Under the provisions of the Foreign Corrupt Practices Act (FCPA), bribery of foreign government officials - directly or indirectly – is a federal crime. Companies doing business in the Middle East are in effect required to clarify that the local business they are partnering with is not a conduit for kickbacks and payoffs to local officials.
Most Middle Eastern companies are privately held, with obscure and often convoluted holding structures. From a cultural perspective, enquiring openly into the holding structure can give personal offense to the local partner, and have an adverse impact on the business relationship.
In avoid FCPA liabilities, companies entering into business agreements in the Middle East turn to Info-Prod in order to clarify their potential exposure.
Info-Prod conducts its examination in an independent and discreet manner. The local company remains unaware of the person or entity that required the check. Often, the U.S. party requests that the local firm remain unaware that any examination had even taken place.
Utilizing our vast business network across the Middle East and beyond, Info-Prod clarifies the organizational and holding structure of the local, privately held companies, allowing the U.S. firm to proceed with the business relationship.
Our FCPA unit helps businesses, universities and financial firms avoid FCPA violations.
FCPA Case Study:
A major U.S. defense and aerospace corporation entered a business agreement with an Abu Dhabi-based company to service a multi-million dollar contract issued by the government of Abu Dhabi. Though privately held, the local company’s ownership was not in the public domain.
Rumors emerged that the some of the major shareholders were government officials, prompting concern by the American corporation. However, the local firm’s manager was a highly influential and well connected person, and the American firm was eager to avoid giving personal offense by questioning his good name or respectability.
Info-Prod conducted a discreet FCPA inspection. We uncovered first and second tiered shareholders, none of whom were currently serving government officials. The local company was cleared under FCPA provisions.