Tips for Managing FCPA Risk

  • Steer clear of any payment that may be perceived to give you an advantage over others or otherwise could be construed to be a bribe.
  • Conduct thorough due diligence on any third party including vendors, agents, consultants and partners.
  • Pay attention to red flags:  the third party was recommended by a foreign official; unusual payments (cash fees or unusually high commissions) or financial arrangements (personal off-shore accounts); secrecy (e.g., lack of transparency in invoices); lack of qualifications to perform services.  If these red flags are present you must conduct more thorough due diligence to ensure this relationship will comply with the FCPA and local laws.
  • Maintain accurate and current financial records of international transactions, including receipts.
  • Implement and maintain robust internal controls.
  • Know, and apply, Yale’s policy “Gifts from University Funds” (Policy 3303).
  • When giving gifts, stick to items of nominal value, be mindful of how the recipient may interpret the gift, present it publicly and as an expression of conventional hospitality, and consider presenting as gifts items that are tied directly to Yale and its mission (e.g., The Yale Collection).
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