FCPA violations come in many different forms, but all violations relate to bribing, promising to bribe or attempting to bribe a foreign government official. The FCPA’s books and records and internal control provisions require companies to keep accurate books or records which reflect the company’s transactions. If a company is bribing foreign officials, the actions are never recorded in their financial statements as “bribe paid to foreign government official”, resulting in a violation of both of these provisions most of the time.
The details as to who qualifies as a “foreign government official” will differ by country, depending on the ownership structure of various industries and other considerations. Bribery at its core is about the substance of the payments being made, as it is often hidden through third-parties, covert accounting practices, bags of cash and numerous other methods.
The legal challenges to FCPA enforcement are likely to expand over the coming years, so it will be interesting to see if bribery continues to evolve into new, increasingly insidious ways. Whistleblower Justice Network has an international team of FCPA experts that work alongside our clients to guide them through every aspect of how to report FCPA violations to the SEC Whistleblower Program.
If you have significant information about violations of the Foreign Corrupt Practices Act, Whistleblower Justice Network can help you become a successful whistleblower. Our clients benefit from our expertise, extensive relationships and 20+ years of combined experience as whistleblowers. Contact us today for your free, 100% confidential consultation.