Essay On Foreign Corrupt Practices Act

1405 WordsDec 1, 20176 Pages
Vu Le Vu LGLS 3562 Michael Valenza December 7th, 2017 Foreign Corrupt Practices Act (FCPA) FCPA Background The U.S. Foreign Corrupt Practices Act (the “FCPA” or the “Act”) is one of the primary statutes in the U.S. for fighting against corruption around the world. After the Watergate scandals and revelation of widespread corruption and bribery all over the globe by U.S companies, the FCPA was established in 1977 by Congress [1]. Before passing the FCPA, the government found that more than 400 companies had paid millions of dollars in briberies to foreign government officials to secure businesses overseas. It has been reported that firms have secretly used the money to illegally contribute to the United States and make illegal payments to…show more content…
The FCPA addresses three categories of persons and entities; issuers, domestic concerns and other people (including foreign persons or their agents) that violate the law while on the territory of the U.S. [1]. "Issuer" means any company whose class of securities are listed on a national securities exchange in the United States. Alternatively, any company whose class of securities are quoted on the free market in the United States and requires submission of periodic reports to the SEC is an issuer. Therefore, the company does not need to be a US company to be a publishing company. Foreign companies with US custody receipts listed on a US trading floor are also issuers. As of December 31, 2011, 965 foreign companies were registered with the SEC [2]. Speaking of domestic concerns, they could be any individual who is a citizen, national or resident of the United States. They could also be any company, association, partnership, joint stock company, business trust, or a proprietary organization formed under the laws of the United States or its states, territories, properties or communities, or whose headquarter of business is in the United States [2]. Moreover, the FCPA applies to the officers, directors, employees, agents, and shareholders of the issuers and domestic concerns. The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) share the power to
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