The US Department of Justice and Securities and Exchange Commission released a new guide to the Foreign Corrupt Practices Act (FCPA). Allan Matheson, managing director of Blue Umbrella, advises Asian companies on how not to fall foul of the US anti-graft rule.
Watch out for politically exposed people (PEP) and entities. The core of the FCPA revolves around the avoidance of bribery of foreign government officials. The Resource Guide includes definitions of “foreign official” which are especially pertinent in Asia. State-owned entities are known to be categorised as an instrument of foreign governments under the FCPA provisions. Therefore, companies must identify and govern these relationships in a much more stringent manner.
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