Foreign Corrupt Practices Act (FCPA)

The U.S. Foreign Corrupt Practices Act (FCPA) of 1977, amended in 1988 and 1998, was enacted in the aftermath of the Watergate scandal. Investigations revealed that hundreds of U.S. corporations had engaged in questionable payments to foreign government officials.

[Page 716]The FCPA makes it unlawful for certain classes of persons and entities, including some foreign issuers of securities, to make corrupt payments to foreign government officials to assist in obtaining or retaining business.

The two key elements of the FCPA concern antibribery provisions and accounting provisions with a broad reach over individuals and businesses.

The antibribery provisions prohibit willful use of the mail or any means of interstate commerce corruptly in furtherance of making any offer, payment, promise to pay, or authorization of the payment of money or ...