What is the purpose of the Foreign Corrupt Practices Act?

The FCPA has two primary provisions: (1) an anti-bribery provision which makes it unlawful for a U.S. company or citizen, and certain foreign issuers of securities, to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business and (2) an accounting provision which requires companies …

Why was the Foreign Corrupt Practices Act criticized?

Passed in 1977, the Foreign Corrupt Practices Act (FCPA) was a rarity and was roundly criticized as creating an unfair playing field for US companies. Technically the FCPA applies only to bribes paid (or offered) to foreign government officials to obtain or retain business, or develop an unfair competitive advantage.

Is the Foreign Corrupt Practices Act effective?

The FCPA has proven to be one of the most powerful and effective transnational anticorruption laws in the world. It has two main provisions, centered around anti-bribery and proper accounting. The FCPA is extremely broad in scope and applicable worldwide.

Who does the US Foreign Corrupt Practices Act apply to?

Who Is Covered by the FCPA? The FCPA applies to two broad categories of persons: those with formal ties to the United States and those who take action in furtherance of a violation while in the United States. U.S. “issuers” and “domestic concerns” must obey the FCPA, even when acting outside the country.

Which of the following best describes an important provision of the US Foreign Corrupt Practices Act?

Which of the following best describes an important provision of the U.S. Foreign Corrupt Practices Act? The internal accounting controls should be examined, and if material weaknesses are found, controls must be strengthened.

Which is true of the US Foreign Corrupt Practices Act?

Under the Foreign Corrupt Practices Act (FCPA), it is unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business.

What are the complications of the Foreign Corrupt Practices Act?

Violating the Foreign Corrupt Practices Act Violators of the act can face substantial sanctions and penalties, and both criminal and civil actions may be charged. Punishments include fines as much as twice the amount of the benefit expected to be received from the bribery.

Which of the following is true concerning the Foreign Corrupt Practices Act?

Which of the following is true of the Foreign Corrupt Practices Act of 1977? It is designed to stop bribery of foreign officials by American citizens. Intermediaries, under the FCPA, are: prohibited from making payments that can go to a foreign official.

What are the benefits of complying with the FCPA?

In drafted and implemented appropriately, an FCPA compliance program will: serve as an invaluable tool against corruption, promote ethical conduct within the company, reduce the societal costs of corruption, and foster business expansion domestically and globally.

Which of the following criminalized the offering or giving of anything of value to officials of foreign governments in an attempt to influence their official actions?

The Foreign Corrupt Practices Act (FCPA) is a U.S. statute that prohibits firms and individuals from paying bribes to foreign officials to further business deals.

What are the two main components of the Foreign Corrupt Practices Act FCPA?

FCPA has two components, anti-bribery provisions and maintaining accurate books, records, and internal controls so bribes cannot be hidden.

Which of the following best illustrates the Foreign Corrupt Practices Act?

88) What results when the retail sector is very concentrated? The increased level of competition is one of the reasons organizations should segment the market. The Jade Market in Hong Kong, and the Gold Market and the Spice Market in the Covered Bazaar in Istanbul, Turkey, are examples of specialty stores.