Foreign Corrupt Practices Act - EY - United States

1 Foreign Corrupt Practices ActThe Foreign Corrupt Practices Act (FCPA) has become an enforcement priority for regulators and a major compliance issue for US companies with overseas operations. The Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are stepping up efforts to investigate and prosecute business corruption, signifi cantly raising the reputational and fi nancial risks to FCPA prohibits US companies, their subsidiaries, offi cers, directors or employees from bribing Foreign offi cials, either directly or indirectly through intermediaries, for the purpose of obtaining or retaining business. It also requires companies registered with the SEC to keep accurate records of all business transactions and maintain an effective system of internal accounting deep investigative experience and backgrounds in forensic accounting, law enforcement and forensic technology, and with a network of more than 1,000 investigative professionals in more than 50 countries, we have helped companies in all industries and geographies prevent, detect and investigate bribery and investigate allegations of bribery and corruption and attempts to conceal such activity.

2 Our work ranges from isolated incidents involving few employees to more pervasive conduct involving management in multiple due diligenceUS companies acquiring Foreign operations must conduct FCPA due diligence. We conduct both FCPA risk assessment and investigative procedures to help companies understand the risks and implement corrective compliance assessmentsWe provide FCPA compliance assessments for companies taking proactive measures to understand their risks and for those contemplating voluntary disclosure or settlement with regulators. We review company operations, consultant and agency relationships, cash transactions, marketing and sales Practices and accounting records to identify potential violations and investigate where requires US companies to become more familiar with the FCPA and the consequences of violations, which can include fi nancial penalties and prison program advisoryWe help companies develop, assess and improve their FCPA compliance programs and procedures.

3 We review corporate compliance policies and assessment procedures and assist with education, training and internal audit global team of investigators has performed FCPA-related work in more than 50 investigated bribery allegations at the Asian operations of a global service company. The investigation was focused on acquired operations and ultimately spread to multiple locations throughout Asia. We simultaneously deployed several teams comprised of US and local professionals to investigate. The teams worked closely with internal and external counsel and internal audit, and they reported regularly to senior executives, outside auditors and the company s audit committee. We also assisted the company in preparation for its disclosures to the DOJ and the were retained by a global manufacturer to conduct an investigation into whistleblower allegations concerning payment of bribes and improper entertainment of offi cials of a state-owned enterprise. The investigation was led by US professionals who worked closely with our colleagues in Asia.

4 EY forensic technology professionals in Singapore performed a forensic imaging of email servers and personal computers. We then reported our fi ndings to the company s audit due diligenceWe were retained by a multibilliondollar global company to conduct FCPA pre-acquisition due diligence. The due diligence was designed to identify potential FCPA red fl ags in certain highrisk countries. We analyzed global FCPA policies and procedures and conducted interviews and other forensic analysis. We worked with outside counsel to create a balanced approach that focused on FCPA risk areas and allowed for reporting to senior management and in-house legal counsel prior to contract signing. Our team comprised FCPA professionals from the US, Asia, Eastern Europe and SouthAmericaCompliance program advisoryWe were retained by a global fi nancial services company to review its FCPA compliance program. Our work included a review of applicable policies, procedures and training programs.

5 We worked with internal auditors on-site in Mexico to pilot the initial review. We also helped design an internal audit program focused on business-unit FCPA compliance and transaction testing for red fl ags. We also validated the internal audit program by conducting a pilot audit at a non-US business assessmentsWe conducted reviews of FCPA compliance in multiple countries for an energy company. The client had uncovered allegations of bribery and had made a voluntary disclosure to the DOJ and the SEC. At the regulators request, the client retained us to review operations in certain high-FCPA-risk countries. We worked with outside counsel to conduct reviews in Asia, and US executives led the South America review teams with support from local professionals. We were hired by a large manufacturing company to conduct assessments for FCPA compliance in selected business units. Assessments focused on the business unit s Foreign government-business-related marketing Practices , use of consultants and agents and overall compliance with company FCPA policies and procedures.

6 We worked with the director of internal audit and used the assessment results to develop an internal audit program tailored to the client s business and FCPA | Assurance | Tax | Transactions | AdvisoryAbout EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the EY s Fraud Investigation & Dispute ServicesDealing with complex issues of fraud, regulatory compliance and business disputes can detract from efforts to succeed.

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