The FCPA established criminal and civil penalties for unlawful payments or bribes (or promises of payments) to foreign officials for the purpose of obtaining or keeping business, either directly or indirectly or through agents, to influence any act or decision or to secure any improper advantage in order to obtain or retain business. The FCPA applies to foreign companies listed on a US exchange or required to file accounts with the SEC, as well as by US corporations or US nationals. It also applies to foreign nationals who cause an act in the US (such as a wire transfer or establishment of an e-mail server in the US) which furthers an FCPA offence. Accounting requirements apply to companies required to file periodic reports with the SEC. Requirements cover both systems of internal control and adequate record keeping – non- compliance can be a criminal offence. The US federal authorities are pursuing cases aggressively and assessing large penalties for the violations of FPCA. Companies which may be subject to the FCPA are strongly advised to conduct suitable due diligence on intermediaries, agents or local partners. Local U.S. Embassies or Consulates can provide suitable profiles under the International Company Profile (ICP) service. Managers and lawyers in most companies want to believe they work for clean, ethical organizations that hire law-abiding employees. This positive bias often blinds US business people to the reality of international business, where bribes, kickbacks, and false or unrecorded transactions are common. Corrupt activity also exists in the US of course, but it is more difficult to understand what is going on in foreign countries when your US managers have little or no language ability or cultural context. Some US business people believe and frequently say \"Everyone knows you can\'t do business in (Mexico, China, India, Russia - pick a country) without paying bribes. It is part of their culture. It is crazy to have a US law that makes paying bribes in foreign countries illegal in the USA.\" Even if that were true, the FCPA is part of the legal environment for international business. Compliance is not optional because American management has a low opinion of foreign government officials. Corruption in international business is common and frequently ignored. Investigation, prosecution and punishment under the FCPA is common. Understand your company\'s risk of being involved in international bribery. Your program requires a Standalone International Anti-corruption Compliance policy, and an Executive who is Accountable for the “Tone at the Top”. Train your board, management, employees and third parties who distribute your products Know all the 3rd parties your company uses in business outside the USA and conduct due diligence. Establish a set of internal controls over company expenditures and assets. Do not permit facilitating payments. Plan for the likelihood you will have to conduct high quality international internal inves.

1. The FCPA established criminal and civil penalties for unlawful payments or bribes (or promises
of payments) to foreign officials for the purpose of obtaining or keeping business, either directly
or indirectly or through agents, to influence any act or decision or to secure any improper
advantage in order to obtain or retain business.
The FCPA applies to foreign companies listed on a US exchange or required to file accounts
with the SEC, as well as by US corporations or US nationals. It also applies to foreign nationals
who cause an act in the US (such as a wire transfer or establishment of an e-mail server in the
US) which furthers an FCPA offence.
Accounting requirements apply to companies required to file periodic reports with the SEC.
Requirements cover both systems of internal control and adequate record keeping – non-
compliance can be a criminal offence.
The US federal authorities are pursuing cases aggressively and assessing large penalties for the
violations of FPCA.
Companies which may be subject to the FCPA are strongly advised to conduct suitable due
diligence on intermediaries, agents or local partners. Local U.S. Embassies or Consulates can
provide suitable profiles under the International Company Profile (ICP) service.
Managers and lawyers in most companies want to believe they work for clean, ethical
organizations that hire law-abiding employees. This positive bias often blinds US business
people to the reality of international business, where bribes, kickbacks, and false or unrecorded
transactions are common. Corrupt activity also exists in the US of course, but it is more difficult
to understand what is going on in foreign countries when your US managers have little or no
language ability or cultural context.
Some US business people believe and frequently say "Everyone knows you can't do business in
(Mexico, China, India, Russia - pick a country) without paying bribes. It is part of their culture. It
is crazy to have a US law that makes paying bribes in foreign countries illegal in the USA."
Even if that were true, the FCPA is part of the legal environment for international business.
Compliance is not optional because American management has a low opinion of foreign
government officials.
Corruption in international business is common and frequently ignored.
Investigation, prosecution and punishment under the FCPA is common.
Understand your company's risk of being involved in international bribery.
Your program requires a Standalone International Anti-corruption Compliance policy, and an
Executive who is Accountable for the “Tone at the Top”.
Train your board, management, employees and third parties who distribute your products
Know all the 3rd parties your company uses in business outside the USA and conduct due

2. diligence.
Establish a set of internal controls over company expenditures and assets.
Do not permit facilitating payments.
Plan for the likelihood you will have to conduct high quality international internal investigations.
Include clear FCPA terms in every international contract.
Solution
The FCPA established criminal and civil penalties for unlawful payments or bribes (or promises
of payments) to foreign officials for the purpose of obtaining or keeping business, either directly
or indirectly or through agents, to influence any act or decision or to secure any improper
advantage in order to obtain or retain business.
The FCPA applies to foreign companies listed on a US exchange or required to file accounts
with the SEC, as well as by US corporations or US nationals. It also applies to foreign nationals
who cause an act in the US (such as a wire transfer or establishment of an e-mail server in the
US) which furthers an FCPA offence.
Accounting requirements apply to companies required to file periodic reports with the SEC.
Requirements cover both systems of internal control and adequate record keeping – non-
compliance can be a criminal offence.
The US federal authorities are pursuing cases aggressively and assessing large penalties for the
violations of FPCA.
Companies which may be subject to the FCPA are strongly advised to conduct suitable due
diligence on intermediaries, agents or local partners. Local U.S. Embassies or Consulates can
provide suitable profiles under the International Company Profile (ICP) service.
Managers and lawyers in most companies want to believe they work for clean, ethical
organizations that hire law-abiding employees. This positive bias often blinds US business
people to the reality of international business, where bribes, kickbacks, and false or unrecorded
transactions are common. Corrupt activity also exists in the US of course, but it is more difficult
to understand what is going on in foreign countries when your US managers have little or no
language ability or cultural context.
Some US business people believe and frequently say "Everyone knows you can't do business in
(Mexico, China, India, Russia - pick a country) without paying bribes. It is part of their culture. It
is crazy to have a US law that makes paying bribes in foreign countries illegal in the USA."
Even if that were true, the FCPA is part of the legal environment for international business.
Compliance is not optional because American management has a low opinion of foreign
government officials.

3. Corruption in international business is common and frequently ignored.
Investigation, prosecution and punishment under the FCPA is common.
Understand your company's risk of being involved in international bribery.
Your program requires a Standalone International Anti-corruption Compliance policy, and an
Executive who is Accountable for the “Tone at the Top”.
Train your board, management, employees and third parties who distribute your products
Know all the 3rd parties your company uses in business outside the USA and conduct due
diligence.
Establish a set of internal controls over company expenditures and assets.
Do not permit facilitating payments.
Plan for the likelihood you will have to conduct high quality international internal investigations.
Include clear FCPA terms in every international contract.