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 Foreign Corrupt Practices Act (FCPA) of 1977 specifically prohibits U.S. persons and entities from bribing foreign government officials for business advantages.

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

The FCPA's definition of 'foreign official' covers government employees, officials of state-owned enterprises, political party officials, and candidates for office, but does not include purely private-sector individuals.

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

Facilitating payments are small payments to minor officials to speed up routine government actions (e.g., processing permits), and the FCPA contains a narrow exception for them, though many other laws do not.

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

Unlike the FCPA, the UK Bribery Act covers both public and private sector bribery, making it broader in scope and including a separate offense for failure of commercial organizations to prevent bribery.

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 FCPA provides an affirmative defense for reasonable and bona fide promotional expenditures, provided they are lawful under the written laws of the foreign country.

(RCC) Regulatory Compliance Certification Practice Test

(RCC) Regulatory Compliance Certification Practice Test

RCC Anti-Corruption and Anti-Bribery Compliance