Showing posts from August, 2014

CORPORATE CHATS: Applicability of Foreign Corrupt Practices Act (FCPA) on Philippine Entities

Client inquired about the Foreign Corrupt Practices Act (FCPA) and how the provisions of the law could apply to a Philippine company like their company.

FCPA prohibits U.S persons and, in some cases, foreign persons from corruptly offering, authorizing, or making payments, or giving anything of value, to any foreign official or political parties for the purpose of obtaining or retaining business.

FCPA has two main provisions - the anti-bribery provisions which are enforced by the US Department of Justice and Accounting and Internal Controls Provisions enforced by the U.S. Securities and Exchange Commission.

For the Anti-Bribery Offense, the covered persons are: (i) U.S. persons and companies, (ii) "Issuer" (i.e. any company with shares listed on U.S. Stock exchanges and (iii) any person - foreign companies, their officers, directors, employees, foreign national not resident in US that take an "act in furtherance" while in the U.S.

A domestic corporation with a forei…