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Ethics

: Ethisphere Blog - Good. Smart. Business. Profit.

DOJ Goes After Foreign Controlled Money for FCPA Violations

By Ethisphere.com

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The Department of Justice announced last week that it filed a forfeiture action against approximately $3 million in accounts held in Singapore. The DOJ alleges that this money was used to pay off officials in Bangladesh. The kicker is that some of this money was allegedly paid from a U.S. bank account, triggering the Foreign Corrupt Practices Act.

A portion of the money comes from Siemens Bangladesh, which admitted in December 2008 that it paid over $5 million in bribes to Bangladeshi officials over the period of May 2001 to August 2006. In return for the bribes, Siemens asked for favorable treatment during the bidding process of a mobile telephone project, according to a press release from the DOJ. Most of the money reportedly went to the former prime minister of Bangladesh?s son, Arafat ?Koko? Rahman.

This story emphasizes how the Department of Justice continues to expand the international applications of the FCPA. This action certainly tops the punishment that the former French Alcatel executive received last year when the DOJ found that he was in violation of the FCPA after bribing authorities in Costa Rica. This is a good way to keep international companies on their toes as international law slowly works on catching up with the FCPA. Simply put, if you want to compete internationally, don?t bribe.

Full post as published by Ethisphere Blog - Good. Smart. Business. Profit. on January 12, 2009 (boomark / email).