Certain company processes might not constitute traditional notions of “internal controls,” but FCPA enforcement officials have taken the position that a wide range of activities is covered by the term.
For example, in Orthofix, the SEC found that the company failed to maintain adequate internal controls when the company’s FCPA compliance policy and FCPA-related training in Mexico were provided only in English and not in Spanish. In Eli Lilly, the SEC found that the company lacked sufficient controls when it failed to have a due diligence and monitoring process in place to ensure its Brazilian distributors were not paying bribes on its behalf.
Under the FCPA, companies can be punished not only for the wrongful things they do, like paying bribes. They can also be punished for certain things they don’t do. In particular, the FCPA’s accounting provisions require companies to have internal controls in place. When companies do not have certain protections like appropriate accounting systems and anti-corruption policies, procedures, and processes, they risk violating the law.
Specifically, the FCPA’s accounting provisions require issuers (both U.S. and non-U.S. companies that are publicly traded in the United States) to establish and maintain a system of internal controls sufficient to assure that (i) transactions are executed in accordance with management’s authorization; (ii) access to assets is permitted only with the proper authorization; and (iii) the accounting records reflect the existing assets. FCPAméricas overviews...Read more
The FCPAméricas Blog is a go-to resource for anti-corruption professionals throughout the hemisphere. It provides commentary and analysis from experienced practitioners on anti-corruption developments in Latin America. The blog focuses primarily on compliance and enforcement issues related to the U.S. Foreign Corrupt Practices Act (FCPA), and is the only FCPA resource that provides regular content in English, Spanish, and Portuguese.
The Blog Manager position is a unique opportunity for a student, young lawyer, or compliance professional looking to make contacts, burnish FCPA credentials, contribute posts on a respected platform, and generally gain exposure to anti-corruption topics. The ideal candidate will have excellent written English, and a strong interest in anti-corruption is...Read more