One of your employees working overseas emails you with great news – they’re about to close a $50 million sale with a new customer. They tell you everything looks great, but there’s just one thing. The local political party chairman said he’ll support your business license application if his company gets the exclusive rights to provide janitorial services at your local affiliate’s new offices. You need janitorial services there anyway – and this seems like a win-win – so you accept his proposal. Did you know you may have just committed a U.S. federal crime? Many employers operating with overseas personnel might not know the nuances of the Foreign Corrupt Practices Act (FCPA), so read on if you want to learn five best practices and minimize your chances of violating the law.
What is Prohibited?
Before we review some best practices, it’s a good idea to understand the basics. The FCPA makes it a crime for any U.S. person or company to directly or indirectly pay or promise to pay money or anything “of value” to a “foreign official” to obtain or retain business or any other improper advantage. Failure to properly record the payment or transaction may also be a separate violation. A guilty verdict can result in significant fines for your company – and possible fines and prison terms for the U.S. individuals involved.
What is “Of Value”?
A thing of value includes, but is not limited to:
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