Many companies rely heavily on third parties when operating internationally. Among other things, third parties serve as sales agents, handle customs issues, distribute product and educate the company on local practices. Hiring third parties helps increase revenue, but also puts the company at significant risk of violating the FCPA. If a third party bribes a foreign official, the company that hired the party can be held liable. Effective initial due diligence is crucial in avoiding FCPA liability based on the acts or omissions of third parties, as is continuous monitoring of third parties. Recognizing this, The FCPA Report is publishing a series of interviews with experts from different disciplines – from an outside law firm, an in-house compliance department and an investigative firm – on best practices when handling due diligence on third parties. This article, the third in the series, includes our interview with Gwen Romack, Director, Global Anti-Corruption and U.S. Public Sector Compliance, at HP. The first article in the series contained an interview with Alice Fisher
, a partner at Latham & Watkins and former head of the Criminal Division at the DOJ. The second article in the series contained an interview with Nardello & Co.’s FCPA team
, a group of seasoned investigators with extensive experience in anti-corruption initiatives.