Audit Director Roundtable, Finance Practice © 2009 Corporate Executive Board. All Rights Reserved. ADR1B2ZMP1 1 The FCPA establishes both anti-bribery.

Slides:



Advertisements
Similar presentations
July 2012 Vendor/Client/Tenant/Landlord Jones Lang LaSalle Due Diligence.
Advertisements

HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996 (HIPAA)
1 The Foreign Corrupt Practices Act (FCPA) ________________________ John Parkerson, General Attorney Law Department.
Roscoe C. Howard, Jr. phone: Foreign Corrupt Practices Act (FCPA) DOJ & SEC Focus On China Atlas Legal -
2010 PLUS International Conference Foreign Corrupt Practices Act: Unexpected Liabilities For D&O Insurers.
Bribery Jon Taylor 24 June What is bribery? Transparency International (a non-governmental anti-corruption organisation) defines bribery as "the.
Ten Things That Everybody Knows About The Foreign Corrupt Practices Act ― And That Aren’t So! Simeon M. Kriesberg Mayer, Brown, Rowe & Maw LLP Washington,
Sarbanes-Oxley Act of Benefits of Act Three quarters of the financial executives in the Oversight Systems survey said that their company had realized.
Chapter 6 The Role of Government Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written.
Chapter 4: Ethics and Business Decision Making Chapter 4: Ethics and Business Decision Making.
© Copyright 2013 by K&L Gates LLP. All rights reserved. Presented to the Commerce and Industry Association of New Jersey New Jersey’s Pay-to-Play Law July.
Sarbanes-Oxley Act. 2 What Is It? Act passed by Congress in response to the recent and continuing corporate scandals. Signed into law July 30, Established.
McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 The Role of Government.
1 CHAPTER XXVIII FOREIGN CORRUPT PRACTICES ACT & ANTIBOYCOTT LAWS  Foreign Corrupt Practices Act (FCPA)  Antiboycott Law.
Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 The Role of Government McGraw-Hill.
JCI Ethics Certification and Compliance Training 2009.
GREENBERG TRAURIG, LLP ATTORNEYS AT LAW ©2010. All rights reserved. Managing Compliance Risk in International Transactions Michael X. Marinelli.
HIPAA Health Insurance Portability & Accountability Act of 1996.
International Corruption laws & Culture HCA 457i Michelle Wheeler, Miyeon Kim.
Developing An Effective Global Anti-Bribery Compliance Program The International Pharmaceutical Regulatory and Compliance Congress Brussels, Belgium June.
It’s Not Worth the Risk: Understanding Bribery and the U.S. Laws that Apply to You January 29, 2015 Courtney Gould Miller O’Melveny & Myers LLP This presentation.
Handout # 2 Cross-national Ethics And Social Responsibility 2-1.
Export Regulations and Tax Incentives Section VI.
Scomi Oiltools Compliance Training Program "Foreign Corrupt Practices Act“ FCPA.
“Package” of Anti-Corruption Laws enacted in compliance with the Anti- Corruption Plan (approved by the Russian President on July 31, 2008): Federal Law.
Risk Management Reconstructed Implementing fraud risk intelligence practices July 2011 KPMG FORENSIC SM.
© Sheppard, Mullin, Richter & Hampton LLP 2008 THE FOREIGN CORRUPT PRACTICES ACT (FCPA) WHAT OUR CLIENTS NEED TO KNOW AND WHY THEY NEED TO KNOW IT Bethany.
ISACA Ireland Effective crowd control Managing third party integrity risks 30 April 2014.
0 Overview of the Foreign Corrupt Practices Act and Related Corporate Procedures (A312, A312A and A301)
Compliance and Corporate Social Responsibility 6th CIS LOCAL COUNSEL FORUM Mr. Alexander Bolkvadze, Partner, BLC Law Office - Tbilisi.
Nangia & Co. Chartered Accountants. Presentation structure 1. Background 2. Introduction 3. Persons subjected to FCPA 4. Importance of Cross Border Compliance.
BIO UTAH LIFE SCIENCE SUMMIT 2013: Legal Considerations and Practical Advice November 6, 2013.
The Bribery Act 2010 Bribery – no longer a ‘conventional’ way of doing business TELFA CONFERENCE AND GLOBAL LAW FORUM IN CONJUNCTION WITH USLAW MOSCOW.
