How much do you know about the Foreign Corrupt Practices Act? Let’s find out.
To commemorate the FCPA’s 40th year, FCPA Professor is presenting the FCPA Challenge.
Each Thursday during 2018, a question will be posed and the answer will be below the fold.
This week’s question is: in 1987 an FCPA reform bill passed in the House of Representatives that would have added this to the FCPA?
Answer: a compliance defense. As stated in the relevant House Report: “The bill establishes . . . a new, “due diligence” defense for civil and criminal liability of issuers and domestic concerns for violations of the FCPA by employees and agents. It provides that if the issuer or domestic concern has established procedures for detecting violations, and if the officers and employees with supervisory responsibility for the employees or agent violating the law have exercised due diligence to prevent the violation, then no vicarious liability will apply.” (See here).