SlideShare una empresa de Scribd logo
1 de 20
Descargar para leer sin conexión
An Antibribery Primer for SMEs: The FCPA,
Corrupt Foreign Public Officials Act (Canada),
and the UK Bribery Act
SBA Buffalo District International Trade Task Force
Buffalo, New York
December 6, 2013

Law Offices of Jon P. Yormick Co. LPA
An International Law Practice
Attorney Advertising
Disclaimer
• The information provided is believed to be accurate
as of the date of the presentation, but is subject to
change without notice

• This presentation is designed for informational
purposes only and is not intended to be, nor should it
be deemed, specific legal advice. If such advice is
required, please consult with qualified legal counsel
Foreign Corrupt Practices Act
• …”consequences of public corruption can be even more severe in
developing countries.”
• “In today’s global economy, the negative effects of corruption inevitably
flow back to the United States.”
– Economic crises that destablize the global financial system
– Opens borders for terrorists to cross
– Raises prices of goods
– Costs American jobs because U.S. companies cannot compete
effectively

Deputy Attorney General James M. Cole, Foreign Corrupt Practices Act Conference, Nov. 19,
2013
Foreign Corrupt Practices Act
• Key parts of FCPA

– Antibribery
– Accounting (Book and records)

make/keep books accurately and reflect
transactions
maintain adequate internal accounting
controls
Antibribery
• Prohibits “corruptly offering, paying, promising to
pay, or authorizing the payment of any money or
anything of value , directly or indirectly, to a foreign
government official for the purposes of obtaining or
retaining business for, or directing business to, any
person.”
Information, United States v. Weatherford International
Ltd., Court Docket Number: 13-CR-733, Nov. 26, 2013
United States v. BizJet International Sales and
Support, Inc., Docket No: 12-CR-061-CVE, Northern Dist. of
Oklahoma
BizJet International
• MRO provider

• Customer list:
– Mexican Federal Police
– Mexican President‟s Fleet
– Mexican State of Sinaloa (Governor‟s Fleet)
– Panama Aviation Authority
BizJet International
• Paid bribes to officers and other decision-makers
– “commissions”
– “incentives”
– “referral fees”

• Board knowledge and approval
• Benefit - $7M+
• 200-999 employees – about 320
BizJet International
• Internal audit
• Voluntary disclosure
• Cooperation
• Termination
• Enhanced compliance
Result: DPA + 4 former employees criminally charged
Penalty: $11.8M

Enhanced compliance – review/report
Mandatory successor liability
FCPA Guidance
• Nov. 2012 - A Resource Guide to the U.S. Foreign Corrupt Practices Act
http://www.justice.gov/criminal/fraud/fcpa/guide.pdf
• Opinion Releases Index
http://www.justice.gov/criminal/fraud/fcpa/index/
– Audit rights
– Charitable contributions
– Gifts, Travel & Entertainment
– JVs, M&A
– Reasonable, bona fide expenditures

– Third-party agents
DPA – Corporate Compliance Program
• “… has implemented and will continue
to implement a compliance and ethics
program designed to prevent and detect
violations of the FCPA and other
applicable anti-corruption laws
throughout its operation…”
UK Bribery Act 2010
• April 8, 2010 – received Royal Assent
• Delayed effective date - July 1, 2011

