Foreign Corrupt Practices Act and Foreign Account Tax Compliance Act

Panelists: CHARLES KAUFMAN, JAMES WHOLEY, DANYAL SOLOMON, RONALD FIELDSTONE

FCPA prohibits an offer to provide money (or anything of value) to a foreign government official (including any employee of state-owned or state-run enterprise), to obtain, retain, or direct business for an improper business advantage. 

Certain countries are regarded as having a higher degree of endemic business corruption ( and thus potential 3rd-party risk). The respected Transparency International Index of Perceived Corruption lists its highest risk countries (of significant transaction volume) as:

Russia |  China  |  Pakistan |  India  | Vietnam  | Brazil

Investments in or from these countries compel a heightened level of diligence, and will attract greater regulatory scrutiny.