Financial Institutions and the FCPA

Although financial institutions have robust compliance programs in place, legal encounters regarding the Foreign Corrupt Practices Act (FCPA) still occur. A high priority for the Securities Exchange Commission (SEC), the FCPA prohibits payment of bribes to foreign officials to assist with obtaining or retaining business. It is important for Financial Institutions to screen employers to determine if an employee could pose an FCPA threat to the business. These institutions are also required to follow additional background checks in the hiring processes under federal regulations imposed under the FDIC Insurance Act, the Secure and Fair Enforcement for Mortgage Licensing Act (“SAFE Act”), the Truth in Lending Act (TILA) FINRA rules and provisions of the Securities Exchange Act of 1934 (SEA).

 

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Posted Under: Legal Issues

Post By Ken Shafton (2,325 Posts)