Ask the Experts: Anti-Corruption Enforcement in Aviation
The Foreign Corrupt Practices Act (FCPA) is a far-reaching piece of U.S. legislation highly relevant to companies doing business with foreign governments and foreign state-owned entities, and of particular interest to the aviation sector. Having an effective compliance program and effective internal controls are critical safeguards against running afoul of the FCPA.
Simply having the right policies and procedures is not enough. Companies should conduct risk assessments to evaluate the anti-corruption risk associated with their business. They should follow through with implementing a compliance program and internal controls that adequately addresses that risk, including conducting risk-based due diligence of third parties where appropriate, training employees, and monitoring higher risk third party relationships. Misconduct very frequently involves a third party, and companies often fail to ask the right questions prior to working with third parties. Fortunately, there are sound guides available for building an effective anti-corruption compliance program.