If you or your company is facing an FCPA investigation, you’re probably feeling overwhelmed and uncertain about what comes next. Being accused of foreign bribery or corruption can threaten your career, your business and your financial stability.
Understanding how to respond properly when confronted with FCPA allegations becomes critical for protecting your interests.
1. Immediate steps when the investigation begins
Stop all potentially problematic international activities and preserve all relevant communications and documents related to your foreign business operations. Do not destroy any records or attempt to contact foreign officials or business partners who might be involved.
Get in touch with your insurance carrier immediately if you have directors’ and officers’ coverage that might apply to FCPA matters. Document everything about how you first learned of the investigation and any communications with government investigators.
2. Understanding the charges against you
FCPA cases typically involve allegations of bribing foreign government officials to secure business deals or get competitive advantages.
The government may also allege that you violated books and records by failing to maintain accurate financial documentation or implement adequate internal controls to prevent corruption. These accounting violations can carry penalties even in the absence of real corruption.
3. Cooperating with government investigators
Government agencies like the Department of Justice have broad investigative powers in FCPA cases. They can subpoena documents, interview employees and conduct extensive reviews of your business operations.
Your level of cooperation can reduce potential penalties. By voluntarily disclosing information, you may end up paying reduced fines, but also provide the government with evidence to be used against you. You need to be tactful when deciding about this to avoid getting into too much trouble when you can prevent it.
4. Protecting your interests and preparing for outcomes
Implement immediate compliance improvements to demonstrate good faith efforts to address any deficiencies in your anti-corruption programs. This shows investigators that you take the allegations seriously and are committed to preventing future violations.
Facing an FCPA investigation requires careful navigation of complex legal considerations. Because of the severe potential consequences, consider seeking experienced legal guidance immediately to protect your rights and develop the strongest possible defense strategy.