Browsing by Subject "FCPA"

Abstract The two globally leading anti-corruption acts, the United States’ Foreign Corrupt Practices Act (‘FCPA’) and the United Kingdom’s Bribery Act, stand at the forefront of international fight against corruption. These acts prohibit foreign bribery of public officials with an extraterritorial jurisdiction. During the past years, enforcement activities of these laws have significantly grown. Only during 2020, the total penalties for violations of the FCPA imposed by the US authorities to companies was USD 6.4 billion. Out of these 12 companies only one was from the US: jurisdiction of this strict act is exceptionally broad. A company involved in international business and the individuals representing it may face severe penalties, if the company fails to prevent corruption in its business. The US and UK anti-corruption regulation include, however, a significant defence mechanism for the companies. If the company can demonstrate, after having violated either the US or UK anti-corruption laws, that despite its representative engaged in foreign bribery, it has an effective corporate compliance and ethics program, it may receive declination or at least substantial credit possibly worth of millions. The US and UK authorities have issued guidance on corporate compliance and ethics programs to support the prosecutors in their enforcement activities. This guidance also supports the companies in identifying what is required from a corporate compliance and ethics program to be considered effective. This guidance is of utmost importance for companies, as comprehensive case law is not available when majority of cases are settled. What is enough when it comes to corporate compliance and ethics programs? The requirements of the FCPA and UK Bribery Act on corporate compliance programs are studied in this thesis using a comparative research methodology, demonstrating that full compliance with these acts can be reached simultaneously. However, it is also concluded, that given the inadequate guidance by the supporting documentation, the companies cannot verify their compliance without their compliance and ethics programs being investigated by the authorities, ie US or UK prosecutors. A clear lack of guidance is identified.