Welcome guidance for companies that struggle with the Foreign Corrupt Practices Act implications of requests for charitable contributions when doing business overseas: The Department of Justice has published an FCPA opinion procedure release that shows that, with the proper due diligence and controls, such donations can be made without running afoul of the statute.
The requestor, a non-profit, U.S.-based microfinance institution that’s converting its local operations from “humanitarian” status to commercial status, was concerned about the FCPA implications of making a compelled grant to a local MFI as a condition to obtaining a license to operate as a financial institution.
