Priyanka's Blog

February 3, 2010

FCPA in a nutshell

Filed under: Anti Corruption — P S @ 11:49 am
Title: Foreign Corrupt Practices Act, 1977 of the United States of America

History: Passed as a result of Congressional hearings addressing corporate slush funds, illegal campaign contributions and international bribery.

Purpose: It is considered as the first aggressive anti-bribery statute among developed nations.

Prohibits: The FCPA prohibits offer, payment, promise or authorization to pay anything of value to any foreign government official for purposes of influencing any act or decision in order to obtain or retain business

Requires: Issuers must make and keep accurate books and records, devise and maintain a system of internal accounting controls.

Jurisdiction: All “issuers”, i.e. corporations that issue securities registered in the United States or who are required to file periodic reports with the Securities & Exchange Commission (SEC); Foreign Companies with ADRs listed on U.S. exchanges, U.S. based private companies; Employees of these entities.

Enforcement: Criminal violations are prosecuted by the U.S. Department of Justice (DOJ); Civil violations are enforced jointly by the SEC and DOJ

 

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