Your SlideShare is downloading. ×
0
An Antibribery Primer for SMEs: The FCPA,
Corrupt Foreign Public Officials Act (Canada),
and the UK Bribery Act
SBA Buffal...
Disclaimer
• The information provided is believed to be accurate
as of the date of the presentation, but is subject to
cha...
Foreign Corrupt Practices Act
• …”consequences of public corruption can be even more severe in
developing countries.”
• “I...
Foreign Corrupt Practices Act
• Key parts of FCPA

– Antibribery
– Accounting (Book and records)

make/keep books accurate...
Antibribery
• Prohibits “corruptly offering, paying, promising to
pay, or authorizing the payment of any money or
anything...
United States v. BizJet International Sales and
Support, Inc., Docket No: 12-CR-061-CVE, Northern Dist. of
Oklahoma
BizJet International
• MRO provider

• Customer list:
– Mexican Federal Police
– Mexican President‟s Fleet
– Mexican State...
BizJet International
• Paid bribes to officers and other decision-makers
– “commissions”
– “incentives”
– “referral fees”
...
BizJet International
• Internal audit
• Voluntary disclosure
• Cooperation
• Termination
• Enhanced compliance
Result: DPA...
FCPA Guidance
• Nov. 2012 - A Resource Guide to the U.S. Foreign Corrupt Practices Act
http://www.justice.gov/criminal/fra...
DPA – Corporate Compliance Program
• “… has implemented and will continue
to implement a compliance and ethics
program des...
UK Bribery Act 2010
• April 8, 2010 – received Royal Assent
• Delayed effective date - July 1, 2011

• New high water mark...
UK Bribery Act 2010
• Key features:
–Commercial bribery
–Facilitation payments
–Adequate procedures
–UK nexus – “close con...
UK Bribery Act 2010
• Section 7 – failing to prevent bribery
– Only requires company “carries on” business or part of a bu...
“Specially Designed” Light
• (a) Except for items described in (b), an “item” is “specially
designed” if it:
– As a result...
“Specially Designed” Extra Light
• (b) A “part,” etc. … is not “specially designed” if it:
• Is a fastener (e.g., screw, b...
BIS Decision Tools
Commerce Control List (CCL) Order of
Review
http://www.bis.doc.gov/index.php/exportcontrol-classificati...
Aeroflex, Inc. Consent Agreement
• 158 violations

• “…systemic and longstanding nature of
the violations based on imprope...
Credit Manager Export Compliance Role
• Understand basics of export controls

– Consequences of violations
• Screen custom...
Thank you
Jon P. Yormick
Attorney and Counsellor at Law
Law Offices of Jon P. Yormick Co. LPA
jon@yormicklaw.com
Toll Free...
Upcoming SlideShare
Loading in...5
×

An Antibribery Primer for SMEs: The FCPA, Corrupt Foreign Public Officials Act (Canada), and the UK Bribery Act

394

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
394
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "An Antibribery Primer for SMEs: The FCPA, Corrupt Foreign Public Officials Act (Canada), and the UK Bribery Act"

