TreatiseTreatise

Doing Business Under the Foreign Corrupt Practices Act (2nd Edition)

 by Donald J Zarin
 
 Copyright: 2013-2016
 Last Updated: October 2016

 Product Details >> 

Product Details

  • ISBN Number: 9781402420696
  • Page Count: 586
  • Number of Volumes: 1
  •  

Doing business overseas means learning new ways of negotiating. It also means understanding when an accepted and even expected “gift” to the other party will be considered a bribe under the U.S. Foreign Corrupt Practices Act (FCPA).

The second edition of Doing Business Under the Foreign Corrupt Practices Act provides vital legal and procedural information that helps corporations and attorneys:

  • Develop internal compliance programs that detect and prevent illegalities
  • Spot cautionary “red flags” and sidestep potential legal pitfalls in planned business steps
  • Draft compliant business agreements and contracts using included model contract provisions
  • Satisfy FCPA’s complicated accounting standards, and
  • Avoid RICO violations, wire and mail fraud, and other legal missteps.
The number and size of recoveries under the FCPA have significantly grown, and the whistleblower provision in the Dodd-Frank Act increases potential recoveries for actions as well. Doing Business Under the Foreign Corrupt Practices Act, Second Edition, updates readers on recent enforcement actions, reminding companies and their counsel of the harsh penalties for falsified books and records, mischaracterized payments, fictitious invoices, insufficient internal accounting controls, and other charges. This treatise is an invaluable resource for in-house and outside corporate counsel, corporate executives and managers, and anyone who is responsible for business relationships with overseas partners or customers.
  Table of Contents
Chapter 1: Introduction
  • § 1:1 : Introduction1-1
Chapter 2: Overview of the FCPA
  • § 2:1 : Introduction2-1
  • § 2:2 : Accounting Provisions2-1
  • § 2:3 : Foreign Payments Provisions2-6
Chapter 3: The Accounting Provisions
  • § 3:1 : The Books and Records Provision3-1
    • § 3:1.1 : Books, Records, and Accounts3-2
    • § 3:1.2 : Reasonable Detail3-4
    • § 3:1.3 : Accurately and Fairly Reflect the Transaction and Disposition of Assets3-11
    • § 3:1.4 : SEC Rules 13b2-1 and 13b2-23-16
      • [A] : Rule 13b2-13-16
      • [B] : Rule 13b2-23-19
  • § 3:2 : The Internal Accounting Controls Provision3-23
    • § 3:2.1 : The Requisite Standards3-24
    • § 3:2.2 : The Internal Accounting Control Objectives3-28
      • [A] : Management Authorization3-28
      • [B] : Preparation of Financial Statements3-32
      • [C] : Accountability for Assets3-37
    • § 3:2.3 : The Evolution of the Internal Accounting Control Concept3-39
  • § 3:3 : Applicability to Foreign Subsidiary3-48
  • § 3:4 : National Security Exemption3-54
Chapter 4: The Foreign Payments Provisions
  • § 4:1 : U.S. Companies and U.S. Citizens4-2
    • § 4:1.1 : Issuers4-2
    • § 4:1.2 : Domestic Concern4-4
    • § 4:1.3 : Officer, Director, Employee, Agent, or Stockholder4-5
    • § 4:1.4 : Foreign Natural and Legal Persons4-12
  • § 4:2 : Jurisdiction4-18
    • § 4:2.1 : Instrumentality of Interstate Commerce4-18
    • § 4:2.2 : Nationality Jurisdiction4-21
  • § 4:3 : Corruptly4-22
  • § 4:4 : Foreign Official4-26
    • § 4:4.1 : Officer or Employee4-28
    • § 4:4.2 : Agency or Instrumentality of Foreign Government4-31
    • § 4:4.3 : Acting For or On Behalf Of4-39
    • § 4:4.4 : Public International Organization4-41
  • § 4:5 : Foreign Political Party or Official Thereof or Any Candidate for Foreign Political Office4-42
  • § 4:6 : Anything of Value4-43
  • § 4:7 : Payments to Third Parties4-48
  • § 4:8 : Knowledge Standard4-50
    • § 4:8.1 : Repeal of “Reason to Know” Standard4-50
    • § 4:8.2 : Current Definition of Knowledge4-51
  • § 4:9 : Standard of Authorization4-57
  • § 4:10 : Influencing or Inducing an Act or Decision of a Foreign Official4-60
  • § 4:11 : Obtaining or Retaining Business or Directing Business to Any Person4-63
  • § 4:12 : Conclusion4-66
Chapter 5: Exceptions and Affirmative Defenses
  • § 5:1 : Facilitating Payments5-1
  • § 5:2 : Travel and Lodging Expenditures5-5
  • § 5:3 : Payments Lawful in Foreign Country5-11
Chapter 6: Recurring Issues
  • § 6:1 : Introduction6-1
  • § 6:2 : Corporate Liability for Conduct of Employees, Agents, and Distributors6-2
    • § 6:2.1 : Corporate Liability for Actions of Officers and Employees6-2
    • § 6:2.2 : Corporate Liability for Actions of Foreign Sales Agents6-5
    • § 6:2.3 : Corporate Liability for Conduct of Distributors6-8
  • § 6:3 : Controlled Versus Noncontrolled Foreign Subsidiaries6-11
  • § 6:4 : Relationship of U.S. Subcontractor and Foreign Prime Contractor6-13
    • § 6:4.1 : Knowledge of Bribe After Contract Award6-14
    • § 6:4.2 : Knowledge of Bribe During Contract Negotiations6-16
  • § 6:5 : Gifts and Business Entertainment6-16
    • § 6:5.1 : Gifts6-17
    • § 6:5.2 : Business Entertainment Expenditures6-19
  • § 6:6 : Donations or Concessions to Governmental Entities6-22
  • § 6:7 : Governmental Entity as Agent or Joint Venture Partner6-25
Chapter 7: Hypothetical Case Studies
  • § 7:1 : Introduction7-1
  • § 7:2 : The Desalination Project7-2
    • § 7:2.1 : Facts7-2
    • § 7:2.2 : Discussion7-2
  • § 7:3 : The Malabus Case7-4
    • § 7:3.1 : Facts7-4
    • § 7:3.2 : Discussion7-5
  • § 7:4 : The Customs Broker7-6
    • § 7:4.1 : Facts7-6
    • § 7:4.2 : Discussion7-7
  • § 7:5 : The TUK Venture7-8
    • § 7:5.1 : Facts7-8
    • § 7:5.2 : Discussion7-8
  • § 7:6 : The Gift7-9
    • § 7:6.1 : Facts7-9
    • § 7:6.2 : Discussion7-10
  • § 7:7 : The Nuclear Case7-10
    • § 7:7.1 : Facts7-10
    • § 7:7.2 : Discussion7-11
  • § 7:8 : The Turkmed Matter7-12
    • § 7:8.1 : Facts7-12
    • § 7:8.2 : Discussion7-12
  • § 7:9 : The Nidol Agreement7-13
    • § 7:9.1 : Facts7-13
    • § 7:9.2 : Discussion7-14
Chapter 8: Fines, Penalties, and Other Sanctions
  • § 8:1 : Violation of FCPA8-1
    • § 8:1.1 : The Accounting Provisions8-1
    • § 8:1.2 : The Bribery Provisions8-7
  • § 8:2 : Ineligibility for Government Programs8-12
    • § 8:2.1 : U.S. Government Procurement8-13
    • § 8:2.2 : Export Licenses for Defense Articles8-14
  • § 8:3 : Tax Consequences8-16
    • § 8:3.1 : Disallowance of Deductions8-17
    • § 8:3.2 : Inclusion of Unlawful Payments in Taxable Income8-17
Chapter 9: Contract Language; and Appendices 9A-9D
  • § 9:1 : Addressing FCPA Issues in the Contract9-1
  • § 9:2 : Sales Agent/Distributor/Consultant Agreements9-3
    • § 9:2.1 : Prohibited Payment9-3
    • § 9:2.2 : Exception for Facilitating Payment9-4
    • § 9:2.3 : Termination9-4
    • § 9:2.4 : Audit Rights9-5
    • § 9:2.5 : Financial Interest of Foreign Official9-6
    • § 9:2.6 : U.S. Company Not Required to Take Certain Action9-7
    • § 9:2.7 : Payment9-7
    • § 9:2.8 : Reimbursement of Expenses9-7
  • § 9:3 : Joint Venture Agreements9-8
  • § 9:4 : Consortium Agreements9-9
  • Appendix 9A : Model Provisions for Agency or Consultancy AgreementApp. 9A-1
  • Appendix 9B : Model Provisions for Distributorship AgreementApp. 9B-1
  • Appendix 9C : Model Provisions for Foreign Joint Venture/ Shareholder AgreementApp. 9C-1
  • Appendix 9D : Model Provisions for Consortium AgreementApp. 9D-1
Chapter 10: Compliance Programs
  • § 10:1 : The Importance of an Effective Compliance Program10-1
  • § 10:2 : Benchmark Standards of an Anticorruption Compliance Program10-5
  • § 10:3 : Elements of an Effective Anticorruption Compliance Program10-9
  • § 10:4 : Voluntary Disclosure10-16
Chapter 11: Other U.S. Laws Applicable to Overseas Bribery
  • § 11:1 : Introduction11-1
  • § 11:2 : Aiding and Abetting11-1
  • § 11:3 : Conspiracy11-4
  • § 11:4 : Wire and Mail Fraud11-9
  • § 11:5 : The Travel Act11-14
  • § 11:6 : Certification/Reporting Violations11-18
    • § 11:6.1 : U.S. Export-Import Bank11-18
    • § 11:6.2 : Foreign Military Sales11-19
    • § 11:6.3 : ITAR Reporting Requirements11-20
  • § 11:7 : RICO11-23
  • § 11:8 : Private Right of Action for Violation of FCPA11-28
    • § 11:8.1 : Foreign Payments Provisions11-29
    • § 11:8.2 : Accounting and Record-Keeping Provisions11-31
  • § 11:9 : Money Laundering11-33
Chapter 12: The FCPA Opinion Procedure
Chapter 13: Multilateral Efforts Concerning Transnational Bribery of Foreign Officials
  • § 13:1 : Introduction13-2
  • § 13:2 : The OECD13-2
    • § 13:2.1 : Prohibited Conduct13-3
    • § 13:2.2 : Applicable to “Any Person”13-3
    • § 13:2.3 : Offer, Promise, or Payment, Directly or Indirectly13-3
    • § 13:2.4 : Foreign Public Official13-4
    • § 13:2.5 : Jurisdiction13-4
    • § 13:2.6 : Scope of Business Activity13-4
    • § 13:2.7 : Sanctions13-5
    • § 13:2.8 : Exception for Facilitating Payments13-5
    • § 13:2.9 : Accounting Requirements13-5
    • § 13:2.10 : Mutual Legal Assistance and Extradition13-6
    • § 13:2.11 : Monitoring and Follow-Up13-6
  • § 13:3 : The OAS13-8
  • § 13:4 : The ICC13-9
  • § 13:5 : The World Bank Group13-10
  • § 13:6 : The Inter-American Development Bank13-13
  • § 13:7 : The IMF13-16
  • § 13:8 : The African Development Bank13-17
  • § 13:9 : The Council of Europe13-19
  • § 13:10 : The Asian Development Bank13-20
  • § 13:11 : The United Nations13-21
  • § 13:12 : The African Union13-22
  • § 13:13 : Arab Convention to Fight Corruption13-23
  • § 13:14 : The Islamic Development Bank13-23
  • § 13:15 : Conclusion13-24
Appendix A: Foreign Corrupt Practices Act
Appendix B: Department of Justice FCPA Review Procedure Releases and Opinion Procedure Releases; and Appendices B1-B60
  • App. B1 : Support for Dependents of Government Officials Release No. 80-01 (Oct. 29, 1980)App. B-7
  • App. B2 : Employment of Candidate for Foreign Political Office Release No. 80-02 (Oct. 29, 1980)App. B-9
  • App. B3 : Proposed Contract with Lawyer Release No. 80-03 (Oct. 29, 1980)App. B-9
  • App. B4 : Business Arrangement with Saudi Entity Related to Government Customer Release No. 80-04 (Oct. 29, 1980)App. B-13
  • App. B5 : Consultant/Business Arrangement with Multinational Entity Release No. 81-01 (Nov. 25, 1981)App. B-15
  • App. B6 : Sample Food Packages to Soviet Ministry Release No. 81-02 (Dec. 11, 1981)App. B-21
  • App. B7 : Travel, Lodging and Entertainment for Promotional Tour Release No. 82-01 (Jan. 27, 1982)App. B-23
  • App. B8 : Payment to Government Employee As “Finder’s Fee” for Government Contract Release No. 82-02 (Feb. 18, 1982)App. B-25
  • App. B9 : Payment of Commission to Sub-Unit of Yugoslavian Government Release No. 82-03 (Apr. 22, 1982)App. B-27
  • App. B10 : Payment of Agency Commission to Brother of Foreign Government Official Release No. 82-04 (Nov. 11, 1982)App. B-29
  • App. B11 : Agency Agreement with Sudanese Company with Ties to the Government Release No. 83-01 (May 12, 1983)App. B-31
  • App. B12 : Promotional Tour Expenses for Manager of Foreign Government Entity Release No. 83-02 (July 26, 1983)App. B-33
  • App. B13 : Promotional Expenses for Singapore Government Official Release No. 83-03 (July 26, 1983)App. B-35
  • App. B14 : Marketing Representative Arrangement with Entity Whose Principals Have Ties to Foreign Head-of-State Release No. 84-01 (Aug. 16, 1984)App. B-37
  • App. B15 : Representations by Agent After Indicating Bribes May Be Paid Release No. 84-02 (Aug. 20, 1984)App. B-41
  • App. B16 : Promotional Tour for French Government Officials Release No. 193-15 [85-01] (July 16, 1985)App. B-43
  • App. B17 : Agency Agreement with Former Government Official Release No. 85-02 (Action Taken Dec. 1985) (Released Jan. 1987)App. B-45
  • App. B18 : Agency Agreements with Foreign Legislators in Malaysia and Great Britain Release No. 86-01 (July 18, 1986)App. B-47
  • App. B19 : Sale of Product to Foreign Company for Resale to Foreign Government Release No. 87-01 (Dec. 17, 1987)App. B-49
  • App. B20 : Fees Paid to Agent of Government of Mexico to Participate in Debt Swap Release No. 88-01 (May 12, 1988)App. B-51
  • App. B21 : Training (Including Travel and Lodging) Provided to Pakistan Government Personnel Release No. 92-01 (Feb. 1992)App. B-53
  • App. B22 : Joint Venture Arrangement with Foreign Government-Owned Corporation Release No. 93-01 (Apr. 20, 1993)App. B-55
  • App. B23 : Agency Agreement with Government-Owned Entity Release No. 93-02 (May 11, 1993)App. B-57
  • App. B24 : Consulting Agreement with Director of State-Owned Foreign Enterprise Release No. 94-01 (May 13, 1994)App. B-59
  • App. B25 : Donation to Unrelated Foreign Medical Facility Upon Completion of Foreign Plant Acquisition Release No. 95-01 (Jan. 11, 1995)App. B-63
  • App. B26 : Business Arrangement with Newly Formed Foreign Government Officials As Investors Release No. 95-02 (Sept. 14, 1995)App. B-65
  • App. B27 : Joint Venture with Relative of Foreign Government Official Release No. 95-03 (Sept. 14, 1995)App. B-71
  • App. B28 : Training, and Related Travel and Lodging, to Be Provided to Foreign Government Officials Release No. 96-01 (Nov. 25, 1996)App. B-75
  • App. B29 : Marketing Representative Agreement with Foreign State-Owned Enterprise Release No. 96-02 (Nov. 25, 1996)App. B-77
  • App. B30 : Representative Agreement with Foreign Entity with Respect to Bid Process for Government Contact Release No. 97-01 (Feb. 27, 1997)App. B-81
  • App. B31 : Donation to Unrelated Construction of School in Same Area As Foreign Plant Release No. 97-02 (Nov. 5, 1997)App. B-85
  • App. B32 : Payment of Fines, Fees and Questionable Compensation Through Contractor to Nigerian Government Officials Release No. 98-01 (Feb. 23, 1998)App. B-87
  • App. B33 : Termination of Representation Agreement and Entry into Consultant Agreement and Teaming Agreement Release No. 98-02 (Aug. 5, 1998)App. B-89
  • App. B34 : Payments to Official During Leave of Absence Release No. 2000-01 (Mar. 29, 2000)App. B-93
  • App. B35 : Joint Venture with Foreign Company Release No. 2001-01 (May 24, 2001)App. B-97
  • App. B36 : Foreign Official As Shareholder and Chairman of Consortium Member Release No. 2001-02 (July 18, 2001)App. B-101
  • App. B37 : Comments Made by Dealer Suggesting Improper Payments Release No. 2001-03 (Dec. 11, 2001)App. B-103
