CE-104 UNDERSTANDING THE FOREIGN CORRUPT PRACTICES ACT AND PENALTIES

CE-104 UNDERSTANDING THE FOREIGN CORRUPT PRACTICES ACT AND PENALTIES

DESCRIPTION

Congress enacted the U.S. Foreign Corrupt Practices Act (FCPA) in 1977 in response to revelations of widespread bribery of foreign officials by U.S. companies. The Act was intended to halt those corrupt practices, create a level playing field for honest businesses, and restore public confidence in the integrity of the marketplace. The FCPA prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business and applies to anywhere in the world a U.S. organization does business and extends to agents such as third parties, consultants, joint venture partners, and others. To exhibit adherence and promote transparency, the FCPA requires the maintenance of accurate books and records and a system of effective internal controls.

 

This course will provide participants with an understanding of the FCPA requirements, consequences for violations and today’s best practices for effective FCPA compliance programs.

LEARNING OBJECTIVES:

  • Learn what constitutes a bribe, corrupt practice, anything of value and improper advantage
  • Identify who is a foreign official as defined by FCPA
  • Learn the criminal penalties and sanctions imposed for violations and understand extraterritorial enforcement
  • Understand the FCPA Accounting Provision and the System of Internal Controls requirement
  • Understand facilitation payments and when they may be allowed and how to avoid violations
  • Learn to recognize red-flag situations
  • Understand Parent/Subsidiary Liability, Successor and Agent Liability

 

COURSE OUTLINE

What constitutes Bribes, Corrupt Practices, Anything of Value and Improper Advantage

  • Consulting fees and commissions
  • Travel expenses/gifts/charitable contributions
  • Corrupt intent
  • Patterns of systemic or bundled payments

Examples of Improper Actions Taken

  • Influencing the procurement process
  • Circumventing the rules of product importation
  • Gaining access to non-public bid tender information
  • Obtaining exceptions to regulations
  • Evading duties or taxes

Identifying who is considered a Foreign Official

  • Officials of a foreign governmental entity and relatives
  • Employees of state-owned enterprises (SOE)
  • Political officials and candidates for political office or political party officials
  • Third parties with the intent to circumvent

Common Red-Flag Situations

  • Excessive commissions to third parties and consultants
  • Vaguely worded consulting agreements or payments to those with unknown roles
  • Engagement of third parties with close relationships to government officials
  • Reimbursement of government official costs or payment of their travel expenses
  • Use of off-shore or shell companies
  • Cash payments or unusually large commissions

Accounting Provisions and Internal Controls

  • Issuer must make and keep books, records, and accounts in reasonable detail
  • The true purpose of the transaction must be accurately and fairly reflected
  • Sufficient assurance of management’s controls, authority, and responsibility over assets
  • Facilitation payments

Enforcements Success and Extraterritorial Jurisdiction

  • Examples of recent enforcement actions across a range of industries and geographies
  • Common violations and typical enforcement
  • Penalties, convictions, imprisonment, and remediation actions
Duration

CPE

Delivery

Field

Level

Who Should Attend

 

 

 

Prerequisites

Advanced Preparation

1 Day

8

Group-Live

Regulatory Ethics (Technical)

Intermediate

Compliance Staff and Managers, Internal Audit Staff and Management; Fraud Investigators and Managers; Financial; Operational, Internal, IT, and External Auditors; Audit Managers; Risk and Compliance Managers and Officers; Information Security Professionals

Professionals with at least 2 years of experience

None