VIOLATIONS OF FCPA
To constitute a violation of the anti-bribery provision, four elements must be present:
Payment
According to the FCPA, payments are defined as offers, payments and promises to pay, gifts, promises to give or authorization to pay, offer or give anything of value. Money is not the only payment that is considered "anything of value"; it also includes scholarships, insurance benefits, entertainment, discounts, tax benefits, information and promises of future employment, and travel expenses.
Foreign official
Payments made to a foreign official, political party, political party official or a candidate for foreign political office, are prohibited by the Foreign Corrupt Practices Act.
Payments made to third parties are prohibited if the payer knows that the payment is directly or indirectly meant for the foreign official. The FCPA considers knowledge to include conscious disregard or deliberate ignorance of potentially improper payments.
Corrupt intent
Any payment made with the purpose of the following is defined as corrupt intent:
- Securing an improper advantage.
- Influencing an act or decision.
- Inducing an official to use their influence to affect any governmental act or decision.
- Inducing an official to act in violation of that official's lawful duty.
Business purpose
The objective of the payment must be to obtain, retain and/or direct business, in addition to the payment being made with a corrupt intent.