The Foreign Corrupt Practices Act
Which act outlaws the payment of bribes to foreign government officials to gain businesses quizlet?
allow for “facilitating payments.” The Foreign Corrupt Practices Act outlawed the paying of bribes to foreign government officials to gain business.
Which Congress outlaws the payment of bribes to foreign government officials to gain business?
The Foreign Corrupt Practices Act (FCPA, the Act) is a United States law that prohibits U.S. firms and individuals from paying bribes to foreign officials to further business deals. The FCPA contains two main articles: The anti-bribery provisions.
What does the Foreign Corrupt Practices Act do?
Under the Foreign Corrupt Practices Act (FCPA), it is unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business .
Which of the following US laws prohibits payments to foreign officials for the purpose of obtaining or retaining business?
The Foreign Corrupt Practices Act (FCPA or the Act), § 15 U.S.C. 78, et seq. , makes it unlawful for U.S. persons and businesses, and certain foreign issuers of securities, to make a payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person.
How do facilitating payments benefit a company?
The benefits gleaned directly from the facilitating payment , such as a permit obtained or a service expedited, may lead to increased profit or business. The company exercises their right, as defined by the FCPA, to pay facilitating payments in order to get what they want from foreign officials.
What are facilitation payments also known as?
Definition. A small bribe , also called a ‘facilitating’, ‘speed’ or ‘grease’ payment; made to secure or expedite the performance of a routine or necessary action to which the payer has legal or other entitlement.
Who does Foreign Corrupt Practices Act 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.
Does FCPA apply to non citizens?
The FCPA is enforcement against all US based companies, wherever they operate across the globe; against all US citizens anywhere in the world; against all foreign subsidiaries of US companies across the globe; against any foreign company which has a US subsidiary or which does business in the US; against any company ...
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 ...
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 ...
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 two main components 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 ...
Who does the UK bribery Act apply to?
The Act applies to all companies which carry on a business, or part of a business, in the United Kingdom , as well as those which are incorporated under the law of the United Kingdom – as such it has a broader application than the offences set out above. However it only applies to companies, not to individual directors.
What activities does the FCPA make illegal for US companies and their employees?
The FCPA has two primary sections. The first section makes it illegal to bribe foreign officials (the anti- bribery provisions) and the second section imposes record keeping and internal accounting requirements upon publicly traded U.S. companies like the Company (the accounting provisions).
What are the primary anti bribery regulations?
The Foreign Corrupt Practices Act’s anti-bribery provisions make it illegal to offer or provide money or anything of value to officials of foreign governments or foreign political parties with the intent to obtain or retain business. ... any person who violates the Foreign Corrupt Practices Act while in US territory.
