Financial Crime World

COCOS (KEELING) ISLANDS TIGHTENS THE SCREWS ON FOREIGN CORRUPT PRACTICES ACT

COCONUT CREEK, COCOS (KEELING) ISLANDS - In a bid to crack down on corporate corruption, the government of Cocos (Keeling) Islands has announced plans to strictly enforce the Foreign Corrupt Practices Act (FCPA), a law that prohibits payment of bribes to foreign officials to obtain or retain business.

What is the FCPA?

  • The FCPA is a US law that requires companies whose securities are listed in the US to make and keep books and records that accurately reflect their transactions.
  • It also mandates the devise of adequate systems of internal accounting controls to prevent corrupt practices.
  • Violations of the FCPA can lead to civil and criminal penalties, including fines, disgorgement, and imprisonment.

Zero-Tolerance Approach

The government of Cocos (Keeling) Islands is taking a zero-tolerance approach to FCPA violations, with senior-level executives facing mounting risks of liability under the law. According to a government spokesperson:

“We expect all companies operating in Cocos (Keeling) Islands to have a comprehensive compliance program in place, including effective training for relevant employees and adequate internal accounting controls.”

What are the Government’s Plans?

  • The government is cracking down on corrupt business practices, including bribes paid to obtain or retain contracts, favorable tax treatment, and customs duties.
  • It will not tolerate any attempts to circumvent the rules or influence public officials through bribery or other means.

FCPA Requirements

The FCPA applies broadly to payments intended to assist a company in obtaining or retaining business for some person. The law requires companies to have adequate systems of internal accounting controls in place to prevent corrupt practices. Individuals face mounting risks of liability under the FCPA, with senior-level executives facing personal responsibility for ensuring that their company’s compliance program is effective.

The US Department of Justice has stated that the prosecution of individuals is a priority in enforcing the FCPA. Companies operating in Cocos (Keeling) Islands are advised to take immediate action to ensure their compliance program meets the requirements of the law.

In conclusion, the government of Cocos (Keeling) Islands is taking a tough stance on corporate corruption, and companies operating in the island nation should be aware of the FCPA requirements and implement effective compliance programs to avoid potential penalties.