Foreign Corrupt Practices Act :

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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 U.S. corporations held large cash slush funds, which the Securities Exchange Commission (SEC) determined were destined to be paid out as bribes to foreign officials as hundreds of millions had already been spent for that same reason (1). Even though some European countries held that bribing officials was legal, in fact, an expense that could be reported and deducted on corporate tax returns, the Congress of the United States passed, in 1977, the Foreign Corrupt Practices Act (FCPA)(1). This act was intended to stop the bribing of foreign officials in order to obtain or retain business and reached all U.S. publicly traded companies, along with their directors, officers, managers, employees, agents, and stockholders (2). Amendments

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