Politically Exposed Persons Screening & FCPA Compliance

The Foreign Corrupt Practices Act (FCPA) was enacted to put a stop to the alarming exercise of bribing foreign officials to facilitate a U.S. company acquiring business contacts or contracts.

The United States government takes bribery and money laundering very seriously, so it’s important that your company be scrupulous in identifying Politically Exposed Persons (PEP). Usually these are officials, either current or former, affiliated with foreign political parties; individuals associated with corporations owned or operated by a foreign government; or their family members or others with whom they are personally or professionally close.

PEP compliance means identifying exposed persons before conducting business

It’s vital to be aware of the PEP status of your customers or potential customers. This way, you can either take care to avoid any appearance of impropriety in your dealings with them or simply stop doing business with them altogether. Either way, knowing who is a Politically Exposed Person is an absolute necessity.

Violations have severe consequences

The consequences for violating FCPA guidelines can be severe. These include exclusion from doing business with the U.S. government or its contracting companies, huge monetary fines, and even criminal prosecution and possible imprisonment.

Visual OFAC helps you stay compliant

The United States and other governments maintain extensive lists of individuals considered Politically Exposed Persons; these lists are constantly updated and added to, and it is each company’s duty to ensure that they do not conduct unauthorized business with PEPs.

As an integral part of your foreign trade compliance program, Visual OFAC keeps you aware of the identities of your customers. With daily updates and re-screenings, you can be certain that all your transactions are above board and that your company is not enabling illegal activity by facilitating bribery or money laundering.

More information about the Foreign Corrupt Practices Act can be found on the United States Department of Justice website.

For more information

To learn more, call (716) 881-2590 and talk to one of our compliance consultants. Or contact us by email.

See Also:

• OFAC Compliance is Mandatory
• About OFAC and Corporate Compliance
• Specially Designated Nationals
• Governance, Risk and Compliance
• FCPA Violations and Penalties
• Screening Foreign Customers
• Sarbanes Oxley (SOX)
• Doing Business with the US Government
• OFAC for EAR99 NLR Goods