The Foreign Corrupt Practices Act and UK Bribery Act

Extract Overview The Foreign Corrupt Practices Act (FCPA) is a US federal law enacted in 1977, prohibiting companies from paying bribes to foreign government officials and political figures. Companies violating this law by paying bribes are subject to criminal and civil actions, which can result in fines, suspension, and exclusion from government procurement contracts, while the employees and directors can be subject to prison sentences. Principal provisions The FCPA has two principal provisions—the anti-bribery prohibitions, and the books and records requirements: ... Reach of the foreign corrupt practices The reach of the FCPA is broad and includes: Third parties ... Risk areas In the pharmaceutical industry there are a number of key risk areas. Interactions with healthcare professionals and government bodies is one of these and includes: ... It is therefore, important that companies conduct an appropriate level of due diligence in connection with transactions in order to: ... Companies should conduct due diligence before entering into relationships with consultants, agents, distributors, and other third parties. The four principles that should be followed are shown in Table 7.2.1.