A complete Foreign Corrupt Practices Act (FCPA) compliance checklist

Posted on by Griffin Durham Tanner & Clarkson

The Foreign Corrupt Practices Act (FCPA) is a fundamental U.S. anti-bribery law that prohibits individuals and businesses from offering bribes to foreign officials to secure business advantages. The law applies to U.S. companies, foreign entities listed on U.S. exchanges, and individuals engaging in international business, imposing severe civil and criminal penalties for violations.

The FCPA presents unique compliance risks for healthcare providers, pharmaceutical companies, and medical device manufacturers, as interactions with foreign healthcare professionals and government officials can lead to liability. At Griffin Durham Tanner & Clarkson LLC, our Atlanta white-collar criminal defense lawyers offer strategic defense and compliance solutions to help businesses and executives navigate FCPA enforcement risks.

This FCPA compliance checklist outlines key risk areas, internal controls, and best practices to help organizations mitigate exposure and ensure compliance.

foreign corrupt practices act compliance checklist

Understanding FCPA compliance

The FCPA (15 U.S.C. §§ 78dd-1, et seq.) contains two primary provisions:

  • Anti-bribery provisions – Prohibit offering, promising, or giving anything of value to foreign officials to influence decisions.
  • Accounting provisions – Require companies to maintain accurate financial records and implement internal controls to prevent bribery.

Failure to comply can lead to criminal prosecution, significant fines, and reputational damage, making a robust compliance program essential.

FCPA compliance checklist

Establish a strong corporate compliance program

  1. Develop and document an FCPA compliance policy – Ensure the policy clearly outlines anti-bribery rules, reporting procedures, and disciplinary actions.
  2. Appoint a compliance officer – Designate an individual or team responsible for monitoring FCPA adherence.
  3. Ensure board oversight – Corporate leadership should actively oversee and enforce compliance efforts.

Conduct thorough due diligence on third parties

  1. Vet foreign agents, consultants, and distributors – Conduct background checks to assess their integrity.
  2. Review contracts for anti-bribery clauses – Ensure agreements include FCPA compliance certifications and audit rights.
  3. Assess local business practices – Be aware of regional corruption risks, especially in high-risk jurisdictions identified in Transparency International’s Corruption Perceptions Index.

Implement robust financial controls

  1. Maintain accurate books and records – Ensure all transactions are properly documented and transparent.
  2. Monitor expense accounts – Scrutinize payments for gifts, entertainment, and travel expenses related to foreign officials.
  3. Enforce strict approval procedures – Require multi-level approval for high-risk transactions.

Provide comprehensive FCPA training

  1. Conduct regular employee training – Educate executives, sales teams, and international representatives on FCPA risks and violations.
  2. Tailor training to risk exposure – Employees in healthcare, pharmaceuticals, and government contracting face heightened FCPA risks.
  3. Document all training efforts – Maintain records of attendance and training materials for compliance audits.

Monitor gifts, hospitality, and charitable contributions

  1. Set clear gift and hospitality limits – Establish guidelines for meals, entertainment, and promotional items.
  2. Require prior approval for high-value gifts – Transactions exceeding pre-set thresholds should undergo compliance review.
  3. Ensure charitable donations are legitimate – Verify that donations are not used as a front for bribery.

Establish a whistleblower and reporting system

  1. Create confidential reporting mechanisms – Encourage employees to report violations without fear of retaliation.
  2. Investigate complaints swiftly – Address allegations thoroughly and document the resolution process.
  3. Reward ethical behavior – Reinforce a culture of compliance through recognition and incentives.

Conduct internal audits and compliance reviews

  1. Schedule routine audits – Regularly review financial records for suspicious transactions.
  2. Engage external auditors if necessary – Independent reviews enhance credibility and identify potential compliance gaps.
  3. Adjust compliance strategies based on audit findings – Strengthen policies to address emerging risks.

FCPA enforcement and penalties

FCPA violations can result in severe civil and criminal penalties, including:

  • Corporate fines – Up to $2 million per violation for companies.
  • Individual fines – Up to $250,000 per violation for executives.
  • Imprisonment – Up to five years for anti-bribery violations and 20 years for accounting violations.
  • Disgorgement of profits – Companies may be required to forfeit ill-gotten gains.

The Department of Justice (DOJ) and Securities and Exchange Commission (SEC) aggressively investigate and prosecute FCPA cases, particularly in high-risk industries such as healthcare, defense, and international business development.

Defending against FCPA investigations

At Griffin Durham Tanner & Clarkson LLC, our white-collar defense attorneys represent corporate executives, healthcare professionals, and multinational businesses facing FCPA investigations. We employ aggressive legal strategies to protect clients from severe penalties, including:

  • Challenging intent and knowledge – Demonstrating that alleged violations were unintentional or committed without knowledge.
  • Examining due process violations – Identifying procedural errors or unlawful evidence collection by government investigators.
  • Negotiating settlements and compliance resolutions – Working with federal agencies to minimize penalties through corporate compliance programs or settlements.
  • Asserting corporate compliance efforts – Establishing that any misconduct resulted from rogue employees rather than systemic corporate failures.

Our firm provides the strategic, high-level defense necessary to mitigate liability and safeguard business operations, reputations, and financial interests.

Why choose Griffin Durham Tanner & Clarkson LLC?

Whether you seek FCPA compliance guidance or face enforcement action, we provide discreet, high-level legal counsel to protect your interests.

Call (404) 891-9150 or schedule a confidential consultation online to discuss your FCPA compliance or defense needs.