Foreign Corrupt Practices Act
Conduct Due Diligence
To be effective and meaningful, due diligence should be tailored to the situation. Robust due diligence practices are not a one-time event but carried out throughout the business relationship.
As part of your initial FCPA due diligence, ask these kinds of questions:
- Is your agent/partner/vendor close to a foreign official?
- What is their reputation?
- Are they qualified to provide the service/goods you are obtaining from them?
- What are the payment arrangements? Are they using a company account (not a personal account)?
- Are they familiar with the FCPA and any local anti-bribery/anti-corruption laws? Are they willing to complete an FCPA certification?
In addition to asking questions, consider having a conversation with the agent/partner/vendor about the FCPA (and any local anti-bribery/anti-corruption laws) to communicate your expectations that the business relationship will be compliant and to gain a sense of whether they understand what that means in practice. While such conversations can be tricky, it may help to introduce the topic by explaining that Yale, like many other institutions, is strengthening its internal practices with regard to all of its partners (not singling out any specific partners).
If you have questions about conducting due diligence, contact the Office of the General Counsel for guidance.