The information provided within this website is not a substitute for professional legal advice. This website is not designed to and does not provide legal advice but is rather educational in nature. All of the content is for general information purposes only. Always seek the advice of a qualified legal professional regarding any issues you have interest in. You should not disregard professional advice or refrain from seeking professional advice because of anything contained below. The United States passed the Foreign Corrupt Practices Act (FCPA) in 1977 to prevent corrupt payments to foreign government officials and others considered to act on behalf of others. The FCPA applies to U.S. companies and institutions, as well as foreign companies, institutions or persons connected to the United States and their affiliates. Questions? Contact University Counsel or the Office of Sponsored Programs and Research Integrity () for assistance related to FCPA.
The FCPA has two components: anti-bribery and accounting. The Anti-bribery provisions are provided to prevent bribes and/or other payments that are not permitted. The Accounting items prevent bribes from being hidden by maintaining Generally Accepted Accounting Principles (GAAP).
Penalties for violations can be civil or criminal. They can include fines, imprisonment, disgorgement of any ill-gotten profits, debarment from receiving federal awards, and loss of export control licenses. Prohibition against corrupt payments appears simplistic and straightforward on its face. In practice, though, the FCPA reflects pitfalls that are far from obvious.
A violation of the antibribery provision of the FCPA consists of:
Pitfalls for UniversitiesBecause the University of Colorado Colorado Springs (UCCS) is a U.S. institution, the FCPA applies to all personnel regardless of nationality or location and operations worldwide. Violating the FCPA and other anti-bribery laws include criminal, regulatory and reputational risks. Pitfalls for the unwary include:
How This May Impact You and UCCSSanctions for FCPA violations may be significant and imposed on both the University and individuals. International cooperation, global health, and overseas activities must be undertaken with an awareness of these risks. Special precautions must be taken when using a third party to deal with a foreign entity. You and UCCS could be liable for their actions. Consider this example. A university researcher hires a local in-country consultant. This consultant, in turn, pays money to a government official in exchange for official actions that benefit the researcher and allow her research program to proceed. Because this action meets all requirements for a FCPA violation, the university employee and the university are targeted by the U.S. Department of Justice even though neither had actual knowledge of the corrupt payment. When using an advisor, consultant, or coordinator to deal with a foreign entity, red flags to watch for may include:
Your ResponsibilitiesAs a member of the UCCS community, you are responsible for compliance with the FCPA. This page is to provide an overview of the FCPA. To learn more, see the resource below. ResourcesCampus Resources For questions, please contact: OSPRI- Mike Sanderson Campus Compliance Campus Legal Outside Resources
The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business. The FCPA can apply to prohibited conduct anywhere in the world and extends to publicly traded companies and their officers, directors, employees, stockholders, and agents. Agents can include third party agents, consultants, distributors, joint-venture partners, and others. The FCPA also requires issuers to maintain accurate books and records and have a system of internal controls sufficient to, among other things, provide reasonable assurances that transactions are executed and assets are accessed and accounted for in accordance with management's authorization. The sanctions for FCPA violations can be significant. The SEC may bring civil enforcement actions against issuers and their officers, directors, employees, stockholders, and agents for violations of the anti-bribery or accounting provisions of the FCPA. Companies and individuals that have committed violations of the FCPA may have to disgorge their ill-gotten gains plus pay prejudgment interest and substantial civil penalties. Companies may also be subject to oversight by an independent consultant. The SEC and the Department of Justice are jointly responsible for enforcing the FCPA. The SEC's Enforcement Division has created a specialized unit to further enhance its enforcement of the FCPA. Summaries of FCPA casesFCPA enforcement continues to be a high priority area for the SEC's enforcement program. View the complete history of SEC enforcement actions against FCPA violators… Investor BulletinsThe SEC issued an investor bulletin detailing the FCPA's prohibitions. The SEC also issued an investor bulletin about American Depositary Receipts ("ADRs"). SpeechesReflections on the Past, Present, and Future of the SEC's Enforcement of the Foreign Corrupt Practices Act ACI’s 32nd FCPA Conference Keynote Address Remarks at 31st International Conference on the Foreign Corrupt Practices Act Keynote Address at the International Conference on the Foreign Corrupt Practices Act |