Or disclose bribe payments to the authorities of criminal liabil- ity did not make the bribes legal.” ypter The FCPA: Reasonable and Bona Fide Expenditures Anti-Bribery Provisions The FCPA allows companies to provide reasonable and bona fide travel and lodging expenses to a foreign official, and it is an affirmative defense where expenses whether a particular expenditure is appropriate or may risk are directly related to the promotion, demonstration, or violating the FCPA: explanation of a company’s products or services, or are ¢ Donot select the particular officials who will par- related to a company’s execution or performance of a con- ticipate in the party's proposed trip or program'“” tract with a foreign government or agency.'“ Trips that or else select them based on pre-determined, merit- are primarily for personal entertainment purposes, how- based criteria.’ ever, are not bona fide business expenses and may violate e Pay all costs directly to travel and lodging vendors the FCPA’s anti-bribery provisions.'* Moreover, when and/or reimburse costs only upon presentation of a expenditures, bona fide or not, are mischaracterized in a receipt!” company’s books and records, or where unauthorized or e¢ Donot advance funds or pay for reimbursements improper expenditures occur due to a failure to imple- in cash,!°° ment adequate internal controls, they may also violate e Ensure that any stipends are reasonable approxima- the FCPA’s accounting provisions. Purposeful mischarac- tions of costs likely to be incurred’?! and/or that terization of expenditures may also, of course, indicate a expenses are limited to those that are necessary and corrupt intent. reasonable.!? DOJ and SEC have consistently recognized that busi- e Ensure the expenditures are transparent, nesses, both foreign and domestic, are permitted to pay for both within the company and to the foreign reasonable expenses associated with the promotion of their government.’ products and services or the execution