We all know that it is illegal to bribe foreign government officials in order to get (or retain) business. The U.S. Department of Justice recently announced that it is adding 10 additional prosecutors to its Foreign Corrupt Practices Act Unit, and the FBI has set up three new squads of special agents dedicated to these cases. Prosecution of alleged violations is definitely a priority for the U.S. Government.
The DOJ’s Criminal Division recently announced a one-year pilot program “which is designed to motivate companies to voluntarily self-disclose FCPA-related misconduct, fully cooperate with the [DOJ], and, where appropriate, remediate flaws in their controls and compliance programs.”
If your company does not have strong anti-bribery policies and procedures, then you are especially at risk. Even if your overseas business is done through sales agents or distributors, you have responsibilities for educating and training those individuals on the applicable FCPA rules. And, you and your company could be liable for actions of your agents or distributors. Penalties can include large fines and jail time. You also need to be aware that “government officials” could include unlikely people such as the Purchasing Agent at a foreign hospital or a University Professor. So, any dealings that you or your overseas representatives have need to be reviewed carefully.
Take a look at the DOJ’s recent announcement, along with the Guidance documents which accompany it. If you would like additional information on how this may apply to you, you should speak with experienced legal counsel.
