What are the restrictions imposed by the Foreign Corrupt Practices Act?

The Foreign Corrupt Practices Act (FCPA) is a federal law that imposes restrictions on how businesses can conduct business overseas. It is designed to eliminate bribery and other forms of foreign corruption. The FCPA applies to all U.S. companies as well as foreign companies with a business presence in the United States. Under the FCPA, it is illegal for U.S. companies to offer or pay a bribe to a foreign government official in order to gain an advantage in business or secure a contract. Companies must also maintain accurate financial records and disclose any payments made to foreign government officials. The FCPA also makes it illegal for a company to use its corporate funds to finance the bribery of a foreign official. It also forbids companies from making payments to third parties to facilitate corrupt payments. The FCPA also requires companies to ensure that their foreign operations are conducted in compliance with the law. Companies must implement procedures to prevent improper conduct, such as implementing adequate internal controls or conducting periodic internal audits. Lastly, companies must regularly disclose to the SEC any possible violations of the FCPA. If a company fails to comply with the FCPA, it can face civil and criminal penalties, including fines, disgorgement of profits, and potential imprisonment for company officers.

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What are the restrictions imposed by the Foreign Corrupt Practices Act?

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