The Foreign Corrupt Practices Act

1551 Words7 Pages
The foreign Corrupt Practices Act prohibits paying or offering anything of value to foreign officials for the purpose of obtaining or keeping a business. The FCPA was enacted by congress in 1977 due to various reports that were made by the Security and Exchange Commission (SEC). The Security and Exchange Commission (SEC) reported different issues concerning bribery and illegal payments by United Sates companies. The FCPA states that it’s unlawful to make payments to foreign officials; having a corrupt intend that will make a foreign official to misuse his or her position in directing a business. The FCPA intends to reinstitute public confidence in the integrity of the American business system.

When the FCPA was enacted in 1977, the
…show more content…
The anti-bribery provision of the FCPA applies to all U.S persons and to foreign firms that might make corrupt payments while being in the United States.
The anti-bribery provision of the FCPA proclaims that it’s unlawful for a U.S citizen to make a corrupt payment to a foreign official in the interest of obtaining or retaining a business, or directing a business to, any person illegally. The FCPA also requires companies to make and keep books and records that demonstrates all the transactions that the company has make. Only publicly traded U.S companies and foreign companies with its securities registered under the Exchange Act are required to meet those accounting provisions. The FCPA also states that companies listed in the United States must also maintain a system of internal accounting controls in its company.

The FCPA provisions are enforce by the Department of Justice and the Securities and Exchange Commissions. These two U.S government agencies require all companies to have accurate records and books of all businesses, and have jurisdiction over the FCPA enforcement. The department of justice handles criminal prosecutions. If a person violates the FCPA’s anti-bribery provisions, they have to pay a fine of up to $2,000,000; directors, stockholders, employees, and agents have to pay a fine of up to $100,000, and they can also be subjected to imprisonment for up to five years. Most of the time, the actual fine can be up to twice the benefit
Get Access