Foreign Corrupt Practices Act (FCPA)

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Foreign Corrupt Practices Act (FCPA) 2017-12-08T15:56:55+00:00

Increased global visibility has led to significant growth in opportunities for international business, including consolidations and expansion. At Artifice, we understand that with these opportunities come new risks to companies, their executives, officers, board members and employees.

Among the most serious of those risks is noncompliance with the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act (the UK Act). These laws impose significant regulatory requirements on the businesses they cover, and failure to meet those requirements can result in criminal consequences.

From a regulatory perspective, all “issuers” and foreign subsidiaries of issuers (basically any company that files a report with the Securities and Exchange Commission (SEC)), must keep their books, records and accounts in sufficient and reasonable detail to accurately capture and reflect transactions and dispositions of assets. Also, these entities must have adequate internal accounting controls to reasonably assure the accuracy of their books and records and prevent unauthorized and/or illegal activities.

On the criminal side, these laws are designed to prohibit the paying or giving of anything of value to foreign officials for the purpose of influencing official actions. While that sounds pretty straightforward in theory, in practice there is a great deal of complexity, subtlety and nuance that must be considered when determining what behaviors may have criminal consequences. Failure to understand these complexities and, to incorporate adequate controls and compliance programs to ensure compliance can be a costly mistake. As if that weren’t enough cause for concern, governments are increasingly seeking to prosecute individuals for violations of the FCPA, and those convicted are being sentenced to prison.

To help deter and prevent FCPA violations in day-to-day operations, businesses with expansive and decentralized organizations, joint ventures and affiliate/associate business relationships require well-coordinated and effective oversight, training and controls. They also require recurring audits and responsive internal investigations in the event of suspected or alleged violations.

Beyond day-to-day work, the economic climate often presents significant opportunities for mergers and acquisitions (M&A). In some instances, the parties to a merger or acquisition may not have corporate compliance programs and standards sufficient to defend against government scrutiny should FCPA issues arise. Pre-acquisition forensic accounting techniques, compliance assessments and forensic internal control assessments by an independent third-party expert can help mitigate such risks in M&A transactions.

Artifice’s experienced professionals are intimately familiar with what government enforcement agencies are looking for as it relates to effective corporate compliance programs.

Our professional advisors have been engaged and relied upon by the DOJ to assess the design and effectiveness of corporate compliance programs as part of government investigations of criminal activities. As independent corporate monitors, we have advised on and monitored a company’s remedial measures to create or enhance its corporate compliance program in accordance with the terms of its agreement with the government.

Our professionals routinely assess corporate compliance programs. Sometimes these assessments are proactive, focusing on their effectiveness either individually or as part of a larger enterprise-wide risk assessment.  In other cases, it is reactive, as part of an internal investigation.  In many of these matters, we have also assisted companies and counsel with developing and implementing remediation plans to address compliance program failures or weaknesses.

Artifice integrates advanced forensic accounting skills and regulatory knowledge with proven, traditional fraud investigative techniques. We work discreetly to identify the scope, approach, participants and knowledgeable parties related to any activity that might violate the FCPA or similar acts. We help executives understand the strengths and weaknesses of a corporation’s internal controls and corporate compliance programs. Our work provides decision makers with a clear picture of the potential impact that an alleged violation of the FCPA may have on financial statements and government claims.

We understand that the abilities, resources and needs of each company are unique, as are the risks and situations it faces. Our wealth of experience has helped us to sharpen the the investigative techniques we use to uncover alleged violations of the FCPA, but it has also taught us to listen carefully to each client and create customized corporate compliance programs that can prevent violations in the future. Artifice has worked effectively with chief compliance officers, in-house and outside counsel, boards of directors and management.

In situations where our clients’ interests are best protected through attorney-client privilege, we team with attorneys who are experts in the FCPA. If needed, we can recommend appropriate attorneys. We have worked with many former AUSAs and/or officials from the DOJ or SEC who are now in private practice. Their government experience gives them in-depth knowledge of the concerns businesses need to address when facing alleged FCPA violations. Our attorney referrals have demonstrated an ability to focus on the key issues while remaining cognizant of broader concerns and risks.

For attorneys representing companies or individuals, each FCPA situation your clients face is unique. We team with you, providing experience-based, dependable investigative services and forensic accounting advice throughout all aspects of your representation. From initial tactical/investigative planning through reporting and possible self-disclosures, in meetings with government attorneys/officials and, if necessary, in the courtroom, Artifice is your dependable forensic accounting and financial advisor.

Our professionals have earned credibility with government authorities over the course of numerous engagements conducting mandated or voluntary assessments of internal controls and compliance programs and our repeated service in the role of independent corporate monitor. Our amenable working relationships with federal agents and government attorneys and has resulted in a wealth of proprietary institutional knowledge about how they conduct investigations and assess corporate cooperation/culpability.

Whether assisting proactively or reactively, Artifice works to provide you with the relevant facts necessary to help you evaluate the tactics, arguments and actions that will most efficiently and effectively resolve your FCPA related issues, which may include:

  • Compliance and Internal Control Remediation
  • Corporate Monitoring
  • Due Diligence
    • Mergers and Acquisitions
    • Third Party Representatives
    • Agents
    • Subsidiaries
  • FCPA Compliance Policy
    • Development
    • Assessment (Design and Effectiveness)
    • Testing
  • Forensic Accounting Support of an Independent Corporate Monitor
  • Internal Investigations
  • Proactive Forensic Accounting Analysis for FCPA Indicators and “Red Flags”
  • Responding to Government Inquiries
  • Risk Assessments
  • Training
  • Whistleblower and / or “Hotline” Investigations

  If you have concerns about possible FCPA violations, we can help. Contact us today
and let us help you develop an effective strategy to lessen any potential consequences.