Fall 2015 Issue of Horizons

MANUFACTURING & DISTRIBUTION

Are You Compliant with the Foreign Corrupt Practices Act (FCPA)? by Rick Feldt, CPA, CGMA

I f your company is conducting business outside the United States or if you are exploring the possibility, you need to understand and be in compliance with the Foreign Corrupt Practices Act (FCPA). Congress enacted the FCPA in 1977 in response to widespread bribery of foreign officials by U.S. companies. The FCPA makes it unlawful to make payments to certain individuals or entities that assist in obtaining or retaining business.

Prohibited individuals/entities include:

∙ Individuals holding official positions in central, state or local government

∙ Foreign political parties or officials

∙ Foreign candidates for office

∙ Facilitators (someone who will be an intermediate to the above persons)

page 30 | horizons Fall 2015