Foreign Corrupt Practices Act :

1275 Words Aug 16th, 2015 6 Pages
Running Head: FOREIGN CORRUPT PRACTICES ACT 1

FOREIGN CORRUPT PRACTICES ACT
BUSINESS LAW
Katherine Hall-Blair
Keiser University

FOREIGN CORRUPT PRACTICES ACT 2

FOREIGN CORRUPT PRACTICES ACT

In the face of improper payments to officials abroad, the United States introduced the Foreign Corrupt Practices Act (FCPA) of 1977. This act was a pioneer step for the government of the United States to combat illegal bribes by not only U.S. companies, but overseas companies as well. Other countries have now taken note and apply their own laws (1). It began with the Watergate scandal and an investigation into then-President Nixon’s re-election campaign contributions. It was discovered that hundreds of
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The accounting provision requires corporations to make and keep books and records that reflect any and all transactions of the corporation, to ensure these records are accurate, and to devise and maintain an acceptable system of internal accounting controls (3). The accounting controls must provide reasonable assurances of: transactions being executed with management’s general or specific knowledge; transactions are being recorded so as to conform with the generally accepted accounting principles or other applicable criteria; accountability for assets is maintained; access to assets is allowed only with management’s general or specific authorization; and, the recorded accountability for assets is compared with existing assets regularly so that appropriate action may be taken in the event of any differences (5). Under the anti-bribery provision, there are two possible affirmative defenses (4). The first one being, if a lawsuit is brought, the defendant can claim the payment was legal in the country in which it was made. However, because legislation against bribery now
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