The Foreign Corrupt Practices Act: A cautionary tale

Description

Abstract: Public companies planning to expand internationally — particularly into “high-risk” markets — should be wary of the FCPA. This was enacted to make it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. This article discusses the Act and reveals the fate of one company that violated it. A sidebar explains how a solid FCPA compliance program and strong system of internal controls can help reduce or avoid penalties in the event of a violation.