• New high water mark
• …the UK Bribery Act “finally bring[s] UK rules on
corrupt payments into line with other OECD
countries.”
UK Bribery Act 2010
• Key features:
–Commercial bribery
–Facilitation payments
–Adequate procedures
–UK nexus – “close connection”
UK Bribery Act 2010
• Section 7 – failing to prevent bribery
– Only requires company “carries on” business or part of a business in UK
– FCPA – supply side only; prohibits bribe payments
– UKBA -
“Specially Designed” Light
• (a) Except for items described in (b), an “item” is “specially
designed” if it:
– As a result of “development” has properties peculiarly
responsible for achieving or exceeding the performance
levels, characteristics, or functions in the relevant ECCN
or U.S. Munitions List (USML) paragraph; or
– Is a “part,” “component,” “accessory,” “attachment,” or
“software” for use in or with a commodity or defense
article „enumerated‟ or otherwise described on the CCL
or the USML.
“Specially Designed” Extra Light
• (b) A “part,” etc. … is not “specially designed” if it:
• Is a fastener (e.g., screw, bolt, nut, nut plate, stud, insert, clip, rivet, pin),
washer, spacer, insulator, grommet, bushing, spring, wire, solder;
• Has the same function, performance capabilities, and the same or
„equivalent‟ form and fit, as a commodity or software used in or with an
item that:
• Is or was in “production” (i.e., not in “development”); and not on CCL or
USML or controlled for AT only;
• Was or is being developed as a general purpose commodity or software
(no specific knowledge) or
• Was or is being developed with “knowledge” that it would be for use in
or with commodities or software… exclusively for use in or with EAR99
commodities or software.
BIS Decision Tools
Commerce Control List (CCL) Order of
Review
http://www.bis.doc.gov/index.php/exportcontrol-classification-interactive-tool
Specially Designed
http://www.bis.doc.gov/index.php/speciallydesigned-tool
Aeroflex, Inc. Consent Agreement
• 158 violations

• “…systemic and longstanding nature of
the violations based on improper
product classifications…”
• $8M – 50% on remedial measures
Credit Manager Export Compliance Role
• Understand basics of export controls

– Consequences of violations
• Screen customers & destinations – Consolidated Screening
List http://export.gov/ecr/eg_main_023148.asp

• Keep records
• Know what to do next
• Stay informed – ECR, sanctions, diversion risks

• Promote compliance atmosphere
Thank you
Jon P. Yormick
Attorney and Counsellor at Law
Law Offices of Jon P. Yormick Co. LPA
jon@yormicklaw.com
Toll Free: +1.866.967.6425
Mobile: +1.216.269.5138

Buffalo | Chihuahua, Mexico† |Cleveland
†Affiliate

office

Más contenido relacionado

Destacado

At the Intersection of Commercial Export Controls and Hiring Foreign National...
At the Intersection of Commercial Export Controls and Hiring Foreign National...At the Intersection of Commercial Export Controls and Hiring Foreign National...
At the Intersection of Commercial Export Controls and Hiring Foreign National...Jon Yormick
 
Preparing for Compliance and Enforcement Under Export Control Reform
Preparing for Compliance and Enforcement Under Export Control ReformPreparing for Compliance and Enforcement Under Export Control Reform
Preparing for Compliance and Enforcement Under Export Control ReformJon Yormick
 
NACM Credit Congress & Expo.Navigating Economic Sanctions Successfully.01jun14
NACM Credit Congress & Expo.Navigating Economic Sanctions Successfully.01jun14NACM Credit Congress & Expo.Navigating Economic Sanctions Successfully.01jun14
NACM Credit Congress & Expo.Navigating Economic Sanctions Successfully.01jun14Jon Yormick
 
Busting Myths About Ddtc Registration
Busting Myths About Ddtc RegistrationBusting Myths About Ddtc Registration
Busting Myths About Ddtc RegistrationJon Yormick
 
問卷調查報告
問卷調查報告問卷調查報告
問卷調查報告rong1017
 
Sicily 2010
Sicily 2010 Sicily 2010
Sicily 2010 brioron
 
U.S. Economic Sanctions Update
U.S. Economic Sanctions UpdateU.S. Economic Sanctions Update
U.S. Economic Sanctions UpdateJon Yormick
 
問卷調查報告
問卷調查報告問卷調查報告
問卷調查報告rong1017
 
Presentacion powerpoint
Presentacion powerpointPresentacion powerpoint
Presentacion powerpointCARMENRDH
 
問卷調查報告
問卷調查報告問卷調查報告
問卷調查報告rong1017
 
Wiggio 110920140511-phpapp01
Wiggio 110920140511-phpapp01Wiggio 110920140511-phpapp01
Wiggio 110920140511-phpapp01SeBas Montese
 

Destacado (14)

At the Intersection of Commercial Export Controls and Hiring Foreign National...
At the Intersection of Commercial Export Controls and Hiring Foreign National...At the Intersection of Commercial Export Controls and Hiring Foreign National...
At the Intersection of Commercial Export Controls and Hiring Foreign National...
 
