliance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................... 57
Commitment from Senior Management and a Clearly Articulated Policy Against Corruption . . . . . ..... . . . . . .. . 57
Code of Conduct and Compliance Policies and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                   Risk Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................... . ... . 58
Training and Continuing Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            . . ... 59
Incentives and Disciplinary Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................... . . . . 59
Third-Party Due Diligence and Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................... . .. . 60
Confidential Reporting and Internal Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................... .. . 61
Continuous Improvement: Periodic Testing and Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . . . 61
Mergers and Acquisitions: Pre-Acquisition Due Diligence and Post-Acquisition Integration . . . . . .  . . . . . . ... . 62
Other Guidance on Compliance and International Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . ............. ... 63
Chapter 6: FCPA PENALTIES, SANCTIONS, AND REMEDIES .  .  .  .  .  .  .  .  .  .  .  .  .  .  . .............. ...68
What Are the Potential Consequences for Violations of the FCPA? . . . . . . . . . . . . . . . . . . . . . . . . ......... . ... 68
Criminal Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................. . 68
U.S. Sentencing Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... 68
Civil Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................ 69
Collateral Consequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................69
Debarment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................. . 70
Cross-Debarment by Multilateral Development Banks . . . . . . . . . . . . . . . . . . . . . . . . . . ............. . . . . . . . . 70
Loss of Export Privileges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................ . 71
When Is a Compliance Monitor or Independent Consultant Appropriate? . . . . . . . . . . . . . . ........ . . . . . . . . 71
Chapter 7: RESOLUTIONS 74
What Are the Different Types of Resolutions with DOJ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............. 74
Criminal Complaints, Informations, and Indictments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..............74
Plea Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................... 74
Deferred Prosecution Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................... . . . . . . 74
Non-Prosecution Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................... . . . . 75
Declinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ . 75
What Are the Different Types of Resolutions with SEC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............. . . . 76
Civil Injunctive Actions and Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................... . . . 76
Civil Administrative Actions and Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................. 76
Deferred Prosecution Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................... 76
Non-Prosecution Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................ . 77
Termination Letters and Declinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................... . 77
What Are Some Examples of Past Declinations by DOJ and SEC? . . . . . . . . . . . . . . . . . . . . . . . . . . ........ . 77
Chapter 8: WHISTLEBLOWER PROVISIONS AND PROTECTIONS .  .  .  .  .  .  .  .  .  .  ...............  .  .82
Chapter 9: DOJ OPINION PROCEDURE .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  ..................  .86
Chapter 10: CONCLUSION .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  ................... .90
APPENDIX: THE FOREIGN CORRUPT PRACTICES ACT .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  ............  .  .92
APPENDIX: ENDNOTES 104

Audience

Individuals interested in U.S. policies relating to foreign mergers and acquisitions, corporate compliance officers, accountants, and attorneys with small businesses to large corporations will be interested in this guide that helps to explain many components of this Act in layman's terms.

Product Details

Availability Details:
In Stock
USA Price:
$16.00
International Price:
$22.40
Publisher:
Justice Dept., Criminal Division, Fraud Section, FCPA Unit; and Securities and Exchange Commission, Enforcement Division, FCPA Unit
Year/Pages:
2012: 128 p.
Key Phrases:
  • Resource Guide to the U.S. Foreign Corrupt Practices Act
  • United Statess Foreign Corrupt Practices Act
Weight:
1.1875
Quantity Price:
Discount
Cover:
Paper
Unit of Issue (US):
1
Unit of Issue (Non-US):
1
Item available Date:
05/16/2014
Last Status Update:
09/11/2017
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