It's very important that you be aware of the Foreign Corrupt Practices Act, or the FCPA. In many countries, payments that might be viewed simply as "business as usual"...

United States Employment and HR

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I'm a U.S.-based employer and the Foreign Corrupt Practices Act is not front burner for us. Why should we care?

It's very important that you be aware of the Foreign Corrupt Practices Act, or the FCPA. In many countries, payments that might be viewed simply as "business as usual" may fall under the Act — for example, a payment made to procure a government contract or even to obtain an operating license.

The SEC and the DOJ have dual enforcement jurisdiction. While the SEC is limited to publicly traded companies, the DOJ has a much broader mandate. Both agencies now offer a whistleblower incentive to employees who report violations of the FCPA.

And with a new law, the Foreign Extortion Prevention Act, or FEPA, the DOJ is poised to go after the foreign officials who request the bribes — giving those officials an incentive to throw their own victims under the bus.

The risks are high — any company or individual that violates these laws is subject to massive civil fines and/or criminal prosecution. Not to mention millions spent on investigations and independent monitors.

But there are ways to lower the risk. Create a functional policy. Conduct internal training on that policy. Respond to reports of illicit payments. Be prepared to conduct an internal investigation, if...

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