How to Comply with FCPA Regulation – 5 Top Tips

The Foreign Corrupt Practices Act of 1977 (also known as the “FCPA”) is a piece of United States Federal Legislation which serves two main purposes:

  1. To ensure both an accurate and transparent process with regards to accounting procedures as it relates to the Security Exchange Act of 1934
  2. To ensure stiff consequences regarding the bribery of foreign officials.

It is important to note that this legislation was amended twice, in 1988 and 1998, but has had its fair share of controversy as well. The main point of concern is whether the FCPA actually discourages U.S.-based corporations and businesses from investing overseas. It should be noted that one of the prime objectives of the FCPA is to prevent U.S.-based organizations and their respective officers from influencing or bribing any foreign official, or even offering personal rewards or gifts that are non-monetary in nature.

In this article, we review the top 5 methods that a U.S.-established corporation or business can use in order to come into compliance with the FCPA.

1. Ascertain and Formally Determine Your Level of FCPA Risk

There are a number of key variables that your organization should focus upon with regards to this aspect:

  • The kinds of foreign transactions that are currently being engaged in
  • The specific geographic location of these transactions
  • The extent to which your business makes use of foreign government officials and related agencies
  • The federal regulations that your company is currently required to comply with
  • The degree to which you use brokers (or other intermediaries) in order to conduct foreign business transactions
  • The degree of control that you exercise with the above-mentioned entities

Determining the level risk also means that your business or corporation is formally responsible for any violations committed for any intermediaries that are involved in (Read more...)

*** This is a Security Bloggers Network syndicated blog from InfoSec Resources authored by Beth Osborne. Read the original post at: