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Chapter 1: |
Introduction |
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Chapter 2: |
Overview of the FCPA |
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- § 2:1 : Introduction2-1
- § 2:2 : Accounting Provisions2-1
- § 2:3 : Foreign Payments Provisions2-6
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Chapter 3: |
The Accounting Provisions |
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- § 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 13b2-23-20
- § 3:2 : The Internal Accounting Controls Provision3-24
- § 3:2.1 : The Requisite Standards3-25
- § 3:2.2 : The Internal Accounting Control Objectives3-29
- [A] : Management Authorization3-29
- [B] : Preparation of Financial Statements3-34
- [C] : Accountability for Assets3-39
- § 3:2.3 : The Evolution of the Internal Accounting Control Concept3-41
- § 3:3 : Applicability to Foreign Subsidiary3-50
- § 3:4 : National Security Exemption3-55
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Chapter 4: |
The Foreign Payments Provisions |
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- § 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 Stockholder4-6
- § 4:1.4 : Foreign Natural and Legal Persons4-8
- § 4:2 : Jurisdiction4-12
- § 4:2.1 : Instrumentality of Interstate Commerce4-12
- § 4:2.2 : Nationality Jurisdiction4-14
- § 4:3 : Corruptly4-16
- § 4:4 : Foreign Official4-19
- § 4:4.1 : Officer or Employee4-20
- § 4:4.2 : Agency or Instrumentality of Foreign Government4-23
- § 4:4.3 : Acting For or On Behalf Of4-32
- § 4:4.4 : Public International Organization4-33
- § 4:5 : Foreign Political Party or Official Thereof or Any Candidate for Foreign Political Office4-34
- § 4:6 : Anything of Value4-36
- § 4:7 : Payments to Third Parties4-40
- § 4:8 : Knowledge Standard4-43
- § 4:8.1 : Repeal of “Reason to Know” Standard4-43
- § 4:8.2 : Current Definition of Knowledge4-44
- § 4:9 : Standard of Authorization4-49
- § 4:10 : Influencing or Inducing an Act or Decision of a Foreign Official4-53
- § 4:11 : Obtaining or Retaining Business or Directing Business to Any Person4-55
- § 4:12 : Conclusion4-58
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Chapter 5: |
Exceptions and Affirmative Defenses |
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- § 5:1 : Facilitating Payments5-1
- § 5:2 : Travel and Lodging Expenditures5-5
- § 5:3 : Payments Lawful in Foreign Country5-10
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Chapter 6: |
Recurring Issues |
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- § 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 Entertainment6-17
- § 6:5.1 : Gifts6-17
- § 6:5.2 : Business Entertainment Expenditures6-19
- § 6:6 : Donations or Concessions to Governmental Entities6-21
- § 6:7 : Governmental Entity as Agent or Joint Venture Partner6-24
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Chapter 7: |
Hypothetical Case Studies |
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- § 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
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Chapter 8: |
Fines, Penalties, and Other Sanctions |
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- § 8:1 : Violation of FCPA8-1
- § 8:1.1 : The Accounting Provisions8-1
- § 8:1.2 : The Bribery Provisions8-6
- § 8:2 : Ineligibility for Government Programs8-10
- § 8:2.1 : U.S. Government Procurement8-10
- § 8:2.2 : Export Licenses for Defense Articles8-12
- § 8:3 : Tax Consequences8-14
- § 8:3.1 : Disallowance of Deductions8-14
- § 8:3.2 : Inclusion of Unlawful Payments in Taxable Income8-15
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Chapter 9: |
Contract Language; And Appendices 9A-9D |
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- § 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 : Termination9-5
- § 9:2.4 : Audit Rights9-6
- § 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 Agreements9-10
- 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
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Chapter 10: |
Compliance Programs; And Appendix 10A: Model Compliance Program; And Appendix 10B: Model Acknowledgment: Ethical Business Practices Policy |
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- § 10:1 : The Importance of an Effective Compliance Program10-1
- § 10:2 : Elements of a Compliance Program10-5
- § 10:2.1 : Policy Statement10-6
- § 10:2.2 : Manual of Business Ethics and Procedures10-7
- § 10:2.3 : Compliance Committee10-8
- § 10:2.4 : Compliance Coordinator10-9
- § 10:2.5 : Internal Controls and Record Keeping10-9
- § 10:2.6 : Education and Training Programs10-10
- § 10:2.7 : Employee Responsibility for Compliance10-10
- § 10:2.8 : Hotline10-11
- § 10:2.9 : Internal Audit10-11
- § 10:2.10 : Periodic Risk Assessments10-12
- § 10:2.11 : Voluntary Disclosure10-12
- Appendix 10A : Model Compliance ProgramApp. 10A-1
- Appendix 10B : Model Acknowledgment: Ethical Business Practices PolicyApp. 10B-1
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Chapter 11: |
Other U.S. Laws Applicable to Overseas Bribery |
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- § 11:1 : Introduction11-1
- § 11:2 : Aiding and Abetting11-1
- § 11:3 : Conspiracy11-3
- § 11:4 : Wire and Mail Fraud11-8
- § 11:5 : The Travel Act11-11
- § 11:6 : Certification/Reporting Violations11-15
- § 11:6.1 : U.S. Export-Import Bank11-16
- § 11:6.2 : Foreign Military Sales11-16
- § 11:6.3 : ITAR Reporting Requirements11-18
- § 11:7 : RICO11-21
- § 11:8 : Private Right of Action for Violation of FCPA11-25
- § 11:8.1 : Foreign Payments Provisions11-26
- § 11:8.2 : Accounting and Record-Keeping Provisions11-28
- § 11:9 : Money Laundering11-30
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Chapter 12: |
The FCPA Opinion Procedure |
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Chapter 13: |
Multilateral Efforts Concerning Transnational Bribery of Foreign Officials |
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- § 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 Indirectly13-4
- § 13:2.4 : Foreign Public Official13-4
- § 13:2.5 : Jurisdiction13-4
- § 13:2.6 : Scope of Business Activity13-5
- § 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 OAS13-7
- § 13:4 : The ICC13-8
- § 13:5 : The World Bank Group13-9
- § 13:6 : The Inter-American Development Bank13-12
- § 13:7 : The IMF13-13
- § 13:8 : The African Development Bank13-13
- § 13:9 : The Council of Europe13-14
- § 13:10 : The Asian Development Bank13-15
- § 13:11 : The United Nations13-15
- § 13:12 : The African Union13-17
- § 13:13 : Conclusion13-17
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Chapter 14: |
Appendix A: Foreign Corrupt Practices Act |
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Chapter 15: |
Appendix B: Department of Justice FCPA Review Procedure Releases and Opinion Procedure Releases |
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- App. B1 : Support for Dependents of Government OfficialsApp. B-5
- App. B2 : Employment of Candidate for Foreign Political OfficeApp. B-7
- App. B3 : Proposed Contract with LawyerApp. B-9
- App. B4 : Business Arrangement with Saudi Entity Related to Government CustomerApp. B-11
- App. B5 : Consultant/Business Arrangement with Multinational EntityApp. B-13
- App. B6 : Sample Food Packages to Soviet MinistryApp. B-19
- App. B7 : Travel, Lodging and Entertainment for Promotional TourApp. B-21
- App. B8 : Payment to Government Employee As “Finder’s Fee” for Government ContractApp. B-23
- App. B9 : Payment of Commission to Sub-Unit of Yugoslavian GovernmentApp. B-25
- App. B10 : Payment of Agency Commission to Brother of Foreign Government OfficialApp. B-27
- App. B11 : Agency Agreement with Sudanese Company with Ties to the GovernmentApp. B-29
- App. B12 : Promotional Tour Expenses for Manager of Foreign Government EntityApp. B-31
- App. B13 : Promotional Expenses for Singapore Government OfficialApp. B-33