  1. 1. An Antibribery Primer for SMEs: The FCPA, Corrupt Foreign Public Officials Act (Canada), and the UK Bribery Act SBA Buffalo District International Trade Task Force Buffalo, New York December 6, 2013 Law Offices of Jon P. Yormick Co. LPA An International Law Practice Attorney Advertising
  2. 2. Disclaimer • The information provided is believed to be accurate as of the date of the presentation, but is subject to change without notice • This presentation is designed for informational purposes only and is not intended to be, nor should it be deemed, specific legal advice. If such advice is required, please consult with qualified legal counsel
  3. 3. Foreign Corrupt Practices Act • …”consequences of public corruption can be even more severe in developing countries.” • “In today’s global economy, the negative effects of corruption inevitably flow back to the United States.” – Economic crises that destablize the global financial system – Opens borders for terrorists to cross – Raises prices of goods – Costs American jobs because U.S. companies cannot compete effectively Deputy Attorney General James M. Cole, Foreign Corrupt Practices Act Conference, Nov. 19, 2013
  4. 4. Foreign Corrupt Practices Act • Key parts of FCPA – Antibribery – Accounting (Book and records) make/keep books accurately and reflect transactions maintain adequate internal accounting controls
  5. 5. Antibribery • Prohibits “corruptly offering, paying, promising to pay, or authorizing the payment of any money or anything of value , directly or indirectly, to a foreign government official for the purposes of obtaining or retaining business for, or directing business to, any person.” Information, United States v. Weatherford International Ltd., Court Docket Number: 13-CR-733, Nov. 26, 2013
  6. 6. United States v. BizJet International Sales and Support, Inc., Docket No: 12-CR-061-CVE, Northern Dist. of Oklahoma
  7. 7. BizJet International • MRO provider • Customer list: – Mexican Federal Police – Mexican President‟s Fleet – Mexican State of Sinaloa (Governor‟s Fleet) – Panama Aviation Authority
  8. 8. BizJet International • Paid bribes to officers and other decision-makers – “commissions” – “incentives” – “referral fees” • Board knowledge and approval • Benefit - $7M+ • 200-999 employees – about 320
  9. 9. BizJet International • Internal audit • Voluntary disclosure • Cooperation • Termination • Enhanced compliance Result: DPA + 4 former employees criminally charged Penalty: $11.8M Enhanced compliance – review/report Mandatory successor liability
  10. 10. FCPA Guidance • Nov. 2012 - A Resource Guide to the U.S. Foreign Corrupt Practices Act http://www.justice.gov/criminal/fraud/fcpa/guide.pdf • Opinion Releases Index http://www.justice.gov/criminal/fraud/fcpa/index/ – Audit rights – Charitable contributions – Gifts, Travel & Entertainment – JVs, M&A – Reasonable, bona fide expenditures – Third-party agents
  11. 11. DPA – Corporate Compliance Program • “… has implemented and will continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other applicable anti-corruption laws throughout its operation…”
  12. 12. UK Bribery Act 2010 • April 8, 2010 – received Royal Assent • Delayed effective date - July 1, 2011 • New high water mark • …the UK Bribery Act “finally bring[s] UK rules on corrupt payments into line with other OECD countries.”
  13. 13. UK Bribery Act 2010 • Key features: –Commercial bribery –Facilitation payments –Adequate procedures –UK nexus – “close connection”
  14. 14. UK Bribery Act 2010 • Section 7 – failing to prevent bribery – Only requires company “carries on” business or part of a business in UK – FCPA – supply side only; prohibits bribe payments – UKBA -
  15. 15. “Specially Designed” Light • (a) Except for items described in (b), an “item” is “specially designed” if it: – As a result of “development” has properties peculiarly responsible for achieving or exceeding the performance levels, characteristics, or functions in the relevant ECCN or U.S. Munitions List (USML) paragraph; or – Is a “part,” “component,” “accessory,” “attachment,” or “software” for use in or with a commodity or defense article „enumerated‟ or otherwise described on the CCL or the USML.
  16. 16. “Specially Designed” Extra Light • (b) A “part,” etc. … is not “specially designed” if it: • Is a fastener (e.g., screw, bolt, nut, nut plate, stud, insert, clip, rivet, pin), washer, spacer, insulator, grommet, bushing, spring, wire, solder; • Has the same function, performance capabilities, and the same or „equivalent‟ form and fit, as a commodity or software used in or with an item that: • Is or was in “production” (i.e., not in “development”); and not on CCL or USML or controlled for AT only; • Was or is being developed as a general purpose commodity or software (no specific knowledge) or • Was or is being developed with “knowledge” that it would be for use in or with commodities or software… exclusively for use in or with EAR99 commodities or software.
  17. 17. BIS Decision Tools Commerce Control List (CCL) Order of Review http://www.bis.doc.gov/index.php/exportcontrol-classification-interactive-tool Specially Designed http://www.bis.doc.gov/index.php/speciallydesigned-tool
  18. 18. Aeroflex, Inc. Consent Agreement • 158 violations • “…systemic and longstanding nature of the violations based on improper product classifications…” • $8M – 50% on remedial measures
  19. 19. Credit Manager Export Compliance Role • Understand basics of export controls – Consequences of violations • Screen customers & destinations – Consolidated Screening List http://export.gov/ecr/eg_main_023148.asp • Keep records • Know what to do next • Stay informed – ECR, sanctions, diversion risks • Promote compliance atmosphere
  20. 20. Thank you Jon P. Yormick Attorney and Counsellor at Law Law Offices of Jon P. Yormick Co. LPA jon@yormicklaw.com Toll Free: +1.866.967.6425 Mobile: +1.216.269.5138 Buffalo | Chihuahua, Mexico† |Cleveland †Affiliate office
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×