Module 4 Tool • Is This Payment Legal?
This MAY qualify as a facilitating payment under FCPA. However:
Reimbursing actual, reasonable, documented expenses related to demonstrating products/services is permissible affirmative defense under FCPA.
Document everything: Invoices, receipts, business purpose, approval trail.
Payment to influence discretionary decision = bribery, not facilitating payment. Violates FCPA, UK Bribery Act, and local laws.
Consequences: Up to $2M fine per violation + 5 years imprisonment. Company liable. DO NOT PROCEED.
If the official has discretion in the decision (approve/deny, timing, terms), it's NOT a facilitating payment. It's bribery.
Examples of NON-routine: Permits requiring approval, contract awards, tax assessments, customs valuations.
Fails reasonableness or documentation test. Could be construed as bribe disguised as business expense.
Red flags: Lavish, not documented, no clear business purpose, official's family included, cash instead of direct payment.
FCPA only covers payments to government officials. Private-to-private commercial bribery may still violate local laws or company policy.