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.
What is the main purpose of 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.
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 …
Who is covered under 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 main components of the Foreign Corrupt Practices Act FCPA?
FCPA has two components, anti-bribery provisions and maintaining accurate books, records, and internal controls so bribes cannot be hidden.
Why was the Foreign Corrupt Practices Act of 1977 enacted?
In response to these high-profile revelations, Congress enacted the FCPA to bring a halt to the bribery of foreign officials and to restore public confidence in the integrity of the American business system. The Act was signed into law by President Jimmy Carter on December 19, 1977.
What does the Foreign Corrupt Practices Act FCPA require that all US corporations under the jurisdiction of the securities and Exchange Commission SEC do?
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’s Enforcement Division has created a specialized unit to further enhance its enforcement of the FCPA.
What is the maximum penalty under the FCPA?
Criminal penalties for violations of the anti-bribery provisions of the FCPA include fines of up to $2,000,000 for corporations and other business entities and up to $100,000 for officers, directors, stockholders, employees and agents of such entities.
What is the Foreign Corrupt Practices Act quizlet?
The Foreign Corrupt Practices Act (FCPA) is a United States law passed in 1977 that prohibits U.S. firms and individuals from paying bribes to foreign officials in furtherance of a business deal. The FCPA places no minimum amount for a punishment of a bribery payment. You just studied 9 terms!
Does FCPA apply to foreign subsidiaries?
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 …