Commission or Bribe?
Supposed youve decided to move part of your business overseas, those administrative fees could look like illegal bribes.
Lets say that to open a manufacturing plant in Southeast Asia you need a permit from the local government.
A government agent there offers to get you the permit within a week and his commission will only be $1,000.
Back off! Watch your step here.
In many countries, kickbacks and bribes have long been the accepted cost of doing business.
However, the Foreign Corrupt Practices Act (FCPA), enacted by Congress in l977, prohibits bribery of officials in other countries.
Its illegal to make payments, offers or even promises of anything of value to foreign officials to obtain or retain business or get an advantage.
Its also illegal to make such payment to a third party (say the officials wife or sibling).
For over 20 years the United States was the only country trying to prohibit bribery to foreign officials.
U.
S.
companies complained they faced either bribing foreign officials and risking FCPA prosecution or losing the contract.
Since then, with the urging of the US, international organizations have enacted treaties and conventions aimed at stamping out this practice.
The European Union, the United Nations, and the World Bank have adopted resolutions and policies against corruption which has helped to level the playing field.
You dont want to get tangled up in bribery! The problem is its rarely easy to tell whether a proposed payment is actually a bribe.
For instance, the FCPA doesnt prohibit grease payments