  • App. B38 : Payment to Officials by a Subsidiary Made Prior to Acquisition Release No. 2003-01 (Jan. 15, 2003)App. B-105
  • App. B39 : Comparative Law Seminar Presented and Sponsored by U.S. Law Firm Release No. 2004-01 (Jan. 6, 2004)App. B-107
  • App. B40 : Consortium Seeking to Purchase Company Assured They Would Not Be Responsible for Company’s Conduct Release No. 2004-02 (July. 12, 2004)App. B-109
  • App. B41 : Sponsoring a Trip to the U.S. by 12 Officials of Chinese Ministry Release No. 2004-03 (June 14, 2004)App. B-115
  • App. B42 : Study Tour of Foreign Officials Release No. 2004-04 (Sept. 3, 2004)App. B-117
  • App. B43 : Foreign Corrupt Practices Act Review Release No. 06-01 (Oct. 16, 2006)App. B-119
  • App. B44 : Foreign Corrupt Practices Act Review Release No. 06-02 (Dec. 31, 2006)App. B-123
  • App. B45 : Foreign Corrupt Practices Act Review Release No. 07-01 (July 24, 2007)App. B-127
  • App. B46 : Foreign Corrupt Practices Act Review Release No. 07-02 (Sept. 11, 2007)App. B-129
  • App. B47 : Payment to Cover Litigation-Related Costs Release No. 07-03 (Dec. 21, 2007)App. B-133
  • App. B48 : Investment in Company Managing Public Services of Foreign Municipality Release No. 08-01 (Jan. 15, 2008)App. B-137
  • App. B49 : Potential FCPA Liability When Due Diligence Occurs Post-Acquisition Release No. 08-02 (June 13, 2008)App. B-153
  • App. B50 : Payment of Travel and Lodging Expenses of Foreign Officials Release No. 08-03 (July 11, 2008)App. B-161
  • App. B51 : Sample Medical Devices for Testing Release No. 09-01 (Aug. 3, 2009)App. B-165
  • App. B52 : Hiring a Foreign Official Release No. 10-01 (Apr. 19, 2010) Release No. 10-01 (Apr. 19, 2010)App. B-169
  • App. B53 : Grant to Local Microfinance Institution Release No. 10-02 (July 16, 2010) Release No. 10-02 (July 16, 2010)App. B-173
  • App. B54 : Payment to Registered Agent of a Foreign Government Release No. 10-03 (Sept. 1, 2010) Release No. 10-03 (Sept. 1, 2010)App. B-181
  • App. B55 : Payment of Travel Expenses for Two Foreign Officials Release No. 11-01 (June 30, 2011)App. B-187
  • App. B56 : Whether Royal Family Member Is a Foreign Official Release No. 12-01 (Sept. 18, 2012)App. B-191
  • App. B57 : Payment of Travel Expenses for Officials Release No. 12-02 (Oct. 18. 2012)App. B-201
  • App. B58 : Payment of Medical Expenses for Official’s Daughter Release No. 13-01 (Dec. 19, 2013)App. B-207
  • App. B59 : Purchase of Stock from Official Release No. 14-01 (Mar. 17, 2014)App. B-213
  • App. B60 : Liability for Pre-Acquisition Conduct Release No. 14-02 (Nov. 7, 2014)App. B-221
  Index

  Please click here to view the latest update information for this title: Last Update Information  
 

Share
Email
UPKEEP SERVICE
Your purchase will also sign you up for “Upkeep Service,” whereby you will receive future automatic shipments of updates, new editions and supplements to this edition, as they become available, for a 30-day preview. Updates, new editions and supplements published within 90 days of your purchase will be issued free of charge; all other updates will be subject to an additional charge if kept beyond the preview period, invoiced at the time of delivery. This service will continue until canceled by you at any time. See here.

  • FOLLOW PLI:
  • twitter
  • LinkedIn
  • GooglePlus
  • RSS

All Contents Copyright © 1996-2017 Practising Law Institute. Continuing Legal Education since 1933.

© 2017 PLI PRACTISING LAW INSTITUTE. All rights reserved. The PLI logo is a service mark of PLI.