The Things We Eat
The Things We EatThe Things We Eat
The Things We Eat
 
Preparing for Compliance and Enforcement Under Export Control Reform
Preparing for Compliance and Enforcement Under Export Control ReformPreparing for Compliance and Enforcement Under Export Control Reform
Preparing for Compliance and Enforcement Under Export Control Reform
 
NACM Credit Congress & Expo.Navigating Economic Sanctions Successfully.01jun14
NACM Credit Congress & Expo.Navigating Economic Sanctions Successfully.01jun14NACM Credit Congress & Expo.Navigating Economic Sanctions Successfully.01jun14
NACM Credit Congress & Expo.Navigating Economic Sanctions Successfully.01jun14
 
Busting Myths About Ddtc Registration
Busting Myths About Ddtc RegistrationBusting Myths About Ddtc Registration
Busting Myths About Ddtc Registration
 
花花
 
問卷調查報告
問卷調查報告問卷調查報告
問卷調查報告
 
Sicily 2010
Sicily 2010 Sicily 2010
Sicily 2010
 
U.S. Economic Sanctions Update
U.S. Economic Sanctions UpdateU.S. Economic Sanctions Update
U.S. Economic Sanctions Update
 
問卷調查報告
問卷調查報告問卷調查報告
問卷調查報告
 
Presentacion powerpoint
Presentacion powerpointPresentacion powerpoint
Presentacion powerpoint
 
問卷調查報告
問卷調查報告問卷調查報告
問卷調查報告
 
花花
 
Wiggio 110920140511-phpapp01
Wiggio 110920140511-phpapp01Wiggio 110920140511-phpapp01
Wiggio 110920140511-phpapp01
 

Similar a An Antibribery Primer for SMEs: The FCPA, Corrupt Foreign Public Officials Act (Canada), and the UK Bribery Act

Best Practices to Achieve an Effective FCPA Compliance Program
Best Practices to Achieve an Effective FCPA Compliance ProgramBest Practices to Achieve an Effective FCPA Compliance Program
Best Practices to Achieve an Effective FCPA Compliance ProgramMyComplianceOffice
 
Jw Uhd Strategic Issues Legal Challenges In Global Business Foreign Inv...
Jw   Uhd   Strategic Issues  Legal Challenges In Global Business  Foreign Inv...Jw   Uhd   Strategic Issues  Legal Challenges In Global Business  Foreign Inv...
Jw Uhd Strategic Issues Legal Challenges In Global Business Foreign Inv...Bridge360
 
Foreign Corrupt Practices Act (FCPA) Compliance Webinar
Foreign Corrupt Practices Act (FCPA) Compliance WebinarForeign Corrupt Practices Act (FCPA) Compliance Webinar
Foreign Corrupt Practices Act (FCPA) Compliance WebinarMyComplianceOffice
 
10/15/2009 Meeting - Tools of The Trade (Background Checks)
10/15/2009 Meeting - Tools of The Trade (Background Checks)10/15/2009 Meeting - Tools of The Trade (Background Checks)
10/15/2009 Meeting - Tools of The Trade (Background Checks)acfesj
 
Customer Due Diligence: Improving Screening Processes for OFAC Entities and O...
Customer Due Diligence: Improving Screening Processes for OFAC Entities and O...Customer Due Diligence: Improving Screening Processes for OFAC Entities and O...
Customer Due Diligence: Improving Screening Processes for OFAC Entities and O...SHAUN HASSETT
 
Denied party screening 2016 webinar final
Denied party screening 2016 webinar finalDenied party screening 2016 webinar final
Denied party screening 2016 webinar finalNed Blinick
 
