Foreign Corrupt Practices Act (FCPA)

FCPA Due Diligence
The U.S. Congress passed the Foreign Corrupt Practices Act ("FCPA") in 1977 in an attempt to ensure commercial fair dealing, government integrity and accountability. The FCPA established criminal and civil penalties for payments made by U.S. companies or U.S. nationals to foreign officials that could be considered bribes.

There are two main areas of FCPA focus:

Anti-Bribery Provisions prohibit the promise, payment, or giving of money or anything of value to any foreign official for the promise of obtaining or retaining business.
Accounting Requirements apply to companies required to file periodic reports with the U.S. Securities and Exchange Commission ("SEC"). These companies must maintain a system of internal accounting controls that provide reasonable assurances that honest and accurate records are being kept; and they must keep books, records and accounts which reflect the transactions and dispositions of the issuer. 

An FCPA program will include plans; regulations, training, internal audit and self-reporting attributes, and all activities will be well-documented to review with regulators.

FCPA violations carry severe penalties of up to $2 million, or twice the gain for firms; and $100,000 for individuals and up to five years imprisonment. Civil actions can be brought by both the SEC and the Department of Justice. Treble damages might be extracted under civil RICO (Racketeer Influenced Corrupt Organization) actions. FCPA issues are also fertile ground for private actions and competitor lawsuits.

According to SEC documents, there were over 50 pending government investigations in 2007 related to FCPA violations - twice the number as in 2006. The largest monetary fine of $44 million was levied in 2007 against one of the world's largest oilfields services companies; and a major worldwide technology company agreed in 2007 to pay $2.5 million in fines and penalties due to conduct of employees at a Chinese subsidiary. Department of Justice officials indicate that the FCPA enforcement is a high priority in the years ahead.

NFC Worldwide Solutions provides unparalleled, confidential global resources to assist you in implementing and assessing FCPA compliance programs, performing background due diligence on your agents and intermediaries, and transactional investigations. A forensic accounting team will be under the direction of your company and its counsel.

As a leading, worldwide provider of Due Diligence and Risk Consulting services for over 35 years, NFC Worldwide Solutions has performed services in more than 150 countries. Serving a global client base, NFC's team is comprised of investigators and analysts with experience in federal, state and local law enforcement. Combined with their unparalleled network of international contacts and sources, NFC comprises the single most comprehensive and cost-effective global information resource available.

Please contact us for additional information.

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International Due Diligence   International Due Diligence