Introduction
A. Basic Overview of Statute
The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. (FCPA), makes it unlawful for U.S. persons and entities and others who act within the jurisdiction of the U.S. to make payments to foreign government officials to assist in obtaining or retaining business. It consists of two parts: the anti-bribery provisions and the accounting provisions.
The anti-bribery provisions prohibit persons and entities from making corrupt offers, payments, or promises of payment of money, or anything of value, to foreign officials to obtain or retain business. Since 1977, the anti-bribery provisions have applied to all U.S. persons and certain foreign issuers of securities, but the provision was expanded in 1998 to apply to foreign firms and persons within the United States who cause the furtherance of corrupt payments.
The FCPA's accounting provisions consists of two main requirements. The first, known as the "books and records component," requires companies to make and keep books and records that accurately and fairly reflect the corporation's transactions. The second, known as the "internal controls component," requires companies to create and maintain an adequate system of internal accounting controls.
The U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) have concurrent jurisdiction to enforce different portions of the statute. Over the decades, these regulators have charged hundreds of companies and individuals with violations of the FCPA, resulting in billions of dollars in monetary sanctions, with significantly more enforcement activity in the past 20 years than in previous decades.
To view the full article please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
