Main Provisions Of The Foreign Corrupt Policy Act

This essay requires that I identify the main provisions of the the Foreign Corrupt Policy Act (FCPA) and then set forth the manner in which American businesses can comply with this act so as to compete with foreign businesses. The FCPA was enacted in 1977 during the term of President Jimmy Carter and is codified at 15 U.S.C. Sections 78-dd-1 et. seq.. During the 1970s the Security and Exchange Commission (SEC) commenced numerous investigations of American businesses and their questionable payments to foreign governmental officials. As a result of these investigations, the Foreign Corrupt Policy Act was proposed. The SEC is the equivalent to police departments, but for corporations. The FCPA was enacted as legislation so as to prevent American corporations from bribing foreign officials. All corporations who are listed and traded on the stock markets in the United States must comply with the reporting and accounting standards as required by the SEC. The FCPA has three main components. First it requires corporations to keep detailed books, records and accounts which accurately record corporate payments and transactions. Also, employees must create and manage a sufficient system of internal accounting controls. The second provision regards the bribery of foreign officials. Bribery refers to any gifts, offers, payment, or promise of payment. Even making a relatively small payment of $100 is a violation of the Act. It is also a violation to make a payment to a third partyShow MoreRelatedThe Foreign Corrupt Practices Act1551 Words   |  7 PagesThe foreign Corrupt Practices Act prohibits paying or offering anything of value to foreign officials for the purpose of obtaining or keeping a business. The FCPA was enacted by congress in 1977 due to various reports that were made by the Security and Exchange Commission (SEC). The Security and Exchange Commission (SEC) reported different issues concerning bribery and illegal payments by United Sates companies. 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