3 Surprising Ways To Run Afoul Of Fcpa Laws

By Author: concur
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International business dealings can be complex enough without considering the realities of FCPA. Yet savvy businesses know that paying attention FCPA compliance is simply not optional. Created in the 1970’s to ensure that businesses were transparent in international dealings, the FCPA sets strict rules of governance when it comes to payments and goods given to foreign entities. The law also sets the stage for serious penalties doled out to businesses that flout the rules. It can seem pretty obvious what would be an FCPA violation, specifically – giving cash to a foreign political leader, for instance. But few businesses are quite that irresponsible. The real risk to the average business comes from making unexpected FCPA mistakes. Here are some surprising ways that you can run afoul of FCPA laws and how something as simple as employing FCPA compliance software can keep you in the clear.
Having a Weak Travel Expense Policy
Whether it’s due to an outdated policy that hasn’t kept up with a rapidly expanding business or a function of having a laissez-fair policy in the first place, not having strong travel expense ...
... rules can contribute to FCPA violations in many ways. An effective travel expense policy should include strict dollar limits on spending for gifts, entertainment and travel; should require advanced approval for potentially murky expenditures; and should limit use of gift cards and cash. This is the first step to staying on the right side of FCPA law.
Poor Bookkeeping
Cutting corners when it comes to bookkeeping is always a guaranteed way of getting into trouble with the law. Whether it is due to limited staff, a small budget or both, a surprising number of businesses don’t have the type of bookkeeping that they should. It’s more than a simple oversight. The result can be audits and even FCPA trouble once the government finds out about the slip up. The latter can result when records tracking the details of an expense, as well as who the recipient was, get lost. Employing FCPA compliance software can help minimize this risk in part by enabling you to better track and organize company expenses.
Ignoring the Small Stuff
It can be remarkably easy, when thinking of FCPA risks, to focus on the larger potential violations. But the smaller day-to-day actions are often the ones that can result in some of the worst FCPA troubles. When formulating travel payment rules, be sure to think of little details such as setting rules for family member travel reimbursement, spelling out what constitutes reimbursable training and spelling out what types of souvenirs are allowable. Working with select FCPA compliance services consultants can help you identify other areas where your policies might benefit from being firmed up.
The government is serious about enforcing FCPA and that means heightened index of suspicion as well as more opportunities for pitfalls for companies. Don’t let simple mistakes result in fines or worse for your company. Instead, firm up your travel expense policy, invest in FCPA compliance software and partner with a FCPA compliance service consultants to identify potential compliance liabilities before they cost you big.