Corruption can damage the integrity and image of your business that you may have worked very hard to cultivate. In the United States, the government has channeled all of its efforts to eliminate corruption at all levels of business and public offices.
Over the years and since the introduction of the Foreign Corrupt Practices Act (FCPA) in 1977, there have been thousands of cases wherein corruption has been uncovered. Fines and prison sentences were issued. Stiff sentences and convictions are used as a deterrent to prevent people from engaging in corruption.
FCPA compliance
The FCPA passed through U.S. Congress in 1977. It was first introduced to prevent bribery from occurring in international deals wherein foreign officials were bribing American businessmen to acquire high-profit business contracts.
Now, the FCPA regulates virtually every instance of reported corruption in U.S. companies to reduce and detect fraud and bribes. Since its inception, it has resulted in billions of dollars in fines, sanctions and the arrest of many corrupt business owners. It has proved its worth in both private and public business. It is an invaluable asset to the U.S. government and to business owners.
FCPA compliance is very important to business owners, who must reduce their risk of being exposed to corruption, avoid becoming involved in it and report corruption whenever it occurs. Being aware of corruption but not reporting it is complicity.
To comply with the FCPA, companies must keep their books meticulously, preserve records, and control their company carefully to ensure no unlawful payments take place. It is important to ask help from attorneys who specialize in FCPA compliance such as Dr. Nick Oberheiden, who wrote a JD Supra article about this law.
Enforcing the FCPA are the Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ). These agencies almost exclusively deal with the investigation of corruption and the prosecution thereof. They take FCPA violations gravely and will vehemently pursue and prosecute anybody suspected of being involved in a violation of the FCPA. Both of these agencies understand the economic impact that corruption can have even at a small level.
Prosecutions under the FCPA in recent years have targeted businesses and individuals. Non-compliance can risk federal prosecution and sanctions being brought against you as a business owner.
Anti-corruption laws such as the FCPA ensure ethical behavior. By adhering strictly to the regulations, you ensure that you send a clear message to every level of your business and other businesses that corruption is not tolerated. Having an internal culture of ethical conduct in your business is something you should strive for.
Unfortunately, some countries have a very relaxed policy to corruption. By engaging with FCPA regulations, you personally take the fight against corruption and give back to the U.S.
CONAN Daily 