RCC Anti-Corruption and Anti-Bribery Compliance

Question 1

Which U.S. federal law prohibits American companies and their agents from bribing foreign government officials to obtain or retain business?

Accepted Answer

The Foreign Corrupt Practices Act (FCPA)

Answer

The Sherman Antitrust Act

Answer

The Sarbanes-Oxley Act

Answer

The Dodd-Frank Wall Street Reform Act

Question 2

Under the FCPA, which of the following is NOT considered a 'foreign official'?

Accepted Answer

A private sector executive with no government role

Answer

An employee of a state-owned enterprise

Answer

A foreign political party official

Answer

A candidate for foreign political office

Question 3

What are 'facilitating payments' (also called grease payments) under the FCPA?

Accepted Answer

Small payments to low-level officials to expedite routine, non-discretionary government actions

Answer

Large bribes paid to senior government ministers to win contracts

Answer

Commission payments made to third-party sales agents

Answer

Charitable donations made to government-linked foundations

Question 4

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

Accepted Answer

The UK Bribery Act prohibits commercial bribery between private parties, in addition to bribery of public officials

Answer

The UK Bribery Act applies only to British citizens, not foreign nationals

Answer

The UK Bribery Act does not require companies to maintain books and records

Answer

The UK Bribery Act has no provision for corporate criminal liability

Question 5

Which affirmative defense is explicitly available under the FCPA anti-bribery provisions?

Accepted Answer

The payment was a reasonable and bona fide business expenditure directly related to promoting products or services

Answer

The payment was below a materiality threshold of $5,000

Answer

The company self-reported the violation within 30 days of discovery

Answer

The foreign official voluntarily solicited the payment

Question 6

In an anti-corruption compliance program, what is the primary purpose of conducting third-party due diligence?

Accepted Answer

To assess the corruption risk posed by agents, distributors, and other intermediaries acting on the company's behalf

Answer

To satisfy annual reporting requirements to the SEC

Answer

To identify competitors who may be engaging in bribery

Answer

To verify that suppliers hold appropriate ISO quality certifications

Question 7

A company operating in a high-risk country discovers that its local sales agent has paid a bribe to a government official to win a contract. Under FCPA enforcement principles, which factor most significantly mitigates the company's exposure?

Accepted Answer

The company had a robust compliance program, promptly self-disclosed, and cooperated fully with authorities

Answer

The bribe amount was less than $50,000

Answer

The government official solicited the payment without company initiation

Answer

The contract was ultimately unprofitable for the company