Home > Property & Casualty > Compliance standards for D&O policies from Foreign Corrupt Practices Act

Compliance standards for D&O policies from Foreign Corrupt Practices Act

BribeTNLast month, the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) released A Resource Guide to the U.S. Foreign Corrupt Practices Act (FCPA), a 120-page report detailing how the two agencies enforce various elements of the law, including specific explanations about compliance programs, anti-bribery and accounting provisions. The guide aims to clarify FCPA enforcement efforts and procedures and serve as a supplemental resource for U.S. businesses, foreign officials and non-governmental officials who may be impacted by the statute.

The FCPA, established in 1977 as a result of the SEC’s investigations of over 400 U.S. companies’ questionable financial activity with foreign governments, seeks to reduce corruption and money laundering though the global financial system. It prohibits any U.S. person, entity and certain applicable foreign entities to make bribes or offer advantages for the purpose of obtaining or retaining business from a U.S. firm. Financial institutions in particular are subject to stringent requirements under the law, as they are required to operate effective measures of control to prevent fraud, and must demonstrate that they have undertaken necessary levels of due diligence and care when conducting business with customers.

To read more about the new FCPA guide, please click here.

About the Author

Jennifer Sharkey is a Senior Vice President at William Gallagher Associates and Leader of the firm’s ExecutiveRisk Practice. She is responsible for the strategic and tactical leadership of this practice by providing consulting, marketing and negotiation expertise on Directors’ & Officers’ Liability, General Partnership Liability, Private Equity/VCAP, Fiduciary Liability, Fidelity, Kidnap/Ransom & Extortion, Employment Practices Liability and Professional Errors & Omissions Liability.

617.204.6706 | jsharkey@wgains.com | Connect on LinkedIn

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