FCPA Compliance Guidance for [Company Name] International Expansion

Introduction:

As [Company Name] contemplates expanding its operations into international markets, it is critical to understand and comply with the Foreign Corrupt Practices Act (FCPA). This guidance outlines the key aspects of the FCPA, recent enforcement actions, and practical recommendations for staying compliant during your international expansion.

The FCPA Act Itself:

The FCPA prohibits U.S. companies and individuals from:

• Bribing foreign officials: This includes offering, promising, or authorizing any payment or gift to influence a foreign official in order to obtain or retain business.

• Accounting violations: Companies must maintain accurate books and records and implement internal controls to prevent and detect bribery.

The DOJ’s Corporate Enforcement Policy:

The DOJ’s Corporate Enforcement Policy emphasizes a “robust” compliance program as a key factor in determining whether to prosecute a company.

• Key Elements of a Robust Compliance Program:

  • High-Level Commitment: Strong commitment from senior management and a clear message of zero tolerance for bribery.

  • Risk Assessment: Identify specific risks associated with your international operations and tailor your compliance program to mitigate those risks.

  • Policies and Procedures: Develop clear written policies and procedures for preventing and detecting bribery, including robust due diligence processes for business partners and third-party intermediaries.

  • Training: Provide regular, interactive training to all employees on the FCPA and related compliance obligations.

  • Internal Controls: Implement internal controls to monitor transactions, detect red flags, and ensure compliance with FCPA requirements.

  • Reporting: Establish clear reporting channels for employees to raise concerns about potential violations.

  • Auditing and Monitoring: Regularly assess and monitor the effectiveness of the compliance program.

Enforcement Actions:

The DOJ aggressively prosecutes FCPA violations. Here are two recent examples illustrating the breadth of enforcement:

• [Case 1]: [Briefly describe the case and its outcome, citing relevant DOJ information.] This case highlights the DOJ’s focus on .

• [Case 2]: [Briefly describe the case and its outcome, citing relevant DOJ information.] This case emphasizes the importance of .

Recommendations for Compliance:

Based on the FCPA, the DOJ’s policies, and recent enforcement trends, [Company Name] should take the following steps to ensure compliance:

1. Develop a comprehensive FCPA compliance program: This program should be tailored to the company’s specific risks and should include all of the elements outlined in the DOJ’s Corporate Enforcement Policy.

2. Implement rigorous due diligence: Conduct due diligence on all business partners, including foreign officials, to assess their compliance with the FCPA.

3. Train all employees: Provide comprehensive training on the FCPA, company policies, and procedures, and emphasize the consequences of non-compliance.

4. Establish clear internal controls: Implement robust financial controls, such as segregation of duties, and procedures for approving transactions, to prevent and detect potential violations.

5. Maintain accurate records: Maintain accurate and complete records of all international transactions, including payments to foreign officials or intermediaries.

6. Establish a reporting system: Provide a clear and confidential system for employees to report potential violations.

7. Monitor and evaluate: Regularly monitor and evaluate the effectiveness of the compliance program and make necessary adjustments.

Conclusion:

Compliance with the FCPA is essential for any company operating in international markets. [Company Name] should proactively implement a robust compliance program to mitigate risk, prevent violations, and demonstrate its commitment to ethical business practices. This will not only protect the company from legal and financial consequences but also enhance its reputation and build trust with stakeholders.

Sources:

• United States Department of Justice, Foreign Corrupt Practices Act: https://www.justice.gov/criminal-fraud/foreign-corrupt-practices-act

• United States Department of Justice, Corporate Enforcement Policy: [Link to specific DOJ document, e.g., “Policy Statement on Principles of Federal Prosecution of Business Organizations” (2019)]

• United States Department of Justice, FCPA Enforcement Actions: [Link to specific DOJ document, e.g., “FCPA Resource Guide” (2021)]

• United States Department of Justice, FCPA Declinations: [Link to specific DOJ document, e.g., “Examples of FCPA Matters Where the DOJ Has Declined Prosecution” (2016)]