The Foreign Corrupt Practices Act And the New International Norms

by Deming, Stuart H.

• ISBN13: 9781590313268
• ISBN10: 1590313267
• Format: Paperback
• Copyright: 2005-12-30
• Publisher: Natl Book Network

Summary

This book provides international business with an overview of the Foreign Corrupt Practices Act as well as the new international norms that bear on the prohibition of payments to foreign officials.

Table of Contents

About the Author	xi
Preface	xiii
Introduction	1	(4)
PART I: THE FOREIGN CORRUPT PRACTICES ACT
Overview of the Foreign Corrupt Practices Act	5	(2)
Two Mechanisms	6	(1)
Lack of Judicial Review	6	(1)
The Anti-Bribery Provisions	7	(14)
Scope and Jurisdiction	7	(3)
Issuers	8	(1)
Domestic Concerns	8	(1)
Any Other Person	9	(1)
Essential Elements	10	(5)
Payment, Offer, or Promise	10	(1)
Anything of Value	11	(1)
Foreign Official	11	(2)
Corrupt Intent	13	(1)
Influencing an Official Act	14	(1)
Obtain or Retain Business	14	(1)
Exceptions and Affirmative Defenses	15	(6)
Facilitating Payments	15	(1)
Bona Fide Business Expenditures	16	(2)
Local Law	18	(1)
Opinion Procedure	18	(3)
The Accounting and Record-Keeping Provisions	21	(8)
Scope and Jurisdiction	21	(1)
The Record-Keeping Provisions	22	(3)
Falsification of Books and Records	23	(1)
Misrepresentations to Auditors	24	(1)
The Internal Accounting Controls Provisions	25	(4)
Elements of an Internal Control System	25	(1)
Heightened Obligations	26	(1)
Broad Reach of Internal Accounting Control Provisions	27	(1)
Relationship with Compliance Programs	27	(2)
Vicarious Liability	29	(12)
The Anti-Bribery Provisions	29	(7)
Requisite Knowledge	30	(3)
Authorization	33	(1)
Control	34	(2)
The Accounting and Record-Keeping Provisions	36	(1)
Criminal Liability	37	(1)
Civil Liability	37	(1)
Other Forms of Vicarious Liability	37	(1)
Conspiracy	37	(1)
Aiding and Abetting	38	(1)
Knowledge of Juridical Entity	38	(3)
Enforcement	41	(52)
Criminal Investigations	42	(2)
Implications of the Record-Keeping Provisions	42	(1)
Penalties	43	(1)
Civil Enforcement Actions	44	(1)
No ``Knowing'' Requirement under Accounting and Record-Keeping Provisions	44	(1)
Penalties	44	(1)
Statutes of Limitations	45	(48)
Appendix I-A---Foreign Corrupt Practices Act	47	(22)
Appendix I-B---Record-Keeping Regulations	69	(2)
Appendix I-C---Opinion Procedure Regulations	71	(6)
Appendix I-D---SEC Staff Accounting Bulletin: No. 99---Materiality	77	(16)
PART II: THE NEW INTERNATIONAL NORMS
Overview of the New International Norms	93	(2)
The OECD Convention	95	(6)
Overview of OECD Convention	96	(1)
Scope and Jurisdiction	96	(1)
Foreign Official	96	(1)
Political Parties	96	(1)
Parastatals or State-Owned Enterprises	97	(1)
Transfers of Value	97	(1)
Intent and Vicarious Liability	97	(1)
Sanctions and Corporate Criminal Responsibility	98	(1)
International Cooperation	98	(1)
Monitoring and Follow-Up	99	(1)
Outstanding Issues	99	(2)
Books and Records	99	(1)
Political Parties	100	(1)
Accession	100	(1)
Inter-American Convention Against Corruption	101	(4)
Overview of the Inter-American Convention	101	(1)
Public Official	102	(1)
Passive Bribery	102	(1)
Transnational Bribery	102	(1)
Illicit Enrichment	103	(1)
Cooperation	103	(1)
Monitoring	103	(2)
Council of Europe Criminal Law Convention	105	(6)
Overview of the CoE Criminal Law Convention	105	(1)
Public Official	106	(1)
Bribery	106	(1)
Transnational Bribery	106	(1)
Private-Sector/Commercial Bribery	107	(1)
Trading in Influence	107	(1)
Derivative Offenses	108	(1)
Corporate Liability	108	(1)
Monitoring	108	(1)
International Cooperation	109	(1)
Declarations and Reservations	109	(1)
Additional Protocol	109	(2)
Council of Europe Civil Law Convention	111	(4)
Private Right of Action	112	(1)
Statute of Limitations	112	(1)
Validity of Contracts	112	(1)
Protection of Employees	112	(1)
Annual Accounting and Audit	112	(1)
Cooperation	113	(1)
Reservations, Implementation, and Monitoring	113	(2)
United Nations Convention Against Corruption	115	(10)
Overview	116	(1)
Public Official	116	(1)
Corruption Offenses	116	(3)
Transnational Bribery	117	(1)
Money Laundering	118	(1)
Knowledge	118	(1)
Liability of Entities	118	(1)
Statutes of Limitations	119	(1)
Private Sector	119	(1)
Accounting Offenses	119	(1)
Tax Deductibility	119	(1)
Private Rights of Action	120	(1)
Preventive Measures	120	(1)
