Anti-Corruption & Bribery Prevention Flashcards
7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Anti-Corruption & Bribery Prevention flashcards as text
Which of the following payments is explicitly exempt from the FCPA's anti-bribery provisions?
Answer: Payments to expedite routine, non-discretionary government actions (facilitation payments)
The FCPA contains a narrow exception for facilitating payments made to expedite routine ministerial government actions, though this exception does not exist under the UK Bribery Act.
A company hires the child of a foreign minister as an intern with no real duties, in exchange for a government contract. This arrangement is best characterized as:
Answer: An indirect bribe through a 'thing of value' provided to a foreign official
Providing employment to a family member of a foreign official in exchange for business benefits constitutes a 'thing of value' and likely violates the FCPA's anti-bribery provisions.
The UN Convention Against Corruption (UNCAC) differs from the OECD Anti-Bribery Convention primarily because it:
Answer: Covers a broader range of corruption offenses and has near-universal membership
UNCAC is the most comprehensive global anti-corruption treaty, covering domestic bribery, money laundering, asset recovery, and other offenses, with 190+ state parties.
Which of the following is the most effective internal control for preventing bribery through third-party agents?
Answer: Implementing right-to-audit clauses and periodic reviews of agent payments and activities
Right-to-audit clauses combined with periodic reviews allow companies to verify that agents are not misusing funds—certification alone is insufficient without monitoring.
In the context of anti-corruption compliance, 'jurisdictional reach' refers to:
Answer: The extent to which a country's anti-corruption law applies to conduct occurring outside its borders
Jurisdictional reach defines when and how a country can prosecute foreign conduct under its anti-corruption laws, such as the FCPA's broad extraterritorial application.
Which action by a company most strongly demonstrates effective compliance program implementation, according to the DOJ's Evaluation of Corporate Compliance Programs (ECCP)?
Answer: Demonstrating that the compliance program is well-resourced, tested, and updated based on lessons learned
The DOJ ECCP emphasizes that programs must be operationally effective—adequately resourced, subject to testing, and continuously improved—not merely documented.
A foreign subsidiary of a U.S. issuer makes a corrupt payment entirely overseas, with no U.S. persons or U.S. dollar transactions involved. Can the parent company face FCPA liability?
Answer: Yes, potentially under the accounting provisions if the subsidiary's books are consolidated with the parent
Even without an anti-bribery nexus, a U.S. issuer that consolidates a subsidiary's financials may face FCPA books-and-records liability if those records are inaccurate.