|
It is or crucial importance for any company doing business internationally to have an FCPA Compliance Program in place. The presence of a strong, personalized and well implemented compliance program will serve a number of needs. First, it will help prevent violations of the FCPA by training employees and putting in place procedures to check foreign payments and partners. Second, it will assist a company in creating a culture of compliance that can extend into all areas of the business. Finally, it assists in demonstrating to the goverment enforcement agencies, should a violation take place, that the payments were not made with the company's cpmstructive knowledge, i.e. management was not turning a blind eye to the risk of payments being made.
|
A compliance program should always be tailored to the specific needs, size, and risk of an individual company. This is a step that needs to involve experienced professionals, likely attorneys, who know how to evaluate your company's risk versus the costs of designing and implementing the program. There are a number of steps that should probably be included in any compliance program. These include:
Background Checks on Foreign Agents/Partners
Statement of Company Policy to Comply With the FCPA
Education and Training for Relevant Personnel
Periodic Review and Updates to the Compliance Program
Periodic Certifications
Contract Provisions for Compliance in Foreign Agreements
Components of a Good Compliance Program
1. Anti-Bribery PolicyImplement an Anti-Bribery Policy. The Policy should contain all necessary language to clearly and thoroughly demonstrate a corporate culture of compliance with the FCPA and other foreign anti-bribery acts and laws.
The Policy should contain, in addition to other topics, at least the following:
i. Outline the prohibitions of the FCPA and other foreign anti-corruption regulations in plain language easily understood by all employees worldwide.
ii. Guidelines on third party Practice. The policy should contain language that the Company will require to be included in all third party contracts, including contracts with agents, distributors, lobbyists, joint venture partners and other foreign intermediaries. In addition, it should spell out the required and comprehensive procedures for vetting and approving all third party partners with the hope of eliminating any business partners not interested in compliance.
iii. Identify FCPA officers. The Company should designate FCPA officers for all sectors of the business. These FCPA officers will be responsible for overseeing implementation of compliance initiatives in their sectors and for focusing attention on any suspected improper behavior. These FCPA officers will work in conjunction with Company ombudsmen and will monitor a Hotline for employee tips with regards to improper behavior.
iv. Provide firm and clear guidance on the exceptions found in anti-corruption statutes. Put in place policies and guidelines that will simplify common grey areas such as permissible spending on meals and entertainment with government officials and acceptable amounts for facilitating payments.
2. Training
Any complaince program should probably include Training. Depending on the Company's size and needs, live, online and written training can be conducted for a wide range of directors, officers, executives and employees, both domestically and abroad. It is important for a company to identify and target employees to receive appropriate training. This can include:
At Risk Employees:
a. All sales and marketing employees with international responsibility
b. Any employees that interact with government officials as part of their duties.
c. Employees who handle the partnerships with third parties.
Gatekeepers
a. Finance, everyone involved with the distribution of funds.
b. Legal.
c. Human Resources with international responsibility.
Audit Teams
Supply Chain Employees
|
|