Public Officials	120	(1)
Civil Society	120	(1)
Asset Recovery	121	(1)
Cooperation	121	(1)
Monitoring	121	(4)
Other Developments	125	(222)
Multilateral Lending Institutions	125	(2)
European Union	127	(1)
OAU Corruption Convention	128	(1)
Non-Governmental Organizations	128	(219)
International Chamber of Commerce	128	(1)
Transparency International	129	(2)
Appendix II-A: Part 1---Convention on Combating Bribery of Foreign Officials in International Business Transactions	131	(8)
Appendix II-A: Part 2---Commentaries on the Convention on Combating Bribery of Foreign Officials in International Business Transactions	139	(8)
Appendix II-B---Inter-American Convention Against Corruption	147	(12)
Appendix II-C: Part 1---Council of Europe Criminal Law Convention on Corruption	159	(16)
Appendix II-C: Part 2---Explanatory Report on the Criminal Law Convention on Corruption	175	(40)
Appendix II-C: Part 3---Additional Protocol to the Council of Europe Criminal Law Convention on Corruption	215	(6)
Appendix II-C: Part 4---Explanatory Report on the Additional Protocol to the Council of Europe Criminal Law Convention on Corruption	221	(12)
Appendix II-D: Part 1---Council of Europe Civil Law Convention on Corruption	233	(8)
Appendix II-D: Part 2---Explanatory Report on the Council of Europe Civil Law Convention on Corruption	241	(18)
Appendix II-E: Part 1---United Nations Convention Against Corruption	259	(46)
Appendix II-E: Part 2---Interpretative Notes for the Official Records (Travaux Preparatoires) of the Negotiation of the United Nations Convention Against Corruption	305	(14)
Appendix II-F---World Bank Procurement Guidelines	319	(4)
Appendix II-G---World Bank Sanctions Committee Procedures	323	(10)
Appendix II-H---Web Sites Relevant to Anti-Corruption Issues	333	(14)
PART III: COMPLIANCE
Instituting Protective Measures	347	(16)
Avoiding the Issuance of a Subpoena	347	(2)
Disruptions Associated with Investigations	347	(1)
Perception	348	(1)
Impact of U.S. Federal Sentencing Guidelines	349	(1)
Compliance Programs	350	(3)
Caremark Decision	350	(1)
General Considerations	350	(2)
Key Components	352	(1)
Affiliates	353	(1)
Performing Due Diligence	353	(6)
Documentation	354	(1)
Red Flags	355	(4)
Written Agreements	359	(3)
Termination Provisions	359	(1)
Cultural Sensitivities	359	(1)
Facilitating Payments	359	(1)
Structuring Agreements	360	(2)
Withdrawal	362	(1)
Responding To Potential Violations	363	(10)
Identifying Potential Violations	363	(4)
Assessing the Situation	364	(1)
Internal Investigations	364	(2)
Disclosure Issues	366	(1)
SEC Disclosure Policy	367	(2)
Seriousness of Violation	367	(1)
Cooperation	368	(1)
Justice Department Disclosure Policy	369	(1)
Disclosures in Financial Statements	369	(4)
Qualitative Materiality	370	(1)
Contingent Liabilities	371	(2)
Other Considerations	373	(48)
New Disclosure Requirements	373	(3)
Auditor's Role in Detecting Fraud	374	(1)
Actions upon Discovery	375	(1)
Auditors' Duty to Detect Fraud	376	(2)
Representations of Management	377	(1)
Risk Factors	377	(1)
Evaluation of Compliance Programs	377	(1)
Material Misstatements	377	(1)
Disclosure Obligations	377	(1)
Scope of Application of SAS No. 99	378	(1)
The Sarbanes--Oxley Act	378	(2)
Whistle-Blower Protections	378	(1)
Expansion of Criminal Sanctions	379	(1)
Disclosure by Attorneys	379	(1)
Implications for Business, Employment, and Client Relationships	380	(2)
Public-Policy Exception to At-Will Employment	381	(1)
Enforcement of Contracts	381	(1)
Protected Information	381	(1)
Limitations on Government Contracts and Support	382	(1)
Alternative Sources of Assistance	383	(2)
Nongovernmental Assistance	383	(1)
Governmental Assistance	384	(1)
Conclusion	385	(36)
Appendix III-A---Sample Compliance Language	387	(8)
Appendix III-B---Prohibited Business Practices Policy	395	(6)
Appendix III-C: Part 1---Memorandum to Executives and Managers	401	(6)
Appendix III-C: Part 2---Memorandum to Chief Financial Officer	407	(2)
Appendix III-C: Part 3---Confirmation of Compliance---Short Form	409	(2)
Appendix III-C: Part 4---Confirmation of Compliance---Long Form	411	(4)
Appendix III-D: Part 1---Special Guidelines for the Conduct of International Business	415	(4)
Appendix III-D: Part 2---Certification of Compliance with Special Guidelines for the Conduct of International Business	419	(2)
Index	421