Of course, there are numerous training on business online. From compliance training, safety training, to leadership training—you won’t miss a business training that quenches your thirst for success. However, there is one component that you must not forget—FCPA compliance training. Designed to help the business achieve total compliance, FCPA training is an important component your business shouldn’t ignore. In this guide, you are going to learn about FCPA training, its contents, benefits, and how to apply it. Keep reading.
What’s FCPA Training?
The Foreign Corrupt Practices Act (FCPA) was passed in 1977. Its intention was to eliminate bribery to revive the public’s wavering trust in the American business system. The Act is typically enforced through FCPA training that’s developed by the American Department of Justice together with the Securities and Exchange Commission.
What Does It Entail?
FCPA training incorporates a wide range of topics, including travel expenses, recordkeeping, corrupt intent, compliance requirements with FCPA, reporting methods, consequences of not complying with FCPA requirements, non-compliance warning signs, and gifts, as well as, money payments.
An FCPA training program should include a codified code of conduct, in-depth risk assessment, autonomous oversight, accurate reporting, and codified compliance policies. Plus, it should include a commitment from a company’s management to be anti-corrupt.
The training program focus on developing an understanding of what the company’s employees can give to customers. This can include stocks, bonds, meals, tickets, etc. It could even be a performance. The gift doesn’t necessarily have to be material. It simply needs to have value. And above all, it shouldn’t be conveyed in a corrupt manner.
Who’s The Training Meant For?
Not all companies will need FCPA training. It’s only those that’ll conduct business with American-based entities. However, it’s always advisable to offer FCPA training if you already have an FCPA policy in place.
Not all companies will need FCPA training. It’s only those who intend to do with American companies, as well as, other US-based entities. However, it’s always important for any business that has an FCPA policy in place to provide training for all its employees regardless of whether or not they interact with US-based companies. Every director and the senior manager will require this type of training. Some employees might also need classroom training, rather than online training. If you have an FCA policy, you’ll also want to make sure that all sales and accounting officers receive FCPA training.
What Are The Benefits Of FCPA Training?
Risk Mitigation
The main benefit of FCPA training is risk mitigation. It helps you avoid non-compliance issues and strengthens international business relations. Plus, policy codifications can also go a long way in speeding up business transactions.
Make sure that your company’s anti-corruption compliance program is clearly communicated and regularly updated. Remember, compliance policies can’t work unless they’re effectively communicated to all employees. Accordingly, the SEC will evaluate if your company has taken the right steps to ensure that relevant policies have been effectively communicated throughout the organization. This can be achieved through periodic training and issuance of relevant certification to all directors, agents, as well as, business partners.
Educated Employees
An FCPA compliance program can help you train your employees in awareness, as well as, understanding of the FCPA. Plus, it makes it easier for you to devise your own company’s compliance program and create a positive culture of compliance.
One of the main goals of any compliance program is to educate employees about the law and how to abide by its guidelines. The DOJ will also want to make sure that your FCPA training is designed to meet the needs of your target audience. So, you’ll first need to assess the level of risk your employees are exposed to. What this means is that you should risk ranking all your employees. And obviously, the sales team would be the highest risk. But there could be others that are also deserving of high-risk training.
Key Takeaway
The most important thing is to make sure that you’ve thoughtfully designed your FCPA compliance program. From risk ranking, you must develop training that addresses the risks those employees are likely to face. Think about who receives it and combine that with backend determination of effectiveness. And all these should be carefully documented. You need to make sure that the training is offered in the desired form and language that’s appropriate for the target audience. Take into consideration how your company has measured the relevance and effectiveness of the training. Many companies haven’t considered this issue yet. They haven’t given serious thought to the effectiveness of their compliance program. And you really aren’t one to be among those, right?
It’s always advisable to start with the evaluation process and then move outward. This typically means starting with attendance. Make sure that all senior officials and company board members have attended the FCPA compliance training. Carefully review the attendance list and confirm if everyone has attended. You may also want to consider making departmental heads accountable for the attendance of their juniors and so on down the chain. Doing this will make it easier for you to create an audit trail for internal, as well as, external assessment. Plus, it will go a long way in simplifying the audit of your training program.
Don’t be left behind. Don’t fall into the pitfall of a heavy fine. Understand what it takes to be FCPA compliant through Nat Law Review. Know the consequences of not complying with the FCPA regulations. Simple steps and strategies can save your company millions of dollars that could have gone to heavy fines.
The Bottom-Line
FCPA compliance is not a joke. It has cost many businesses, directors, and executives dearly. You shouldn’t be the next one on the chopping board. Remember, FCPA is very strict. You may end up losing everything because of simple malpractices. The fines are heavy. But don’t fear it. You can comply. And one of the best ways to achieve FCPA compliance is through FCPA training. The above is all you need to know as far as FCPA training is concerned.
