Business Advisory: Do you know Your Distributor? International Business Relationships Due Diligence as Part of Corporate
9/1/2002
This advisory discusses that federal investigators are now even looking at public companies overseas operations for possible violations of the Foreign Corrupt Practices Act (FCPA). Companies should be aware of violations of the FCPA as it is a criminal statute with civil dimensions. The advisory outlines a simple due diligence checklist recommended for companies to follow to ensure compliance with the FCPA. It includes: 1) Where in the world is the company dealing? 2) What are the company's potential foreign business partner's credentials? 3) Does the company have any business references on this political partner? 4) Is the proposed compensation arrangement reasonable under the totality of the circumstances? 5) Do a company's international business agreements contain FCPA safeguards?
