The FCPA—engaging third parties and record keeping (US) [Archived]

Produced in partnership with Stephen R. Martin of Arnold & Porter LLP
Practice notes

The FCPA—engaging third parties and record keeping (US) [Archived]

Produced in partnership with Stephen R. Martin of Arnold & Porter LLP

Practice notes
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ARCHIVED: This archived PrACTice Note is not being maintained.

Most multinational companies today engage Third parties, which can provide them with valuable resources for conducting business throughout the world. Third parties also can provide companies with a high risk of corruption that can lead to potential violations of the Foreign Corrupt Practices Act (FCPA). However, with proper diligence, contractual provisions, training, and oversight, companies can maintain control over FCPA risk and reap the benefits of third parties’ contribution to their businesses.

The FCPA prohibits corrupt payments made through any third party 'knowing' that some or all of the payment will be paid to a foreign government official. Third parties can include agents, distributors, consultants, contractors, and subcontractors. They can also include service-providers, suppliers, and other non-intermediary third parties. The FCPA does not require actual knowledge of a third party’s acts; rather, willful blindness is sufficient to impute knowledge. That means companies cannot simply turn a blind eye or otherwise ignore signs of possible bribery by the third parties

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Jurisdiction(s):
United Kingdom
Key definition:
Third parties definition
What does Third parties mean?

If a service allows the placement of cookies by third parties, they should be named and information should be given about the purposes for which those cookies will be used As explained in Clear and comprehensive information, third parties given access to any cookies must also be appropriately identified.

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