Wednesday, June 10, 2009

U.S. "Foreign Corrupt Practices Act"

Most companies were unaware of a law passed during the Carter administration, making it illegal for companies to pay bribes to facilitate business dealings in foreign countries.

That was, until the U.S. started enforcing this law.

The American Shipper has a lengthy article regarding some of the actions against companies.

Panalpina, who is not even a U.S. company, but an international freight forwarder based in Switzerland, was fined by the U.S. for their practices in Nigeria.
Because of this, Panalpina has discontinued operating in Nigeria.

Amazing we, the U.S. can impose our morals on foreign companies.

I'm not saying that bribes should be sanctioned, but it certainly is commonplace in many countries.

click here for article from American Shipper

Giving ‘grease’ the elbow

Foreign Corrupt Practices Act compliance is a growing concern for logistics companies

Last fall the large Swiss forwarding and logistics firm Panalpina ended services within Nigeria, saying it was doing so as part of its compliance remediation efforts after being investigated for possible violations of the U.S. Foreign Corrupt Practices Act.
The 30-year-old FCPA, which is enforced by the U.S. Justice Department and Securities and Exchange Commission, prohibits bribes or other sorts of corrupt payments to foreign officials for the purpose of obtaining or keeping business.

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