What is Foreign Corrupt Practices Act PDF?
The Foreign Corrupt Practices Act (FCPA) of 1977 generally prohibits corrupt payments to foreign officials in exchange for obtaining or retaining business. Congress enacted the FCPA in response to an investigation conducted by the Securities and Exchange Commission (SEC) following the Watergate scandal.
What is the Foreign Corrupt Practices Act and its purpose?
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.
Who is covered by FCPA?
Who Is Covered by the FCPA? 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 are the two parts of the Foreign Corrupt Practices Act?
The FCPA contains two main articles: The anti-bribery provisions. The books, records, and internal control provisions, which speaks to accounting practices.
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 is allowed under FCPA?
This is considered the territoriality principle of the act. In simple words, 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.
Which of the following is allowed under the FCPA?
The act prohibits bribery of foreign officials and intends to deter corruption and abuses of power worldwide. The FCPA contains policies for governing the actions of publicly traded companies, their directors, officers, shareholders, agents, and employees.