CCEP Anti-Corruption Practices 3

Question 1

A sales executive claims that a $5,000 dinner for a government minister was 'promotional expenditure.' What compliance concern does this raise?

Accepted Answer

The expenditure may constitute an improper benefit to a foreign official under anti-bribery laws

Answer

Lavish hospitality for government officials can constitute a corrupt payment under the FCPA and UK Bribery Act even when labeled as promotional expenditure.

Question 2

Which type of anti-corruption due diligence is typically most critical when acquiring a company operating in a high-risk jurisdiction?

Accepted Answer

Pre-acquisition due diligence to identify successor liability risks

Answer

Pre-acquisition due diligence is critical because acquirers can inherit FCPA liability for pre-acquisition conduct, making early identification of risks essential to deal structuring.

Question 3

Under the FCPA, what affirmative defense is available to a company that made payments that are lawful under the written laws of the foreign country?

Accepted Answer

The 'local law' defense

Answer

The FCPA provides a 'local law' affirmative defense when a payment was lawful under the written laws and regulations of the foreign official's country.

Question 4

A company's subsidiary in a foreign country engages in bribery without the knowledge of the parent company's executives. Which factor would most likely still expose the parent to FCPA liability?

Accepted Answer

The parent failed to implement adequate internal controls over the subsidiary

Answer

Failure to implement adequate anti-corruption internal controls over subsidiaries can expose a parent company to FCPA accounting provisions liability, even without direct knowledge of bribery.

Question 5

What is 'politically exposed person' (PEP) screening primarily used to identify in an anti-corruption compliance program?

Accepted Answer

Individuals who hold or have held prominent public positions and their close associates

Answer

PEP screening identifies individuals in prominent public roles and their close associates who present elevated corruption risk due to their influence over government decisions.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Anti-Corruption Practices 3