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While the Foreign Corrupt Practices Act (“FCPA”) is an extremely complex act, there are two common FCPA violations of which automotive companies with international operations should be particularly sensitive. We recently discussed the challenges associated with providing gifts, meals, and entertainment to customers. In this post, we discuss another common issue: using third-parties abroad. Third-Parties FCPA violations are also frequently attributable to the practices of third-party agents. Accordingly, automotive companies should evaluate third-party contractors…
As our previous posts illustrate, violations of the Foreign Corrupt Practices Act (“FCPA”) can carry a hefty cost. Two issues are commonly the impetus for FCPA violations and, practically speaking, pose significant FCPA compliance challenges. Automotive companies which conduct international business should be particularly sensitive to (1) providing gifts, meals, and entertainment to potential and existing customers, and (2) using third-parties abroad. This post will cover the first issue, and we will discuss the issue of…
Violations of the Foreign Corrupt Practices Act (“FCPA”) can lead to hefty penalties. Indeed, individuals who violate the FCPA, and their employers, could be on the hook for a variety of penalties described below. Businesses need to be aware of these potential consequences in order to appropriately perform risk-based analyses and determine what level of compliance program to utilize. The FCPA’s penalties make it clear that automotive companies conducting international business cannot afford to ignore…
So, we have covered the Foreign Corrupt Practices Act’s (“FCPA”) scope, but the FCPA anti-bribery provisions also contain certain exceptions and affirmative defenses. These exceptions and affirmative defenses attempt to carve out legitimate payments to foreign officials, so the FCPA does not unreasonably hamper international business. Be wary, however, because prosecutors narrowly interpret these exceptions and affirmative defenses. Moreover, as most FCPA cases settle, the prosecutor’s perspective will ultimately drive the settlement negotiations and…
As our previous posts illustrate, violations of the Foreign Corrupt Practices Act (“FCPA”) can carry a hefty cost. Two issues are commonly the impetus for FCPA violations and, practically speaking, pose significant FCPA compliance challenges. Manufacturers which conduct international business should be particularly sensitive to (1) providing gifts, meals, and entertainment to potential and existing customers, and (2) using third-parties abroad.…
Violations of the Foreign Corrupt Practices Act (“FCPA”) can lead to hefty penalties. Indeed, individuals who violate the FCPA, and their employers, could be on the hook for a variety of penalties described below. Companies need to be aware of these potential consequences in order to appropriately perform risk-based analyses and determine what level of compliance program to utilize. The FCPA’s penalties make it clear that manufacturers conducting international business cannot afford to ignore…
So, we have covered the Foreign Corrupt Practices Act’s (FCPA) scope, but the FCPA anti-bribery provisions also contain certain exceptions and affirmative defenses. These exceptions and affirmative defenses attempt to carve out legitimate payments to foreign officials, so the FCPA does not unreasonably hamper international business. Be wary, however, because prosecutors narrowly interpret these exceptions and affirmative defenses. Moreover, as most FCPA cases settle, the prosecutor’s perspective will ultimately drive the settlement negotiations and…
As discussed in our Foreign Corrupt Practices Act (“FCPA”) overview, automotive companies participating in international business must be mindful of the FCPA. Though many are aware of the FCPA, some do not understand its breadth and depth. Below is a bare-bones breakdown of this federal law’s scope. While the below outline will help readers understand future posts about FCPA defenses, penalties, and compliance, the FCPA contains many nuances, so you should consult legal counsel…
The consequences of an investigation into bribery allegations can be tricky for any manufacturing company, so it’s important to understand the U.S. anti-bribery provisions. As discussed in our Foreign Corrupt Practices Act (“FCPA”) overview, manufacturers participating in international business must be mindful of this federal law. Though many are aware of the FCPA, some do not understand its breadth and depth. Below is a bare-bones breakdown of the FCPA’s scope. While the below outline will…
Just as in 2014, the Foreign Corrupt Practices Act (“FCPA”) should be top of mind for any automotive company conducting or considering international business. Indeed, any doubts that the government was still interested in investigating and prosecuting companies and individuals for violations of the FCPA, were put to rest in 2014. This is so because government enforcement authorities disclosed two enforcement actions in 2014 that resulted in two of the top 10 fines ever paid for…