The Foreign Corrupt Practices Act

The Foreign Corrupt Practices Act (FCPA) is an important United States federal law which prohibits the bribery of foreign government officials by US citizens and their associates to obtain or retain business. The Act also demands the fair and accurate recording of corporate payments to ensure a system of internal controls and corporate accountability among companies operating internationally. Understanding the Act and complying with its requirements are essential measures for US businesses wishing to work successfully and lawfully in emerging markets.

The price of FCPA non-compliance can far outweigh the cost of preventative action. Since the law was enacted in 1977, there have been notable cases of US companies being severely punished for contravening the Act. Penalties for FCPA violations range from criminal and civil charges to bans on conducting business with the US government. Furthermore, the Act can prescribe substantial monetary fines and the strict compliance-monitoring of a violator's future business activities.

Pasco helps major US corporations to establish preventative measures to understand and satisfy FCPA requirements and to know how to respond when these requirements have not been met. Pasco has experience in operating across a broad-spectrum of challenging business environments. We have conducted over 750 due diligence investigations in the Middle East, Africa and Eastern Europe on behalf of major US corporations seeking to comply with the terms of the FCPA.

Through our extensive experience and international network of contacts and human resources, Pasco is able to implement an in-depth risk assessment of our Clients' potential business partners across the globe. This is a vital means through which to determine any red flag linkages across the supply chain and to have real-time access to critical information.

These red flags can relate to issues of reputation, illicit action, corruption, operational verification and adverse exposure to government institutions or officials. An assessment of these issues allows us to determine the risks, inherent or potential, that may confront our Clients.

In doing so, we are able to ensure that our Clients' remain compliant by not engaging with high-risk business partners or associates and that their business interests are protected at all times. As part of our compliance-driven services, Pasco also provides our Clients with FCPA training and guidance for members of their global staff.

We are able to assist and guide your business through the challenges of operating in foreign business environments. You imagine the possibilities, we manage the risks.