Enforcement actions under the U.S. Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act (UKBA) frequently arise from third-party misconduct.
Agents, distributors, consultants, and joint venture partners can expose companies to liability, even where senior management had no direct involvement.
Under the FCPA, organizations must maintain accurate books and records and adequate internal controls. Under the UKBA, companies may face liability for failure to prevent bribery unless they can demonstrate “adequate procedures.”
A risk-based due diligence framework typically considers:
- Country corruption risk
- Industry exposure
- Government touchpoints
- Ownership transparency
- Prior regulatory or litigation history
- Reputation and adverse media
Due diligence is not a one-time check. Ongoing monitoring and documentation are key components of defensible compliance.
Proactive third-party risk management reduces enforcement exposure and strengthens long-term governance.
