Best Practices To Avoid Common FCPA Violations: Third-Parties

While the Foreign Corrupt Practices Act ("FCPA") is an extremely complex act, there are two common FCPA violations of which automotive companies with international operations should be particularly sensitive. We recently discussed the challenges associated with providing gifts, meals, and entertainment to customers. In this post, we discuss another common issue: using third-parties abroad.

Third-Parties

FCPA violations are also frequently attributable to the practices of third-party agents. Accordingly, automotive companies should evaluate third-party contractors through a risk-based approach. In other words, an automotive company need not spend $200,000 on due diligence for a contract of the same value. Below are examples of the types of due diligence to consider when dealing with third-parties: