CCEP Anti-Corruption Practices 2

Question 1

Under the Foreign Corrupt Practices Act (FCPA), which of the following is considered a 'foreign official'?

Accepted Answer

An employee of a foreign government-owned enterprise

Answer

The FCPA broadly defines 'foreign official' to include employees of state-owned or state-controlled enterprises, not just government employees.

Question 2

A company discovers that a third-party distributor paid bribes to win contracts on the company's behalf. Under the FCPA, which legal theory most likely exposes the company to liability?

Accepted Answer

The 'knew or should have known' standard for third-party acts

Answer

The FCPA imposes liability when a company knew or consciously disregarded red flags that a third party was paying bribes on its behalf.

Question 3

Which element distinguishes a legitimate facilitation payment from a bribe under the FCPA?

Accepted Answer

The payment is made to expedite a routine non-discretionary government action

Answer

The narrow FCPA facilitation payment exception applies only to payments that expedite routine, non-discretionary ministerial acts by government officials.

Question 4

What does the UK Bribery Act 2010 require that the FCPA does not?

Accepted Answer

A corporate offense for failing to prevent bribery

Answer

The UK Bribery Act's Section 7 creates a strict liability corporate offense for failure to prevent bribery, with an 'adequate procedures' defense unavailable under the FCPA.

Question 5

A compliance officer reviews a due diligence report showing a potential joint venture partner has unresolved bribery allegations. What is the most appropriate next step?

Accepted Answer

Require enhanced due diligence and contractual anti-bribery representations before proceeding

Answer

Unresolved bribery allegations are a significant red flag requiring enhanced due diligence and contractual protections before any business relationship proceeds.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Anti-Corruption Practices 2