- App. B14 : Marketing Representative Arrangement with Entity Whose Principals Have Ties to Foreign Head-of-StateApp. B-35
- App. B15 : Representations by Agent After Indicating Bribes May Be PaidApp. B-39
- App. B16 : Promotional Tour for French Government OfficialsApp. B-41
- App. B17 : Agency Agreement with Former Government OfficialApp. B-43
- App. B18 : Agency Agreements with Foreign Legislators in Malaysia and Great BritainApp. B-45
- App. B19 : Sale of Product to Foreign Company for Resale to Foreign GovernmentApp. B-47
- App. B20 : Fees Paid to Agent of Government of Mexico to Participate in Debt SwapApp. B-49
- App. B21 : Training (Including Travel and Lodging) Provided to Pakistan Government PersonnelApp. B-51
- App. B22 : Joint Venture Arrangement with Foreign Government-Owned CorporationApp. B-53
- App. B23 : Agency Agreement with Government-Owned EntityApp. B-55
- App. B24 : Consulting Agreement with Director of State-Owned Foreign EnterpriseApp. B-57
- App. B25 : Donation to Unrelated Foreign Medical Facility Upon Completion of Foreign Plant AcquisitionApp. B-61
- App. B26 : Business Arrangement with Newly Formed Foreign Government Officials As InvestorsApp. B-63
- App. B27 : Joint Venture with Relative of Foreign Government OfficialApp. B-69
- App. B28 : Training, and Related Travel and Lodging, to Be Provided to Foreign Government OfficialsApp. B-73
- App. B29 : Marketing Representative Agreement with Foreign State-Owned EnterpriseApp. B-75
- App. B30 : Representative Agreement with Foreign Entity with Respect to Bid Process for Government ContactApp. B-79
- App. B31 : Donation to Unrelated Construction of School in Same Area As Foreign PlantApp. B-83
- App. B32 : Payment of Fines, Fees and Questionable Compensation Through Contractor to Nigerian Government OfficialsApp. B-85
- App. B33 : Termination of Representation Agreement and Entry into Consultant Agreement and Teaming AgreementApp. B-87
- App. B34 : Payments to Official During Leave of AbsenceApp. B-91
- App. B35 : Joint Venture with Foreign CompanyApp. B-95
- App. B36 : Foreign Official As Shareholder and Chairman of Consortium MemberApp. B-99
- App. B37 : Comments Made by Dealer Suggesting Improper PaymentsApp. B-101
- App. B38 : Payment to Officials by a Subsidiary Made Prior to AcquisitionApp. B-103
- App. B39 : Comparative Law Seminar Presented and Sponsored by U.S. Law FirmApp. B-105
- App. B40 : Consortium Seeking to Purchase Company Assured They Would Not Be Responsible for Company’s ConductApp. B-107
- App. B41 : Sponsoring a Trip to the U.S. by 12 Officials of Chinese MinistryApp. B-113
- App. B42 : Study Tour of Foreign OfficialsApp. B-115
- App. B43 : Foreign Corrupt Practices Act Review Release No. 06-01 (Oct. 16, 2006)App. B-117
- App. B44 : Foreign Corrupt Practices Act Review Release No. 06-02 (Dec. 31, 2006)App. B-121
- App. B45 : Foreign Corrupt Practices Act Review Release No. 07-01 (July 24, 2007)App. B-125
- App. B46 : Foreign Corrupt Practices Act Review Release No. 07-02 (Sept. 11, 2007)App. B-127
- App. B47 : Payment to Cover Litigation-Related CostsApp. B-131
- App. B48 : Investment in Company Managing Public Services of Foreign MunicipalityApp. B-135
- App. B49 : Potential FCPA Liability When Due Diligence Occurs Post-AcquisitionApp. B-151
- App. B50 : Payment of Travel and Lodging Expenses of Foreign OfficialsApp. B-159
- App. B51 : Sample Medical Devices for TestingApp. B-163
- App. B52 : Hiring a Foreign Official Release No. 10-01 (Apr. 19, 2010)App. B-167
- App. B53 : Grant to Local Microfinance Institution Release No. 10-02 (July 16, 2010)App. B-171
- App. B54 : Payment to Registered Agent of a Foreign Government Release No. 10-03 (Sept. 1, 2010)App. B-179
- App. B55 : Payment of Travel Expenses for Two Foreign Officials Release No. 11-01 (June 30, 2011)App. B-185
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Chapter 16: |
Index to Doing Business Under the Foreign Corrupt Practices Act |
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