Re: Foreign Corrupt Practices Act (FPCA)

Frank used to work has a managing director in the Cuban-Canadian Mining Trade. He was brought to Glencore specifically because he knows the government-controlled Cubaniquel and can use his numerous contacts there. One of his former employee who still works at the state company offers to tell Frank, about their updated bid requirements, which have not been announced to the market for a fee.

Should Frank accept his offer ?

Tyron used to be a profitable trader of oils liquids in Houston but lately has lost his edge, losing or break-even on his Gulf Coast to U.S East Coast supply chains since more than 1 year.

He has hired a business contact in the West-African Market to help him negotiate with the state oil company, Nigerian National Petroleum Corporation (NMPC), a large importer of refined products. Tyron reach out the business contact with the expectations of signing new volume with the importer, turning his supply chains in the red into a profit.

The business contact tells Tyron right-away “this is not America” and that, in his experience, “giving a fee to the stakeholders of NMPC to keep them happy is more critical than being an excellent trader”.

Should Tyron accept the offer ?

 

The penalties under the FPCA are severe and include imprisonment and fines.

It is a US statute that criminalizes bribery of a foreign official the purpose of obtaining or retaining business advantage by inducing the foreign official to:

Make a decision in his or her official capacity

Exercise influence to affect tan act or decision of a government.
Violate a lawful duty.

Confer an improper advantage upon the payers of the bribe.
Bribes may include:

–          An offer or payment of anything in value.

–          Money

–          Gifts

–          Services

–          Charitable donations.

–          Corporate Hospitality

–          Entertainment

–          The Promise of a future employment

–          The Promise of future work, business or the award of a contract.

Foreign Officials may include:

-Government employees

-Elected Officials

-Candidates for Elections

-Employees of international organizations

-Companies controlled by the state.

-Intermediary working on behalf of a foreign official.

 

Simon Jacques

1-226-348-5610 advising the producer, processor and end-user in North America.

 

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