Foreign Corrupt Practices Act

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Foreign Corrupt Practices Act

An amendment to the Securities Exchange Act created to prohibit bribery of foreign officials by publicly held US companies.

Foreign Corrupt Practices Act

Legislation in the United States, passed in 1977, that banned U.S. corporations and others from bribing foreign officials in order to secure better business conditions. Prior to the passage of this Act, many American companies made unethical payments to high government officials in other countries to secure a contract or perhaps a legal change that would make it easier for an American company to conduct business in the foreign country. The Act also increased transparency requirements for some security issuers. It was amended by the International Anti-Bribery Act of 1998.

Foreign Corrupt Practices Act

A 1977 amendment to the Securities Exchange Act that sets penalties for those engaging in bribery of foreign government officials or foreign personnel and that requires adequate records and internal controls in all publicly held companies.
References in periodicals archive ?
After more than 40 years of the FCPA, the impact of corruption around the world is still staggering.
Foreign Corrupt Practices Act, the intention of the FCPA was "to halt those corrupt practices, create a level playing field for honest businesses, and restore public confidence in the integrity of the marketplace." (9) The first section of the FCPA contains the antibribery provision, which prohibits the exchange of something of value for the purpose of influencing an act or decision that would be advantageous for that individual or company.
A company also may suffer reputational harm when news of FCPA violations becomes public.
A comprehensive compliance program is only the first step in avoiding FCPA liability.
the FCPA against foreign companies and individuals and the need to
background and context of the FCPA. Specifically, Part II details the
"Charles's deep experience in FCPA matters is reflected in his outstanding efforts and results over the years as part of the Commissions efforts to combat foreign bribery," said Stephanie Avakian, Co-Director of the SEC's Enforcement Division.
This explosion in FCPA practice, as some have called it, is not limited to numbers of cases and settlements.
In another twist, Anheuser-Busch InBev approved a separation agreement that stopped an employee from continuing to voluntarily communicate with the SEC about potential FCPA violations due to a substantial financial penalty that would be imposed for violating strict non-disclosure terms, according to the SEC.