Offset Deals Can Pose High FCPA Risks For Defense Industry

Law360, New York (October 22, 2014, 10:35 AM EDT) -- The purpose of this article is to highlight the potentially high Foreign Corrupt Practices Act compliance risks posed by offset transactions for a number of companies in the defense industry and to discuss how to mitigate these risks through an effective anti-corruption law compliance program. My perspective on this comes from working as an in-house and outside counsel for a number of companies in the U.S. aerospace and defense industry for almost three decades and conducting FCPA due diligence on numerous proposed offset brokers and offset projects.

In doing this work, I found most offset brokers to be honest and creative...

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