Denied party screening 2016 webinar final
Denied party screening 2016 webinar finalDenied party screening 2016 webinar final
Denied party screening 2016 webinar finalNed Blinick
 
Export Compliance & Controls Training July 31 2009..............................
Export Compliance & Controls Training July 31 2009..............................Export Compliance & Controls Training July 31 2009..............................
Export Compliance & Controls Training July 31 2009..............................Export Experts, LLC
 
Introduction to US Privacy and Data Security Regulations and Requirements (Se...
Introduction to US Privacy and Data Security Regulations and Requirements (Se...Introduction to US Privacy and Data Security Regulations and Requirements (Se...
Introduction to US Privacy and Data Security Regulations and Requirements (Se...Financial Poise
 
Protecting Against Bribery Risk in Business Transactions: Developing an Effec...
Protecting Against Bribery Risk in Business Transactions: Developing an Effec...Protecting Against Bribery Risk in Business Transactions: Developing an Effec...
Protecting Against Bribery Risk in Business Transactions: Developing an Effec...PECB
 
Foreign Corrupt Practices Act Compliance
Foreign Corrupt Practices Act ComplianceForeign Corrupt Practices Act Compliance
Foreign Corrupt Practices Act ComplianceFinancial Poise
 
Anti Corruption - Ignorance is no longer bliss
Anti Corruption  - Ignorance is no longer blissAnti Corruption  - Ignorance is no longer bliss
Anti Corruption - Ignorance is no longer blissSandyBoucher
 
Cybersecurity Brief: Understanding Risk, Legal Framework, & Insurance
Cybersecurity Brief: Understanding Risk, Legal Framework, & InsuranceCybersecurity Brief: Understanding Risk, Legal Framework, & Insurance
Cybersecurity Brief: Understanding Risk, Legal Framework, & InsuranceSecureDocs
 

Similar a An Antibribery Primer for SMEs: The FCPA, Corrupt Foreign Public Officials Act (Canada), and the UK Bribery Act (20)

Best Practices to Achieve an Effective FCPA Compliance Program
Best Practices to Achieve an Effective FCPA Compliance ProgramBest Practices to Achieve an Effective FCPA Compliance Program
Best Practices to Achieve an Effective FCPA Compliance Program
 
Jw Uhd Strategic Issues Legal Challenges In Global Business Foreign Inv...
Jw   Uhd   Strategic Issues  Legal Challenges In Global Business  Foreign Inv...Jw   Uhd   Strategic Issues  Legal Challenges In Global Business  Foreign Inv...
Jw Uhd Strategic Issues Legal Challenges In Global Business Foreign Inv...
 
Foreign Corrupt Practices Act (FCPA) Compliance Webinar
Foreign Corrupt Practices Act (FCPA) Compliance WebinarForeign Corrupt Practices Act (FCPA) Compliance Webinar
Foreign Corrupt Practices Act (FCPA) Compliance Webinar
 
10/15/2009 Meeting - Tools of The Trade (Background Checks)
10/15/2009 Meeting - Tools of The Trade (Background Checks)10/15/2009 Meeting - Tools of The Trade (Background Checks)
10/15/2009 Meeting - Tools of The Trade (Background Checks)
 
FCPA Ppt
FCPA PptFCPA Ppt
FCPA Ppt
 
World compliance 8 5-10
World compliance 8 5-10World compliance 8 5-10
World compliance 8 5-10
 
Customer Due Diligence: Improving Screening Processes for OFAC Entities and O...
Customer Due Diligence: Improving Screening Processes for OFAC Entities and O...Customer Due Diligence: Improving Screening Processes for OFAC Entities and O...
Customer Due Diligence: Improving Screening Processes for OFAC Entities and O...
 
