Anti-Bribery and Corruption Investigations

Foreign Corrupt Practices Act Assessment

Ingenium Investigators assess compliance programs looking for risk indicators

As anti-corruption enforcement is stepped up around the world, international corporations are coming under increasing scrutiny over their business conduct. In the United States, the number of actions brought by the government has increased dramatically since the Securities and Exchange Commission and the Department of Justice made enforcement of the Foreign Corrupt Practices Act (FCPA) a priority.

FCPA

The US Foreign Corrupt Practices Act (FCPA) of 1977 is the most widely enforced anti-corruption law. It is the first to introduce corporate liability, responsibility for third parties and extraterritoriality for corruption offences, meaning companies and persons can be held criminally and civilly responsible for corruption offences committed abroad. The Act also applies to any act by U.S. businesses, foreign corporations trading securities in the U.S., American nationals, citizens, and residents acting in furtherance of a foreign corrupt practice whether or not they are physically present in the U.S. This is considered the nationality principle of the act. Whenever businesses decide to follow the unethical road, there are consequences including high financial penalties. Any individuals that are involved in those activities may face prison time. This act was passed 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.

  • Criminal penalties
    • Up to $2 million per violation for companies
    • Up to $250,000 fine and 5 years in prison for individuals
    • Alternative fines equal to twice amount of total profit
  • Civil penalties
    • Injunctions against future violations
    • Civil monetary penalties
    • Collateral consequences (e.g., debarment)

A company cannot indemnify an officer, director, employee or consultant for fines assessed in violation of the FCPA and insurance will not cover such fines or penalties.

A sound system of compliance controls is essential in protecting your firm from business, regulatory and reputational risks. A strong compliance function will also become a factor of increasing importance which will define and set a firm apart from its competition.

The Ingenium Consulting Group Chicago creates and implements compliance programs, and conducts internal investigations, assessments and due diligence on potential merger and acquisition targets, joint venture partners and third parties. We also counsel clients on compliance issues that arise from international licensing, sales and marketing and are well-versed in laws that relate to dealing with government officials.

Ingenium has the expertise to assist your organization in establishing effective compliance controls. Ingenium’s Asset Management and Regulatory team includes a group of experienced professionals with diverse backgrounds in the asset management industry. Our mission is to assist asset managers in identifying, assessing, and controlling business, operational, and compliance risk in an efficient and cost-effective manner.

Get the answers you need, call the professionals at Ingenium Consulting Chicago for a free confidential consultation.