How Defense Offsets Intersect with the FCPA

Defense offsets are agreements to do future business in a country in consideration for awarding a defense contract, either directly related to the procurement contract, such as producing part of the product sold in the receiving country, or indirectly related, such as building schools or transferring technology.  In recent years, these agreements have become more opaque and more complex, and given the requisite government interaction, are increasingly fertile ground for the bribery of foreign officials.  In a guest article, David L. Scher and R. Scott Oswald, principal and managing principal, respectively, at the Employment Law Group, examine the relationship between defense offsets and the FCPA and how to mitigate the corruption risk.  See also “Transparency International UK 2012 Defence Industry Anti-Corruption Index Highlights Industry-Wide Deficiencies in Anti-Corruption Practices and Disclosure” (Oct. 17, 2012). 

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