Anti-Corruption & Anti-Bribery Compliance Flashcards

What does FCPA stand for?

Answer: Foreign Corrupt Practices Act

The Foreign Corrupt Practices Act (FCPA) is a U.S. law enacted in 1977 that prohibits bribery of foreign government officials by U.S. persons and companies.

Which U.S. government agencies have primary enforcement authority over the FCPA?

Answer: DOJ and SEC

The Department of Justice (DOJ) enforces the FCPA's criminal anti-bribery provisions, while the Securities and Exchange Commission (SEC) enforces the civil anti-bribery and accounting provisions against issuers.

Under the FCPA, which type of payment is explicitly permitted under the 'facilitating payments' exception?

Answer: Payments to expedite or secure the performance of routine, non-discretionary government actions

The FCPA's facilitating payments exception permits small payments to low-level foreign officials to speed up routine, ministerial government actions such as processing permits or providing utilities.

Under the FCPA, who qualifies as a 'foreign official'?

Answer: Officers or employees of foreign state-owned enterprises and international organizations

The FCPA broadly defines 'foreign official' to include employees of foreign government instrumentalities, including state-owned or state-controlled enterprises and officials of public international organizations.

What do the FCPA's accounting provisions require of issuers (public companies)?

Answer: Maintaining accurate books and records and implementing adequate internal accounting controls

The FCPA's accounting provisions require issuers to keep accurate books and records that fairly reflect their transactions and to maintain a system of internal accounting controls sufficient to prevent unauthorized payments.

The UK Bribery Act 2010 differs from the FCPA in which significant way?

Answer: It covers bribery in both the public and private sectors, with no facilitation payments exception

Unlike the FCPA, the UK Bribery Act covers bribery of private individuals (not just foreign officials) and contains no exception for facilitation payments, making it stricter in scope.

What constitutes the 'adequate procedures' defense under Section 7 of the UK Bribery Act 2010?

Answer: Showing the company had reasonable and proportionate anti-bribery procedures in place

Under Section 7 of the UK Bribery Act, a commercial organization can avoid liability for failing to prevent bribery if it proves it had adequate anti-bribery procedures proportionate to its risks.