Foreign Corruption Policy Act is one of the most serious United States Acts to affect business the Caribbean region, yet it is not understood with the full gravity that it deserves.
The Acts speaks to Bribery of Government Officials – specifically, the acts speaks to not offering anything of value to a Government Official, in exchange for current or future business, opportunities or promises of future purchases by that Government official or the Government institution associated with that Government Official.
Upon receipt of information of possible infringement, the United States Department of Justice conducts a comprehensive and exhaustive investigation, which includes the hand over of all associated files, computer data and banking information – effectively closing business operations while the investigation is conducted.
In addition, the expenses of the Department of Justice is paid by the company under investigation!
Challenges and Penalties include:
– loss of business data
– business may not be able to operate until investigation is completed
– loss of revenue
– heavy fines
– American partner business will terminate business contract with local companies
In the Caribbean this takes on significantly increased meaning given
- With smaller country populations, there may be increased possibility of familial connections with politicians
- Gifts and gift giving of tokens of appreciations at specific times of the year is a cultural norm and part of regular life.
- In some countries donations to Political parties is normal and all political parties receive the same value of donations
Disengaging these practices and relationships is critical, necessary and must be addressed immediately to preserve relationships with your US business partners.
FCPA training of staff who interact with Government officials, from executive level to line staff, is essential, must be conducted and documentation of that training must be taken though sign in sheets/ attendance records and stored in a safe place for easy retrieval. This training must be documented on an annual basis.