Copyright© 2010 WeComply, Inc. All rights reserved. 10/10/2015 Foreign Corrupt Practices Act (FCPA)
1 Lecture 3: Conflict of Interest ( 利益衝突 ) Please refer to Chapter 5, “Ethics and the Conduct of Business” by John R. Boatright BBA 361 BBA 361 Business.
1 International Business Law Lecture 4 The Multinational Enterprise.
© Sheppard, Mullin, Richter & Hampton LLP 2007 FOREIGN CORRUPT PRACTICES ACT.
Business Law and the Regulation of Business Chapter 40: Securities Regulation By Richard A. Mann & Barry S. Roberts.
Foreign Corrupt Practices Act, 1977, prohibits Any individual, firm, officer, director, employee, agent of firm, stockholder acting on behalf of firm,
Preparing Russian Companies for UK Bribery Act Enforcement - The Defence of “Adequate Procedures” Nicholas Munday 14 December 2010 Moscow.
Corruption in China MARK 5940 Week 6 : Assessing Cultural/Corporate Environments.
HOSTING, ENTERTAINING AND PROVIDING GIFTS TO OFFICIALS: WHAT IS AND ISN’T ACCEPTABLE? ACI Conference, Moscow, March 2011.
Health Insurance Portability and Accountability Act of 1996 HIPAA Privacy Training for County Employees.
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 22 Criminal Law and Procedure in Business.
Ethics in IB B&W or Grayscale World?. University of Texas at Austin Importance of Ethics Many ethical issues arise while doing business in LA Moral implications.
“Foreign Official” under the FCPA means “any officer or employee of a foreign government or any department, agency, or instrumentality thereof, or of.
Antitrust /Anticorruption Compliance Overview & Practical Guidelines Kristina. Wang Legal Office BenQ Corporation
Chapter 41 Corporations: Securities and Investor Protection McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 4: Ethics and Business Decision Making Chapter 4: Ethics and Business Decision Making.
TAMILLA CURTIS AND JOHN LEDGERWOOD EMBRY-RIDDLE AERONAUTICAL UNIVERSITY, USA THE COURAGE TO SPEAK UP A TEACHING CASE STUDY WORKPLACE AND PROFESSIONAL ETHICS.
Copyright © 2009 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. CHAPTER 16 International Marketing Law: Sales Representatives,
Criminal Law for the Criminal Justice Professional Norman M. Garland Third Edition Copyright © 2012 The McGraw-Hill Companies, Inc. All Rights Reserved.
Fraud and Corruption David Simpson, 3VB
Copyright All rights reserved. Copyright All rights reserved. Foreign Corrupt Practices Act (FCPA) – value added for business or competitive.
The Bribery Act 2010 Anti-Money Laundering and Financial Crime Conference 18 March London Daren Allen & Aaron Stephens.
Leveraging Global Legislations in Conducting Effective Trials National Judicial Academy, Bhopal March 26, 2016 Kunal Gupta.
Copyright © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 The Role of Government McGraw-Hill.
Enforcement Actions and Penalties Wyn Clark U.S. Treasury 1.
Baker Hughes: Greasing the Wheels in Kazakhstan. 1. Introduction 2. FCPA and Anti-Bribery Legislation 3. SEC and DOJ Increase Enforcement 4. Roy Fearnley.
Presentation on Mechanisms for Reducing Corruption through Private Sector Monitoring and Enforcement by Essa Faal / Thomas F. McInerney General Counsel.
Distributor Training 1. Why Compliance with Global Anti-Bribery Laws Matters What is Bribery Risks to Medical Device Companies and Distributors Minimizing.
Pattison, Sampson, Ginsberg & Griffin, P.C.
Vendor/Client/Tenant/Landlord Jones Lang LaSalle Due Diligence
Foreign Corrupt Practices Act (FCPA)
Complying with the Foreign Corrupt Practices Act
Proceedings.
The Focus on Compliance and Ethical Conduct
Vendor/Client/Tenant/Landlord Jones Lang LaSalle Due Diligence
Vendor/Client/Tenant/Landlord Jones Lang LaSalle Due Diligence
CHAPTER XXVIII FOREIGN CORRUPT PRACTICES ACT & ANTIBOYCOTT LAWS
Presentation transcript:

