Summary
This information paper discusses compliance programs under the Foreign Corrupt Practices Act (FCPA), focusing on minimizing liability for payments to foreign officials. It outlines the historical context of the FCPA, noting its limited enforcement until a significant increase in prosecutions began around 2002, making it a critical concern for international businesses. The paper illustrates the liability associated with the FCPA's prohibition on payments to foreign officials, using the case of Alcoa Inc. as an example. The Alcoa case highlights how the company faced substantial fines after funneling bribes through a middleman to the Bahraini royal family. The paper details the FCPA's anti-bribery provisions and the importance of a compliance program tailored to a company's specific risks. It emphasizes the need for a culture of compliance, management commitment, a clear code of conduct, proper oversight, risk assessment, and effective training to mitigate risks associated with foreign bribery.
