Challenge of addressing FCPA Compliance
The U.S. Foreign Corrupt Practices Act (FCPA) aims to combat bribery and corruption. It establishes liability for corporations regarding bribery payments and third-party oversight. The U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) both aggressively enforce the FCPA to encourage fair business practices on a global scale. The DOJ expects a risk-based compliance programme that applies greater resources and due diligence for the areas at highest risk in your organisation. In addition, senior management is expected to go beyond internal controls by creating a tone from the top that embeds a culture of FCPA compliance throughout the organisation.
Fines for FCPA violations frequently are in the hundreds of millions of dollars category with the heftiest fine nearing $1 billion. The company is not the only entity at stake when violating FCPA compliance. Individual employees across all levels of the organisation can be hit with civil enforcement actions that can result in significant civil penalties as well as disgorgement of profits gained from corrupt practices. Since 1977, FCPA has been one of the most prominent anti-corruption acts facing organisations and continues to remain a significant concern to ethics and compliance programmes globally.
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