Audit Director Roundtable, Finance Practice © 2009 Corporate Executive Board. All Rights Reserved. ADR1B2ZMP1 1 The FCPA establishes both anti-bribery prohibitions and accounting reporting standards, while the latter applies only to those companies affected by the FCPA and who list securities in the United States Prohibitions of FCPA In this period of rapid change in anti-corruption enforcements activity, the following trends have emerged in recent year which are evident in case law: Increase in the frequency and severity of litigation (example: profit disgorgement) More creative methods of resolution in criminal cases (example: deferred prosecution for a cooperative defendant) A spike in self-reporting violation in hopes that cooperation will reduce penalties Post-proceeding monitoring of compliance conduct Applies to all companies under the FCPA Anti-Bribery Prohibitions In general, the FCPA makes it unlawful for: U.S. Corporations to bribe foreign government officials Foreign corporation and persons, directly or through agents, an act of furtherance of the corrupt payment to take place in the United States and its territories. If your company is listed in the United States Companies whose securities are listed in the United States must keep books that accurately and fairly reflect the transactions of the corporation and maintain a system of adequate internal accounting controls. Yes Accounting Reporting Standards No No Extra Prohibitions Source: Audit Director Roundtable, “The Foreign Corrupt Practices Act Prepackaged Presentation,” Corporate Executive Board, 2008.The Foreign Corrupt Practices Act Prepackaged Presentation

Audit Director Roundtable, Finance Practice © 2009 Corporate Executive Board. All Rights Reserved. ADR1B2ZMP1 2 Five Elements Constituting a Violation Who Potentially applies to any individual, firm, officer, director, employee, or agent of the firm and any stockholder acting on behalf of the firm Encompasses any third party relationships such as foreign affiliates and joint ventures Corrupt Intent Corrupt Intent Person making or authorizing the payment must have corrupt intent Payment must be intended to prompt the recipient to misuse his official position to direct business wrongfully to the payer or any other person Offer of a corrupt payment can constitute a violation even if the corrupt act does not succeed Payment Prohibits paying, offering, or promising to pay money or anything of value Extends to corrupt payments to: A foreign official A foreign political party or party official Any candidate for foreign political office Recipient Payment must be made for the purpose of: influencing, inducing or otherwise affecting an official act, decision or omission thereof securing an improper advantage assisting in obtaining or retaining business for any person or entity Business Purpose Test Business Purpose Test With respect to the anti-bribery prohibitions, there are 5 distinct elements which must be met to constitute a violation Source: Audit Director Roundtable, “The Foreign Corrupt Practices Act Prepackaged Presentation,” Corporate Executive Board, 2008.The Foreign Corrupt Practices Act Prepackaged Presentation

Audit Director Roundtable, Finance Practice © 2009 Corporate Executive Board. All Rights Reserved. ADR1B2ZMP1 3 Sanctions Against Noncompliance Business entities are subject to a fine up to $2 million dollars per violation. Officers, directors, employees, and agents of the firm can face fines up to $250,000 and/ or 5 years imprisonment per violation.* For both business entities and individuals, a civil action for a fine of $10,000 may be levied for violations.* For both business entities and individuals, a court may impose an additional fine not to exceed the greater of (i) the amount of gain as a result of the violation or (ii) a specified dollar amount.* Business entities may be fined up to $25 million. Employees that knowingly violate the provisions are subject to $5 million dollars in fines and 20 years’ imprisonment.* Business entities can be subject to civil penalties ranging from $50,000 to $500,000. For individuals, a civil action for a fine up to $100,000 may be levied for violations.* Violating Anti-bribery Provisions Violating Accounting Provisions Criminal Sanctions Civil Sanctions * Fines levied against individuals may not be paid by their employer or principal Enforced by the Department of Justice Enforced by the Securities and Exchange Commission (and DOJ in rare circumstances) There are both civil and criminal sanctions that can be brought against an individual and a corporation for violating FCPA’s anti-bribery or accounting laws Source: Audit Director Roundtable, “The Foreign Corrupt Practices Act Prepackaged Presentation,” Corporate Executive Board, 2008.The Foreign Corrupt Practices Act Prepackaged Presentation