Anti-Bribery in the Financial Industry

Let’s now cover anti-bribery in the financial industry and the specific laws and regulations that apply.

In the United States, there are several laws and regulations that apply to the financial industry and prohibit bribery. These include the Foreign Corrupt Practices Act (FCPA), which prohibits companies and individuals from bribing foreign officials, and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires companies to disclose any payments made to foreign governments.

In addition to these laws, the financial industry also has its own set of regulations and guidelines that aim to prevent bribery and corruption. For example, the Securities and Exchange Commission (SEC) has issued guidance on the FCPA and how it applies to the financial industry, and the Financial Industry Regulatory Authority (FINRA) has also published a number of rules and regulations related to anti-bribery and corruption.

If a company or individual is found guilty of engaging in bribery, the consequences can be severe. In addition to fines and legal penalties, companies may also face reputational damage and a loss of business. Individuals may also face jail time and other consequences, such as the loss of their professional license or the ability to work in the financial industry.

One way that companies can prevent bribery is by implementing compliance programs. Compliance programs are designed to ensure that companies and individuals comply with the law and ethical standards, and they typically include training, policies and procedures, and internal controls. By implementing effective compliance programs, companies can reduce the risk of bribery and protect themselves from legal consequences.

In the next video, we'll focus on how to apply this knowledge on the job and recognize and avoid potential bribery situations.