Reasonable business expenditures
Although not expressly an affirmative defense, a reasonable and bona fide business expenditure, as described in the FCPA, is unlikely to trigger liability under the AUCL as long as it is supported by a genuine underlying transaction.
However, in practice, the frontier between a bona fide and reasonable business expenditure and a bribe is uncertain. Whether a particular expenditure is problematic depends not only on the type and value of the gift/entertainment offered, but also the circumstances under which it is provided (i.e., the nature of the parties’ relationship and purpose of the gift). For example, a working lunch of a reasonable value following a business meeting is unlikely to be regarded as a bribe, while inviting clients to a night club and ordering expensive wines for them is obviously more problematic.
See full Article.
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