White Paper:

Ten common misconceptions increase the likelihood of FCPA violations

Despite the fact that the Foreign Corrupt Practices Act (FCPA) has been around since 1977, it is only in recent years that this particular federal law has put a spotlight on bribery among public officials in foreign jurisdictions. As a result of this increased scrutiny, Grant Thornton LLP’s FCPA professionals have combed past decisions to reveal 10 common misconceptions that can increase the likelihood of corporate FCPA violations.

“The Department of Justice and the SEC are intensely focused on enforcing the FCPA and penalizing corporations and individuals that violate this act,” says Bill Olsen, Grant Thornton LLP Economic Advisory Service principal and the firm’s FCPA practice leader. “The large number of ongoing FCPA cases and the formation of specialized FCPA units within DOJ agencies suggest that this is a long-term initiative for government regulators. While working with our clients to address issues in this area, we have observed that many multinational organizations are especially interested in tactics that will fully address their FCPA risks.”

“Best practices common to organizations doing business globally are to have a robust ethics and compliance program in place that includes anonymous reporting and policy management to verify the education of vendors, suppliers and agents,” says David Childers, president and CEO of EthicsPoint. “Having a management-supported program visible in the organization helps show the company’s commitment to conducting business correctly — and may serve to reduce potential penalties that may be incurred.”

The attached document outlines the 10 common misconceptions companies should keep in mind to stay in compliance with the FCPA and avoid penalties.