FCPA Compliance and Red Flags

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Jason B. Freeman

Jason B. Freeman

Managing Member

214.984.3410
jason@freemanlaw.com

Mr. Freeman is the founding member of Freeman Law, PLLC. He is a dual-credentialed attorney-CPA, author, law professor, and trial attorney.

Mr. Freeman has been named by Chambers & Partners as among the leading tax and litigation attorneys in the United States and to U.S. News and World Report’s Best Lawyers in America list. He is a former recipient of the American Bar Association’s “On the Rise – Top 40 Young Lawyers” in America award. Mr. Freeman was named the “Leading Tax Controversy Litigation Attorney of the Year” for the State of Texas for 2019 and 2020 by AI.

Mr. Freeman has been recognized multiple times by D Magazine , a D Magazine Partner service, as one of the Best Lawyers in Dallas, and as a Super Lawyer by Super Lawyers, a Thomson Reuters service. He has previously been recognized by Super Lawyers as a Top 100 Up-And-Coming Attorney in Texas.

Mr. Freeman currently serves as the chairman of the Texas Society of CPAs (TXCPA). He is a former chairman of the Dallas Society of CPAs (TXCPA-Dallas). Mr. Freeman also served multiple terms as the President of the North Texas chapter of the American Academy of Attorney-CPAs. He has been previously recognized as the Young CPA of the Year in the State of Texas (an award given to only one CPA in the state of Texas under 40).

FCPA Compliance and Red Flags

FCPA Compliance

In order to avoid the consequences of an FCPA violation, it is imperative for companies to enact and maintain detailed compliance policies aimed at the detection and prevention of unethical business practices. Given that there are a wide variety of corruption risks, it is important that a business educate its employees and management about the specific corruption risks relevant to their industry and the countries in which they conduct business. Employees, particularly management-level, should generally be required to undergo updated FCPA compliance training annually. Thorough training on these topics ensures that employees will be able to recognize red flags and understand their reporting responsibilities.

Additionally, a business should conduct an in-depth FCPA risk assessment on an annual basis to ensure strong compliance standards and improve areas of weakness. An effective assessment will include confirmation that internal whistleblowing systems are accessible, as well as ensuring that third-parties are also keeping up with enforcement. In order to maintain an effective compliance program, it is recommended that companies appoint an internal FCPA compliance officer in order to manage the program and ensure its functionality.

The implementation of a corporate compliance program is also imperative as it demonstrates the good faith efforts of the organization. By maintaining a compliance program and continually educating employees, an organization establishes evidence of good faith. This is taken into account if an individual within the corporation violates the FCPA despite the organization’s best efforts.

Recognizing a Possible FCPA Violation

Government-issued guidance has highlighted many different circumstances that may be viewed asindicative of a violation, including:

Corporations and their employees may be subject to penalties due to a violation even if they had no actual knowledge of the corrupt payments. Since liability for a violation often turns on whether the circumstances should have put the organization on notice for possible corrupt activity, recognizing these red flags is critical in order to prevent unethical practices and avoid liability for violations.

International & Offshore Tax Compliance Attorneys

If you need assistance in managing the Tax Compliance process, Freeman Law can help clients navigate International & Offshore tax laws.  We offer value-driven services and provide practical solutions to tax complex issues. Schedule a consultation or call (214) 984-3410 to discuss your tax concerns.

International & Offshore Tax Compliance Attorney