SEC Foreign Corrupt Practices Act Guide

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SEC Publishes a Foreign Corrupt Practices Act Resources Guide

The United States Securities and Exchange Commission (“SEC”) published a new resource guide for the Foreign Corrupt Practices Act (“FCPA”).  The FCPA prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business.  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. Agents can include third party agents, consultants, distributors, joint-venture partners, and others.

The FCPA also requires issuers to maintain accurate books and records and maintain adequate internal controls to provide reasonable assurances that transactions are executed and assets are accessed and accounted for in accordance with management’s authorization.

FCPA sanctions can be significant.  The SEC may bring civil enforcement actions against issuers and their officers, directors, employees, stockholders, and agents for violations of the anti-bribery or accounting provisions of the FCPA. Companies and individuals that have committed violations of the FCPA may have to disgorge their ill-gotten gains plus pay prejudgment interest and substantial civil penalties.

The sanctions for FCPA violations can be significant. The SEC may bring civil enforcement actions against issuers and their officers, directors, employees, stockholders, and agents for violations of the anti-bribery or accounting provisions of the FCPA.  Companies and individuals found in violation of the FCPA may have to disgorge their ill-gotten gains plus pay prejudgment interest and substantial civil penalties. Companies may also be subject to oversight by an independent consultant.

The SEC, among other things, enforces the Foreign Corrupt Practices Act and under the new SEC whistleblower program allows those who come forward with Foreign Corrupt Practices violations to share in any penalty imposed by the SEC.

The SEC report is available here:  http://www.sec.gov/spotlight/fcpa.shtml

McEldrew Young represents whistleblowers globally reporting to the U.S. Government. For a free confidential consultation with one of our Foreign Corrupt Practices Act whistleblower lawyers, please call Eric L. Young, Esquire at 1-800-590-4116 or contact us.