Anti-Corruption & Bribery Prevention Flashcards

Which of the following scenarios most clearly illustrates 'bid rigging' as a form of corruption?

Answer: Competing companies secretly agree to alternate who wins government tenders

Bid rigging occurs when competitors collude to predetermine the winner of a tender, depriving the procuring entity of genuine competition.

Under the concept of 'respondeat superior' in U.S. law, a corporation can be held criminally liable for employee bribery when:

Answer: The employee acted within the scope of employment intending to benefit the company

Under respondeat superior, corporate criminal liability attaches when an employee acted within their employment scope with intent to benefit the organization, even without executive approval.

A whistleblower reports suspected bribery to company management, who then dismiss the employee. Under the Dodd-Frank Act, which protection applies?

Answer: The employee is protected from retaliation and may be entitled to reinstatement and back pay

Dodd-Frank's anti-retaliation provisions protect employees who report suspected securities violations, including FCPA violations, and provide remedies including reinstatement and double back pay.

Which characteristic distinguishes a 'deferred prosecution agreement' (DPA) from a criminal conviction in FCPA cases?

Answer: A DPA suspends prosecution while the company fulfills remediation obligations, avoiding a conviction

In a DPA, the government agrees to defer prosecution for a set period while the company implements compliance reforms; charges are dismissed if the company meets its obligations.

When designing an anti-corruption training program, which group typically presents the HIGHEST risk and should receive enhanced, role-specific training?

Answer: Sales and procurement personnel in high-risk markets

Sales and procurement staff in high-risk markets interact directly with officials and counterparties in situations where bribery risk is elevated, requiring targeted training beyond general awareness.

A company's compliance officer discovers that a subsidiary in a high-risk country has been recording facilitation payments as 'miscellaneous operating expenses.' This practice violates which FCPA provision?

Answer: Both the books and records and internal controls provisions

Mischaracterizing payments violates the books-and-records provision (inaccurate records) and the internal controls provision (failure of controls to detect and prevent misclassification).

Which of the following best describes 'tone at the top' in an anti-corruption compliance program?

Answer: Senior leadership visibly demonstrating commitment to ethical conduct through actions and communications

Tone at the top means leaders consistently model ethical behavior, speak openly about anti-corruption expectations, and enforce consequences—not just issue policy documents.