Question

What is the main purpose of the Foreign Corrupt Practices Act (FCPA)?

Accepted Answer

The main purpose of the Foreign Corrupt Practices Act (FCPA) is to prevent U.S. companies and individuals from bribing foreign government officials to obtain or retain business. The FCPA has two main provisions: an anti-bribery provision and an accounting provision. The anti-bribery provision prohibits U.S. companies and individuals from making corrupt payments to foreign officials to influence any act or decision of that foreign official, to induce the foreign official to do or omit to do any act in violation of the lawful duty of such official, or to secure any improper advantage, in order to obtain or retain business. The accounting provision requires companies that are listed on U.S. stock exchanges to maintain accurate books and records and to implement internal controls to prevent and detect bribery. The FCPA applies to a broad range of activities and has significant penalties for violations, including fines and imprisonment. Its aim is to promote fair competition and ethical business practices in international trade by preventing bribery and corruption.

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What is the main purpose of the Foreign Corrupt Practices Act (FCPA)?