The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business . ... The SEC and the Department of Justice are jointly responsible for enforcing the FCPA.
What are the two main provisions of the Foreign Corrupt Practices Act?
The FCPA has two primary provisions: (1) an anti-bribery provision which makes it unlawful for a U.S. company or citizen, and certain foreign issuers of securities, to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business and (2) an accounting provision which requires companies ...
Who does the FCPA apply to?
The FCPA applies to two broad categories of persons: those with formal ties to the United States and those who take action in furtherance of a violation while in the United States. U.S. “issuers” and “domestic concerns” must obey the FCPA, even when acting outside the country.
What does the FCPA permit?
The FCPA makes it a crime to: 1) make a payment of, offer or promise to pay, or authorize a payment of money or anything of value, directly or indirectly ; 2) to any foreign official, politician, party official, candidate for office; 3) with a corrupt intent; 4) for the purpose of influencing one of these person’s ...
What are the 5 elements of FCPA?
The FCPA makes it a crime to: 1) make a payment of, offer or promise to pay, or authorize a payment of money or anything of value , directly or indirectly; 2) to any foreign official, politician, party official, candidate for office; 3) with a corrupt intent; 4) for the purpose of influencing one of these person’s ...
How do you comply with the FCPA?
- Ascertain and formally determine your level of FCPA risk. ...
- Create and maintain an FCPA compliance policy. ...
- Create an FCPA-based compliance team. ...
- Ascertain the anti-corruption/bribery legislation in other countries. ...
- Implement and maintain an adequate set of internal audit controls.
Does FCPA apply to non citizens?
The Foreign Corrupt Practices Act’s (FCPA) anti-bribery provisions apply to: “ Domestic concerns ,” i.e., all companies incorporated in the United States, Every foreign or domestic company that has its principal place of business in the United States, Individuals who are U.S. citizens, nationals, or residents.
What are some examples of Foreign Corrupt Practices Act violations?
- Falsifying documents and transactions to conceal that payment went to a foreign official or political party.
- Misclassifying a bribe as a commission or classifying as a marketing/selling or cost of goods expense.
What are the major features of the Foreign Corrupt Practices Act FCPA )?
This act had three major parts: (1) it required the keeping by corporations of accurate books, records, and accounts; (2) it required issuers registered with the Securities and Exchange Commission to maintain a responsible internal accounting control system ; and (3) it prohibited bribery by American corporations of ...
What does the Foreign Corrupt Practices Act prohibit?
The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business . ... The sanctions for FCPA violations can be significant.
Why is FCPA important?
In drafted and implemented appropriately, an FCPA compliance program will: serve as an invaluable tool against corruption , promote ethical conduct within the company, reduce the societal costs of corruption, and foster business expansion domestically and globally.
What is FCPA corrupt intent?
The FCPA prohibits payments made with “Corrupt Intent,” which includes intent to secure an improper competitive advantage; influence a foreign official in his official capacity; induce a foreign official to violate the law; or induce a foreign official to use their influence to assist in obtaining or retaining business ...
Does the FCPA include a facilitation payments exemption?
There are two affirmative de- fenses under the FCPA. The exception and the two affirmative defenses are discussed in greater detail below. The FCPA does not apply to any “facilitating or expe- diting payment ,” the purpose of which is to expedite or secure the performance of a “routine governmental action.”
What payments should be analyzed to determine if there was a violation of the FCPA?
Analysis: In determining whether the arrangements you have made may violate the FCPA, you should consider whether: (1) A payment or something of value is offered, promised, or given (2) to a foreign official (3) for a corrupt purpose . In this case, (1) and (2) seems to be met.
Is FCPA extraterritorial?
The FCPA has an extraterritorial jurisdictional reach , meaning its provisions can apply to individuals outside of the United States.
What is a bribery Offence?
Under sections 1 and 2 of the Act, it is an offence to promise, offer or give (active bribery) or request , agree to receive or accept (passive bribery) an advantage (financial or otherwise), in circumstances involving the improper performance of a relevant function or activity.
