My Agent Did What?

International companies often engage third-party agents or consultants to help them operate more efficiently and effectively in foreign locales. There are many reasons why an agent might be necessary, including the frequent need to navigate complex foreign law requirements. However, outsourcing company activities is not without risk, as U.S. law can create liability for a company, and sometimes even its officers, for the actions of third parties taken on a company's behalf. This article examines the risks presented by the use of third parties when doing business internationally, with a focus on the potential for liability under the United States' Foreign Corrupt Practices Act (“FCPA”). It also offers suggestions for how companies may insulate themselves against FCPA liability for the actions of its agents, and how they should address issues as they arise.