The National Law Journal, in an article by attorneys William V. Roppolo and Marcus R. Cohen, reports that there have been more FCPA prosecutions concluded in the last 4 years than in the previous 28. Prosecutors are able to put cases together when businesses ignore red flags. What are red flags? Well, when Fortune magazine refers to your consultant in the country in which you are doing business as “The Pirate of Prague,” you have crossed into red-flag territory. So, keep up on your web searches on your consultants. In addition:
- Question UNUSUALLY high fees to those consultants
- Commissions are tricky elements under FCPA, especially UNUSUALLY high commissions
- ODD methods of payments i.e., weaving your way through bank accounts, deposits, third parties
- KNOW the country — go to Transparency International and check out the country’s corruption index. If the country is near Equatorial Guinea on the corruption list (not encessarily geographically), pay close attention or even consider this, “Is it worth it to do business in this country?”
- An agent with no records
- An agent who says, “You don’t need a FCPA certification.”
- Don’t distance yourself from foreign operations; it doesn’t work anyway. You are deemed to know.Â