Compliance & Ethics Professional: FCPA Due Diligence: Starting 2017 on the Right Note
The following article was originally published in Compliance & Ethics Professional on April 12, 2017.
Effective Foreign Corrupt Practices Act (FCPA) due diligence processes require thought and consideration of risk. The stakes are much greater when you are orchestrating a major foreign acquisition or retaining third parties to represent your business. To be compliant with global anti-bribery laws, it is essential to identify and mitigate risk; failure to do so can result in criminal and civil penalties. Due diligence investigations whether as a necessary part of an acquisition process or retention of a third party, should primarily be based on complying with two principal global laws: the FCPA and the UK Bribery Act. Under these laws, conducting due diligence on these targets is not an option, it is required. Incidentally, don’t get too tied to the titles of third parties; they all must be reviewed. Third parties may include suppliers, independent sales agents, vendors, brokers, customs agents, logistic companies, consultants, attorneys, tax advisors, and others. A less technical definition of “third parties” is simply any person or entity that acts on your organization’s behalf.
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