Fcpa Tolling Agreement

The Foreign Corrupt Practices Act (FCPA) is a federal law that prohibits bribery of foreign officials in order to obtain or retain business. When an FCPA investigation is launched, both the government and the company being investigated may enter into a tolling agreement, which is a legal agreement that suspends the statute of limitations on any potential charges.

A tolling agreement can be an important tool for both the government and the company being investigated. For the government, it allows for more time to gather evidence and build a case against the company. For the company, it provides more time to conduct an internal investigation and potentially negotiate a settlement with the government.

The tolling agreement also provides the company with some protections. It ensures that the company is aware of the government`s investigation and that they are cooperating with it. It also prevents the company from being blindsided by a sudden charge filed against them after the statute of limitations has passed.

The tolling agreement can also be used as a bargaining tool for the company. If a settlement is reached, the tolling agreement can be used to negotiate a shorter time period for the government to file charges against the company. This can provide some certainty for the company and help them move forward with their business operations.

It is important to note that a tolling agreement does not guarantee that charges won`t be filed, but it can help the company mitigate potential damage and potentially avoid more severe penalties.

In conclusion, the FCPA tolling agreement is an important legal tool for both the government and companies being investigated. It provides both parties with additional time to gather information and build a case or negotiate a settlement. Companies should consider the advantages of a tolling agreement in the event of an FCPA investigation.

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