Which are affirmative defenses available under the FCPA?

The FCPA’s anti-bribery provisions contain two affirmative defenses: (1) that the payment was lawful under the written laws of the foreign country, or “the local law defense,” and (2) that the money was spent as part of demonstrating a product or performing a contractual obligation, the “reasonable and bona fide …

What are the penalties for FCPA violations?

As of January 15, 2022, companies violating the FCPA’s accounting provisions face civil penalties of $103,591 to $1,035,909 per violation. Individuals can be fined $10,360 to $207,183 per violation.

Can you go to jail for violating FCPA?

For individuals convicted of FCPA violations, penalties can include: Up to five years in imprisonment. Up to $100,000 in criminal penalties. Up to $10,000 in civil penalties.

Does the FCPA apply to local agents?

The FCPA can apply to prohibited conduct anywhere in the world and extends to publicly traded companies and their officers, directors, employees, stockholders, and agents.

What are the two provisions of the FCPA?

The FCPA has two primary provisions: (1) an anti-bribery provision which makes it unlawful for a U.S. company or citizen, and certain foreign issuers of securities, to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business and (2) an accounting provision which requires companies …

Who is covered by the FCPA?

Who Is Covered by the FCPA? The FCPA applies to two broad categories of persons: those with formal ties to the United States and those who take action in furtherance of a violation while in the United States. U.S. “issuers” and “domestic concerns” must obey the FCPA, even when acting outside the country.

What was the maximum fine for a US corporation under the FCPA?

Civil Penalties Each anti-bribery provision violation by a corporation, other business, or individual incurs a maximum fine of $16,000. Each accounting provision violation is penalized based on the specific offense.

What happens if you break the Foreign Corrupt Practices Act?

A covered individual or entity that violates the FCPA can be subject to criminal charges by the DOJ, which might lead to imprisonment or a fine,in addition to penalties by the SEC of up to $500,000 or the amount by which the entity profited from the offense.

Who is a foreign official under the FCPA?

A “foreign official” is defined very broadly under the FCPA. The official can be employee or agents of a foreign government; an official need not be high-ranking. The following persons would likely qualify as foreign officials: Administrators and faculty at foreign state universities.

What is a bribe under FCPA?

Bribery. According to FCPA Section 30A(a), it is prohibited for an issuer to make a corrupt “offer, payment, promise to pay, or authorization of the payment of any money, or offer, gift, promise to give, or authorization of the giving of anything of value” to a foreign official.

Who is considered a foreign officials under FCPA?

“Foreign official” is defined very broadly under the FCPA. It includes all employees of non-U.S. national, state, provincial, and local governments and all their departments and agencies, from high-level officials to the low-level employees.

What payments are allowed under FCPA?

The FCPA permits companies to cover “reasonable and bona fide” travel expenses for foreign officials conducting business with the company. It is legal to pay for the travel expenses of an official for things like conferences, negotiations, product demonstrations, sales pitches, training, and the like.