In the business world, there are laws that discourage bribery and all other forms of corruption. As a business owner, you are expected to observe the statutes. If you are in the US, then you are expected to be familiar with the Foreign Corrupt Practices Act (FCPA). This is an anti-corruption statute that prohibits you from paying or offering something valuable to foreign executives, directly or through middlemen, as a way to retain or gain business rights. The FCPA also requires you to keep accurate business records. So, failure to observe anti corruption law and compliance is tantamount to criminal conduct and there are heavy penalties involved.
To ensure that you are not on the wrong side of the law, here are the FCPA basics you need to observe:
Setting Up a Compliance Team
You need all the expert help that you can get to ensure that your business is fully compliant with the FCPA requirements. Your team should comprise legal experts, financial reporters, and auditors in addition to senior management. They should have investigative power to be able to point you in the right direction.
Commitment at the Senior Level
According to FCPA, compliance of the anti-bribery laws starts at the senior management level. Your directors and managers need to set an example that the employees can follow. This will ensure that the statutes are observed in good faith by everyone.
Establishing Control Policies
You need effective policies that are tailored to the observance of anti-corruption laws. They are supposed to work as your control standards and are meant to address all possible risks of non-compliance. This helps the employees, especially those who are new, to understand your FCPA compliance culture.
Regular In-house Training
Lastly, it’s important that your staff is updated on the latest changes in FCPA requirements so that they can act based on the developments. This will basically ensure that observance of the statutes is a tradition thing. There are training opportunities online that you can encourage them to sign up. You can also supplement the trainings with annual ethics training, which includes FCPA compliance-related examples
It takes a proper understanding of anti corruption law and compliance to be on the right side of the law. This will ensure that all business rights you obtain are genuine and that you are able to engage in business transactions legally. Human nature being what we know it is, the leadership commitment should be evidenced and supported continuously through effective system of internal controls that are specifically designed to monitor and detect instances of non-compliance.