Keeping track of current events for continuous improvements a part of the mandates found in the 2019 Guidance. The DOJ clearly expects companies to update its risk assessment, policies, procedures and practices in light of changing circumstances. This means that if a third-party changes characteristics, so that it becomes subject to FCPA scrutiny, a company must be able to evaluate and react appropriately to such change.
For the compliance practitioner, the Hitachi SEC enforcement action provides a valuable reminder that the FCPA covers more than foreign government officials and officials of state-owned enterprises. Political parties are also covered so that if part of your corporate social responsibility includes payments to political party front groups, your company could get into FCPA hot water. Yet it also means you will need to keep abreast of just who your counter-parties are during the entire course of your commercial relationship. This means that keeping up with current events is a must and can facilitate continuous improvement.
Three key takeaways:
- The Hitachi FCPA enforcement action demonstrates the need to keep track of current events for continuous improvement.
- Many product and services providers in the compliance space provide ongoing monitoring for PEPs and SDNs.
- Make sure your partners are still who they say they are!