Subject Entities commonly conduct detailed anti-corruption due diligence over potential Local Partners or acquisition targets in order to identify whether or not they can incur risks of liability under FACL, as a result of dealing or acquiring such Local Partners or targets. In addition, they will require the Local Partners to provide certain representations and warranties as well as covenants to ensure FACL compliance, as part of their contracts. Consequently, Subject Entities’ FACL compliance programs may generally entail:

  • Conducting background checks of the local companies and individuals they will be dealing with;
  • Requests to review the Local Partners’ internal compliance policies and procedures with respect to preventing bribery and expect them to have rigorous internal accounting controls and procedures;
  • Requiring the Local Partners to adhere to the Subject Entity’s own FACL compliance policies and Code of Ethics;
  • Requiring the Local Partners to provide very detailed accounting and back-up for expenses, payments and benefits procured to third parties on behalf of the Subject Entity or as part of the services performed for the Subject Entity