Global Trade & National Security |
Foreign Corrupt Practices Act (FCPA) and Anti-Corruption

Legal Dive interviews Robert A. Johnston, Jr. on how third party partners can expose companies to compliance issues with the federal Foreign Corruption Practice Act (FCPA), and how to mitigate that risk. “As a result of [Biden Administration] initiatives, more companies than has typically been the case can expect to get snagged in FCPA enforcement activities,” says Johnston. “It’s not easy to have visibility into what [a third party] partner is doing outside your purview.” He recommends proactive measures, such as a corporate intelligence report, and adequate representations and warranties in your partner contracts: “Companies can go a long way to reduce their liability by engaging in … proactive compliance—setting up controls that are appropriately scoped, and resourced, to the risks as they move into a country, either through an acquisition or a venture.”

Doreen M. Edelman is interviewed on the podcast FCPA Compliance Report on why every compliance professional needs to be ready to comply with CFIUS and where CFIUS may be headed under the Biden administration. Edelman urges parties to a transaction to consider‒long before closing‒any factors that could trigger CFUIS scrutiny, such as how the technology in question will be classified for exports, who are the ultimate beneficiaries, and possible exit strategies.

Doreen M. Edelman is featured in a two-part FCPA Compliance Report podcast (December 10; December 17, 2018) discussing the Committee on Foreign Investment in the United States (CFIUS). In part one, Edelman highlights the recent increase in non-compliance penalties, the development of national security measures due to disruptive technologies, and the expansion of CFIUS jurisdiction to companies purchasing non-controlling investments in U.S. companies. In part two, Edelman discusses the requirements for mandatory filings under the CFIUS Pilot Program.