USA Foreign Corrupt Practices Act (FCPA)

FCPA is a US law that prohibits US companies and individuals from bribing foreign officials to obtain or retain business. Learn about its implications and how to ensure compliance.

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USA Foreign Corrupt Practices Act (FCPA)

FCPA is an anti-corruption law enacted in 1977 to curb bribery and corruption involving U.S. individuals and entities in foreign countries.
It is enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC).

Key Features of the FCPA

Prohibition of Bribery: Prohibits offering, paying, promising, or authorizing anything of value to foreign officials to gain or retain business or secure an improper advantage.
Scope of Application – Who is Covered?
- S. Individuals and Companies: Includes citizens, residents, and corporations operating in or from the U.S.
- Foreign Companies and Nationals: If their activities have a connection to the U.S., such as using U.S. banking systems.
- Publicly Listed Companies: All companies listed on U.S. stock exchanges are subject to the FCPA’s accounting provisions.
Jurisdiction: Applies to actions conducted anywhere in the world if they involve U.S. entities or their agents.