Anti-Bribery, Anti-Money Laundering and Trade Sanctions
Three Regimes, One Programme
Anti-bribery. The US FCPA prohibits offering anything of value to foreign officials to obtain or retain business, and requires accurate books and records; it reaches third parties acting on the company's behalf. The UK Bribery Act is broader: it covers commercial bribery, has no facilitating-payment exception, and creates a strict-liability offence of failing to prevent bribery, with "adequate procedures" as the only defence. Other regimes (French Sapin II, Brazilian Clean Company Act) impose similar strict liability. Red flags: unexplained commissions, offshore payment requests, consultants with no staff or office, vague success fees, state-owned counterparties.
AML. Risk-based approach: customer due diligence and identity verification, beneficial-ownership identification (often a 25% threshold), PEP screening, enhanced due diligence for high-risk relationships, ongoing monitoring, suspicious activity reporting, no tipping off, record retention, and a named compliance officer.
Sanctions and export controls. Screen against relevant lists (OFAC, EU consolidated, UN), remembering that ownership - not just name matching - can taint a counterparty (the 50% rule). Sanctions are typically strict liability; intent is no defence. Export controls capture dual-use goods and, in some regimes, deemed exports of technology to foreign nationals.
Rule of thumb: no payment, gift, sponsorship or consultant fee without a documented business rationale, approval and accurate recording.
Worked example: a local agent asks for a 20% success fee into a third-country account before a ministry award. Stop, re-underwrite the agent, and do not pay until diligence clears.