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

The Foreign Corrupt Practices Act (FCPA) is a federal law in the United States that strictly prohibits bribery of foreign government officials by U.S. companies or individuals in order to gain a competitive advantage in the marketplace. Under this law, any company or individual found to have bribed a foreign official can be subject to criminal prosecution and severe penalties. The FCPA prohibits the bribery of foreign officials to gain an advantage in business dealings, and it is strictly enforced in Washington. Companies must maintain accurate books and records of all accounting and financial activities and must have an appropriate system of internal controls in place to prevent bribery. The FCPA also restricts the use of “facilitating payments,” which are payments to officials in foreign countries made to secure a service that a foreign government is otherwise obligated to perform. Companies or individuals found to be involved in facilitating payments can be subject to criminal prosecution and serious civil penalties. To ensure compliance with the FCPA, companies should have a thorough understanding of their obligations under the law and create an ethical corporate culture that discourages bribery and corruption. Companies should also develop and implement policies and procedures that are designed to identify and prevent the occurrence of bribery.

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

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