Aml services
Aml servicesAml services
Aml services
 
scce-cep-2015-05-Ward-1
scce-cep-2015-05-Ward-1scce-cep-2015-05-Ward-1
scce-cep-2015-05-Ward-1
 
Denied party screening 2016 webinar final
Denied party screening 2016 webinar finalDenied party screening 2016 webinar final
Denied party screening 2016 webinar final
 
Denied party screening 2016 webinar final
Denied party screening 2016 webinar finalDenied party screening 2016 webinar final
Denied party screening 2016 webinar final
 
Wlf fcpa slides
Wlf fcpa slidesWlf fcpa slides
Wlf fcpa slides
 
Export Compliance & Controls Training July 31 2009..............................
Export Compliance & Controls Training July 31 2009..............................Export Compliance & Controls Training July 31 2009..............................
Export Compliance & Controls Training July 31 2009..............................
 
Creating an FCPA Program
Creating an FCPA ProgramCreating an FCPA Program
Creating an FCPA Program
 
Introduction to US Privacy and Data Security Regulations and Requirements (Se...
Introduction to US Privacy and Data Security Regulations and Requirements (Se...Introduction to US Privacy and Data Security Regulations and Requirements (Se...
Introduction to US Privacy and Data Security Regulations and Requirements (Se...
 
Protecting Against Bribery Risk in Business Transactions: Developing an Effec...
Protecting Against Bribery Risk in Business Transactions: Developing an Effec...Protecting Against Bribery Risk in Business Transactions: Developing an Effec...
Protecting Against Bribery Risk in Business Transactions: Developing an Effec...
 
Foreign Corrupt Practices Act Compliance
Foreign Corrupt Practices Act ComplianceForeign Corrupt Practices Act Compliance
Foreign Corrupt Practices Act Compliance
 
Anti Corruption - Ignorance is no longer bliss
Anti Corruption  - Ignorance is no longer blissAnti Corruption  - Ignorance is no longer bliss
Anti Corruption - Ignorance is no longer bliss
 
Cybersecurity Brief: Understanding Risk, Legal Framework, & Insurance
Cybersecurity Brief: Understanding Risk, Legal Framework, & InsuranceCybersecurity Brief: Understanding Risk, Legal Framework, & Insurance
Cybersecurity Brief: Understanding Risk, Legal Framework, & Insurance
 
Dc fcpa tour final ho
Dc fcpa tour final hoDc fcpa tour final ho
Dc fcpa tour final ho
 

Último

Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZKanakChauhan5
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 

Último (20)

Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZ
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 

An Antibribery Primer for SMEs: The FCPA, Corrupt Foreign Public Officials Act (Canada), and the UK Bribery Act

