The FCPA, Foreign Corrupt Practices Act and the War Against Bribery

Posted by admin on July 24th, 2009 filed in Business, Finance

The United States is not the only country that has laws and regulations concerning the bribery, and the prohibitions the governments of various countries place on officials and on business and financial companies.  What is a unique aspect of the laws and regulations in the United States is that not only is the country concerned with corruption within the country, but throughout other countries, as well.  The laws that govern the States extend to foreign transactions and officials similarly.  One of the most well known and significant reflection of this ideology is the 1977 FCPA, Foreign Corrupt Practices Act.

The regulations outlined in the FCPA state that not only are those practicing bribery in corruption on companies within the country, those found to be practicing those same criminal acts with foreign companies or institutions are also prosecuted and penalized.  There were previous statutes that regulated anti-corruption, prior to this Act of 1977, and those did inform and influence the creation of the FCPA.  The FCPA is all encompassing.  And those found guilty according to the FCPA may also be found guilty and penalized by the other statutes as well.

There are many forms of corruption throughout the companies and the governments of the world, from money laundering to embezzlement to the financing of terrorist organizations.  The FCPA focuses on cases of bribery, be it in the form of the simple act of bribing officials of any country’s government or in the form of doctoring the accounting books.  The regulations are meant to ensure that all money that is changing hands, is for services provided.  Honest services provided.  And to ensure that all transactions retain the utmost integrity and that those transactions are recorded accurately, with no misleading or falsified entries on the accounting documents being tolerated what so ever.  Throughout history, this has been an important concern, and perhaps now more than ever give the current financial climate of the world’s economy.

Related posts:

1. What is Money Laundering?
2. The Varied Reasons to “Know Your Customer”
3. Compliance Regulation
4. Due Diligence Required by the Financial Action Task Force
5. The Need for Transparency in the Fight Against Corruption