Tag Archives: FCPA

Recent Enforcement Actions Demonstrate Multinational Automotive Companies Should Conduct Risk Assessments

multinational enforcement
Regulators within the Trump administration have sent a loud message that should concern all multinational automotive companies: laws governing international activities continue to be the subject of intense enforcement activity, leading to record fines in such areas as U.S. economic sanctions administered by the Office of Foreign Assets Control (OFAC), export controls (the International Traffic … Continue reading this entry

Know the Risks: Domestic and International Compliance

supply chain
An open question coming into 2017 was whether the aggressive enforcement posture that had characterized the Obama and Bush administrations would continue under the Trump administration. Any questions were answered with the announcement of the first billion-dollar export controls penalty at the outset of the new administration. With the Trump administration continuing to aggressively pursue … Continue reading this entry

New Administration Ramps up Enforcement Efforts

Suppliers Get Ready For Your Recalls
The Trump administration has vowed to bring jobs back to the states. One of the methods it appears it’ll take advantage of is continued, aggressive enforcement of U.S. laws governing exports and international conduct.… Continue reading this entry

Best Practices to Avoid Common FCPA Violations: Third-Parties

While the Foreign Corrupt Practices Act (“FCPA”) is an extremely complex act, there are two common FCPA violations of which automotive companies with international operations should be particularly sensitive. We recently discussed the challenges associated with providing gifts, meals, and entertainment to customers. In this post, we discuss another common issue: using third-parties abroad. Third-Parties … Continue reading this entry

Best Practices to Avoid Common FCPA Violations: Gifts, Meals, and Entertainment

As our previous posts illustrate, violations of the Foreign Corrupt Practices Act (“FCPA”) can carry a hefty cost. Two issues are commonly the impetus for FCPA violations and, practically speaking, pose significant FCPA compliance challenges. Automotive companies which conduct international business should be particularly sensitive to (1) providing gifts, meals, and entertainment to potential and existing … Continue reading this entry

The High Cost of an FCPA Violation

Violations of the Foreign Corrupt Practices Act (“FCPA”) can lead to hefty penalties. Indeed, individuals who violate the FCPA, and their employers, could be on the hook for a variety of penalties described below. Businesses need to be aware of these potential consequences in order to appropriately perform risk-based analyses and determine what level of … Continue reading this entry

Making the FCPA “Reasonable” — Exceptions & Affirmative Defenses

So, we have covered the Foreign Corrupt Practices Act’s (“FCPA”) scope, but the FCPA anti-bribery provisions also contain certain exceptions and affirmative defenses. These exceptions and affirmative defenses attempt to carve out legitimate payments to foreign officials, so the FCPA does not unreasonably hamper international business. Be wary, however, because prosecutors narrowly interpret these exceptions … Continue reading this entry

The FCPA Mandate in a Nutshell

As discussed in our Foreign Corrupt Practices Act (“FCPA”) overview, automotive companies participating in international business must be mindful of the FCPA. Though many are aware of the FCPA, some do not understand its breadth and depth. Below is a bare-bones breakdown of this federal law’s scope. While the below outline will help readers understand … Continue reading this entry

Why It's Wise to Pay Attention to Your FCPA Compliance

Companies in the automotive industry would be wise to pay attention to Foreign Corrupt Practices Act (the “FCPA”) compliance. What has in the past been a risk management issue principally for massive multi-national corporations is now a real and serious risk for almost any company – large, medium or small; public or private – that sells products, … Continue reading this entry

The Foreign Corrupt Practices Act: A Pitfall in International Trade

Department of Energy Makes it Easier to Access Low-Interest Financing
Just as in 2014, the Foreign Corrupt Practices Act (“FCPA”) should be top of mind for any automotive company conducting or considering international business. Indeed, any doubts that the government was still interested in investigating and prosecuting companies and individuals for violations of the FCPA, were put to rest in 2014. This is so because government enforcement … Continue reading this entry

Are You Focused on FCPA Compliance? You Should Be

What’s Next for Conflict Minerals Rules After D.C. Circuit Decision?
The topic of FCPA compliance should be top-of-mind for U.S. auto industry companies who do business with third-party intermediaries and subsidiaries overseas, particularly in known “hot spots” such as China, India, Russia, Mexico, and Brazil. Enforcement activity by the U.S. Department of Justice shows no signs of slowing, and other countries have started to ramp … Continue reading this entry

Know the Risks: Domestic and International Compliance

The penalties for compliance missteps have never been higher — particularly in the international regulatory context. As the record-setting penalties against BNP Paribas (nearly $9 billion in penalties for violations of economic sanctions and anti-money laundering laws) in 2014 amply illustrates, the criminal and civil penalties for violations of U.S. law have never been higher. … Continue reading this entry

Top Legal Issues Facing Suppliers in 2015

Foley’s Automotive Industry Team has prepared this overview of the major trends we see affecting automotive suppliers this year. While not all legal risk can be anticipated, companies that are aware of litigation, enforcement, and regulatory trends will be one step ahead of their competition. Top issues include:… Continue reading this entry

FCPA, Export Control, and Economic Sanctions: Enforcement Trends and Compliance

On January 24, 2013, Foley attorneys Greg Husisian and Christopher Swift briefed the Original Equipment Suppliers Association (“OESA”) Legal Council on recent FCPA, Export Control, and Economic Sanctions enforcement trends. Focusing on anticorruption, munitions, dual-use technologies, and a broad spectrum of new sanctions, the presentation identified enhanced risks for multinational companies that manufacture and export … Continue reading this entry