  • 1. An Antibribery Primer for SMEs: The FCPA, Corrupt Foreign Public Officials Act (Canada), and the UK Bribery Act SBA Buffalo District International Trade Task Force Buffalo, New York December 6, 2013 Law Offices of Jon P. Yormick Co. LPA An International Law Practice Attorney Advertising
  • 2. Disclaimer • The information provided is believed to be accurate as of the date of the presentation, but is subject to change without notice • This presentation is designed for informational purposes only and is not intended to be, nor should it be deemed, specific legal advice. If such advice is required, please consult with qualified legal counsel
  • 3. Foreign Corrupt Practices Act • …”consequences of public corruption can be even more severe in developing countries.” • “In today’s global economy, the negative effects of corruption inevitably flow back to the United States.” – Economic crises that destablize the global financial system – Opens borders for terrorists to cross – Raises prices of goods – Costs American jobs because U.S. companies cannot compete effectively Deputy Attorney General James M. Cole, Foreign Corrupt Practices Act Conference, Nov. 19, 2013
  • 4. Foreign Corrupt Practices Act • Key parts of FCPA – Antibribery – Accounting (Book and records) make/keep books accurately and reflect transactions maintain adequate internal accounting controls
  • 5. Antibribery • Prohibits “corruptly offering, paying, promising to pay, or authorizing the payment of any money or anything of value , directly or indirectly, to a foreign government official for the purposes of obtaining or retaining business for, or directing business to, any person.” Information, United States v. Weatherford International Ltd., Court Docket Number: 13-CR-733, Nov. 26, 2013
  • 6. United States v. BizJet International Sales and Support, Inc., Docket No: 12-CR-061-CVE, Northern Dist. of Oklahoma
  • 7. BizJet International • MRO provider • Customer list: – Mexican Federal Police – Mexican President‟s Fleet – Mexican State of Sinaloa (Governor‟s Fleet) – Panama Aviation Authority
  • 8. BizJet International • Paid bribes to officers and other decision-makers – “commissions” – “incentives” – “referral fees” • Board knowledge and approval • Benefit - $7M+ • 200-999 employees – about 320
  • 9. BizJet International • Internal audit • Voluntary disclosure • Cooperation • Termination • Enhanced compliance Result: DPA + 4 former employees criminally charged Penalty: $11.8M Enhanced compliance – review/report Mandatory successor liability
  • 10. FCPA Guidance • Nov. 2012 - A Resource Guide to the U.S. Foreign Corrupt Practices Act http://www.justice.gov/criminal/fraud/fcpa/guide.pdf • Opinion Releases Index http://www.justice.gov/criminal/fraud/fcpa/index/ – Audit rights – Charitable contributions – Gifts, Travel & Entertainment – JVs, M&A – Reasonable, bona fide expenditures – Third-party agents
  • 11. DPA – Corporate Compliance Program • “… has implemented and will continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other applicable anti-corruption laws throughout its operation…”
  • 12. UK Bribery Act 2010 • April 8, 2010 – received Royal Assent • Delayed effective date - July 1, 2011 • New high water mark • …the UK Bribery Act “finally bring[s] UK rules on corrupt payments into line with other OECD countries.”
  • 13. UK Bribery Act 2010 • Key features: –Commercial bribery –Facilitation payments –Adequate procedures –UK nexus – “close connection”
  • 14. UK Bribery Act 2010 • Section 7 – failing to prevent bribery – Only requires company “carries on” business or part of a business in UK – FCPA – supply side only; prohibits bribe payments – UKBA -
  • 15. “Specially Designed” Light • (a) Except for items described in (b), an “item” is “specially designed” if it: – As a result of “development” has properties peculiarly responsible for achieving or exceeding the performance levels, characteristics, or functions in the relevant ECCN or U.S. Munitions List (USML) paragraph; or – Is a “part,” “component,” “accessory,” “attachment,” or “software” for use in or with a commodity or defense article „enumerated‟ or otherwise described on the CCL or the USML.
  • 16. “Specially Designed” Extra Light • (b) A “part,” etc. … is not “specially designed” if it: • Is a fastener (e.g., screw, bolt, nut, nut plate, stud, insert, clip, rivet, pin), washer, spacer, insulator, grommet, bushing, spring, wire, solder; • Has the same function, performance capabilities, and the same or „equivalent‟ form and fit, as a commodity or software used in or with an item that: • Is or was in “production” (i.e., not in “development”); and not on CCL or USML or controlled for AT only; • Was or is being developed as a general purpose commodity or software (no specific knowledge) or • Was or is being developed with “knowledge” that it would be for use in or with commodities or software… exclusively for use in or with EAR99 commodities or software.
  • 17. BIS Decision Tools Commerce Control List (CCL) Order of Review http://www.bis.doc.gov/index.php/exportcontrol-classification-interactive-tool Specially Designed http://www.bis.doc.gov/index.php/speciallydesigned-tool
  • 18. Aeroflex, Inc. Consent Agreement • 158 violations • “…systemic and longstanding nature of the violations based on improper product classifications…” • $8M – 50% on remedial measures
  • 19. Credit Manager Export Compliance Role • Understand basics of export controls – Consequences of violations • Screen customers & destinations – Consolidated Screening List http://export.gov/ecr/eg_main_023148.asp • Keep records • Know what to do next • Stay informed – ECR, sanctions, diversion risks • Promote compliance atmosphere
  • 20. Thank you Jon P. Yormick Attorney and Counsellor at Law Law Offices of Jon P. Yormick Co. LPA jon@yormicklaw.com Toll Free: +1.866.967.6425 Mobile: +1.216.269.5138 Buffalo | Chihuahua, Mexico† |Cleveland †Affiliate office