• Facilitating Payments Under the FCPA: Questions You Must Ask to Avoid Liability
  • October 19, 2007 | Author: Matt T. Morley
  • Law Firm: Fried, Frank, Harris, Shriver & Jacobson LLP - Washington Office
  • Every international business faces the issue of what to do when a foreign bureaucrat demands "a little something extra" for doing his job in a timely manner. While one might simply consider this a cost of doing business in a different culture, it would be a mistake to make such payments without considering the substantial risks that may be involved -- risks that are well illustrated by a recent SEC enforcement action. In SEC v. Delta & Pine Land Company, a US-based seed company and its operating subsidiary in Turkey settled charges that they had violated the Foreign Corrupt Practices Act (FCPA) by making payments to agricultural inspectors in securing inspections and obtaining certifications required to sell or export cottonseed.