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FCPA Compliance Risk Scenarios
Foley has developed a series of scenarios that illustrate real-world FCPA compliance risks. These hypothetical situations could trigger questions concerning your business that you may want to address. If you have any questions about these scenarios, please feel free to contact us.
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Affiliates and Foreign Subsidiaries
You work for a U.S. company with global operations that is an “issuer” under the FCPA. After investigating an allegation of improper payments by your Chinese affiliate, you conclude that the affiliate’s president, a U.S. citizen residing in China, authorized a third-party representative to pay a cash bribe of $1,000 to secure a contract. The payment is recorded on the affiliate’s books as a “consulting fee.”
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Customer Travel and Gifts
The company is introducing a new product and wants to organize a conference to demonstrate its use. In connection with the conference, the company wants to pay the travel and lodging expenses of both private customers and customers in which a foreign government has an ownership interest (such as an oil and gas company).
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Permits, Licenses and Visas
In order to bid on a particular foreign-government contract, your company must first be licensed to transact business in the foreign country. Your company’s application has been pending for several months, and without the license you will be technically disqualified to bid. You have received a call from the company’s foreign-country manager seeking your approval to pay $500 to a government clerk to “jump the licensing queue.”
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Third-Party Agent
Your company, with the help of a foreign agent, is preparing a bid on an RFP to provide security services and equipment for a foreign government building complex. The agent reports that a member of the bid evaluation committee solicited an improper payment that he told the agent would help your company’s bid. The agent also reports that his expenses in connection with the engagement have turned out to be higher than previously negotiated.
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