3rd Parties & Risk Mitigation

Using 3rd Parties

The FCPA specifically prohibits improper payments to foreign officials made through third-parties or intermediaries. The existence of a red flag issue does not necessarily mean that the transaction violates the FCPA but it would warrant further investigation.

If your global activity requires a 3rd party or intermediary make yourself aware of possible red flags.

Red Flag ImageRed flags:

  • Recommended by a foreign official

  • Close relationship with a foreign official

  • Apparent lack of qualifications or resources to perform the desired task

  • Reputation of unethical or suspicious business practices

  • Unusually high commissions or fees

  • Payment in cash

  • Politically active

  • Unwilling to enter into a written agreement or accept the University’s FCPA contract language

  • Refuses to certify compliance with applicable anti-corruption laws

  • Fails to create transparency in expenses and records

FCPA is not meant to hamper international activities. The key is to understand and manage the risk that may be involved in your project.
  • Conduct research on the potential partners.

  • Determine whether partner would be considered a foreign official.

  • Understand the climate of the country you are conducting activities in. -- Visit Transparency International's Corruption Perception Index

  • Determine whether you are providing “anything of value” to the foreign official that may be construed as having a corrupt purpose.

  • When in doubt, contact the appropriate University personnel.

  • Determine whether you are providing “anything of value” to the foreign official that may be construed as having a corrupt purpose.

  • Hosting a foreign official: Ensure that services provided (e.g. hotel, food) cannot be construed as aiming to gain influence.

  • Sponsoring a conference or event scholarship: Confirm that the sponsorship is not made to a foreign official and conditioned upon receiving benefits which may be viewed as a bribe.