The abuse of entrusted power for private benefits and gains is a criminal offence in most countries. This can be a very broad concept, but it is generally defined as the offering, promising or requesting of an advantage for an official act or the taking of an advantage obtained through such an act.
The most common types of corruption are bribery and fraud. For instance, bribery is the offering of a benefit to influence an official decision. It can be a financial reward, a favour or anything of value. The bribe is given for the purpose of getting something done through an official action, such as awarding a contract, approving a permit or changing an official policy.
Fraud is an intentional deception to gain an unfair or illegal advantage (financial or otherwise). Examples of fraud can include misrepresentation, embezzlement and money laundering. The best way to identify cases of bribery and corruption is to follow the money trail, for example through official contracts, tender procedures and so on. A red light should go on if there is information about only one supplier at the tender, changes in tender conditions in the last moment or complaints by those who participated in the procedure.
Federal bribery and corruption charges carry serious penalties including significant prison sentences and substantial fines for individuals and companies. Moreover, reputational damage is often severe and can be long-lasting. In addition to the criminal consequences, convicted individuals and businesses may face increased regulatory scrutiny which can lead to audits, investigations and compliance requirements that significantly affect business operations.