FCPA Case Study Guide

Foreign Corrupt Practices Act Case Study
Respect the cultures, and religious practices of the locals.
Create a compliance policy with the country that the company is conducting business.
All employees are now subjected to mandatory training of at least 10 hours in preventing violations of the Foreign Corrupt Practices Act.
Distribute the Ethics Policy Guide in English and the language(s) of the local area.
Person(s) who have conducted illegal business not compliant to the Foreign Corrupt Practices Act or the Civil Rights Act of 1964 will be reported to
the U.S. Securities and Exchange Commission (SEC).
Strengthen the auditing of future company payments and revise old ones to ensure accountability of all payments.
The FCPA applies to all U.S. companies expanding business in other countries
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Foreign Corrupt Practices Act
FCPA PAPER
The Foreign Corrupt Practices Act of 1977 (FCPA) evolved from investigations by the Office of the Special Prosecutor that provided evidence of
illegal acts perpetrated by U.S. firms in foreign lands. More than 400 U.S. companies admitted to making questionable payments to various foreign
governments and political parties as part of an amnesty program (U.S. Department of Justice http://www.usdoj.gov). Given the environment of the
1970s and the proliferation of white–collar crimes (e.g., insider trading, bribery, false financial statements, etc.), particularly the payments made to
foreign officials by corporations, Congress felt obligated to introduce legislation that led to the act. Congress's objective was to restore confidence ...
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This provision of the act applies to issuers of registered securities and issuers required to file periodic reports with the SEC.
The accounting provisions require companies to "keep books and records, and accounts, which, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of assets". The purpose of this accounting provision is to make it difficult for organizations to "cook the books" or use
slush funds to hide any corrupt payments. Representative means for transfer of corrupt payments which included overpayments, missing records ("No
receipt"), unrecorded transactions, misclassification of costs and, retranscription of records. The accounting provisions include a requirement that
companies design and maintain adequate systems of internal accounting controls. This will provide reasonable assurance that transactions are executed
in accordance with management's authorization, transactions are recorded as necessary and access to assets is permitted only in accordance with
management's authorization. Any internal document that misrepresents the actual nature of a financial transaction could be used as the basis for a
charge that the "books and records" section of the FCPA has been violated.
Enforcement of the act is shared. Civil and criminal enforcement of the bribery provisions for those not required to file with the SEC rests with the
Department of Justice. Responsibility for

U.s. Foreign Corrupt Practices Act Of 1977
The FCPA (Foreign Corrupt Practices Act of 1977 was passed to ensure that U.S. firms do not engage in illegal bribing of foreign government officials
to assist in obtaining or retaining business. Specifically, this act prohibits any offer, promise to pay, payment or even authorization of payment to a
foreign official to influence it, secure any advantage or to assist in obtaining or retaining business.
The presenting team used the Walmart case as basis for the debate as it is relevant to the issue in question. In April 2012, the NYT reported that the
Walmart management in Mexico paid bribes of $24 million and $16 million in ""donation" to Mexico local government to help expand the business
there. In their debate that team chose to explore the possibility of expansion to China while debating the pros and cons of bribery/ "pay for play" in
China in order to succeed there.
The arguments that resonated with me the most were the ethical arguments as I found myself agreeing with both sides of the argument.
On one hand, it is obviously unethical to break the law and bribe but more importantly from a utilitarian perspective, this action will hurt the greater
good or "stakeholders" who are the whole society. Bribing corrupt authorities will only perpetuate the corruption in those countries and once a company
or individual has gone down that road it is very difficult to return. Bribery also encourages unfair competition that hurts the economy which eventually
affects the whole

Foreign Corrupt Practices Act Of 1977
During the years 2001 through 2005 According to the information and plea document, three Miami–Dade County telecommunications companies
executed a series of contracts with Telecommunications D'Haiti that allowed the companies' customers to place telephone calls to Haiti. Joel
Esquenazi, an executive of one of the companies, was charged with making illegal payments to officials at Telecommunications D'Haiti. In exchange,
the foreign officials presented business advantages on the Miami–Dade County companies, including issuing preferred telecommunication rates the
number of minutes for which payments was owed, and giving a variety of credit to owed sums. A shell company, owed by alleged co–conspirator Juan
Diaz, and co–defendant Marguerite... Show more content on Helpwriting.net ...
Since 1977, the anti–bribery provisions of the FCPA have applied to all U.S. persons and certain foreign issuers of securities. With the enactment of
certain amendments in 1998, the anti–bribery provisions of the FCPA now also apply to foreign firms and persons who cause, directly or through
agents, an act in furtherance of such a corrupt payment to take place within the territory of the United States. The FCPA also requires companies whose
securities are listed in the United States to meet its accounting provisions. See 15 U.S.C. В§ 78m. These accounting provisions, which were designed
to operate in tandem with the anti–bribery provisions of the FCPA, require corporations covered by the provisions to (a) make and keep books and
records that accurately and fairly reflect the transactions of the corporation and (b) devise and maintain an adequate system of internal accounting

U.s. Foreign Corrupt Practices Act
U.S. Foreign Corrupt Practices Act (FCPA)
The FCPA explicitly state that it is illegal for foreign business entities and individuals to engage in unlawful practices that include, making payments to
foreign officials in an effort to attaining or retaining business (DOJ.gov, 2016). This is the United States law and holds true for Chinese government
healthcare officials who worked under the reformed Healthcare system.
U.K. Bribery Act of 2010
The GSK case is attributed to the U.K. Bribery Act of 2010 (2016) because of the offenses as a result of bribing another person(s), and the offenses as
a result of being bribed (Legislation.gov.uk, 2016). This is the law from the United Kingdom as it relates to GSK being the representative U.K.
company.
Criminal Law of the People's Republic of China
The GSK case used Article 5, 91, 163, and 164 under the CLPRC, which specify China's provisional laws on bribery and corruption between drug
manufacturers and drug distributors and the level of fines and imprisonment time span one would receive if found guilty on any of the charges.
The Law of the People's Republic of China Against Unfair Competition
China's Unfair Competition Law describes the general provisions on the Acts of Unfair Competition, the legal responsibilities, and the Supervision and
Inspection provisions which is meant to protect a healthy expansion within China's socialist economy, hence, emboldening and safeguarding fair
competition while opposing unfair competition, and

Corrupt Government
Many Americans may think that the government is ideal because United States is "the land of the free" but the government is corrupt when looking at
it from a different view point. Especially with the election coming, some americans have been observate of the government and its choices. Firstly, to
gain a well rounded aspect of how corrupt the government one must know the history and become familiar with Thoreau. As essayist from the
mid–1800's who often criticized the government. He came about the time when some Americans realized how their newly independent country was
starting taking a downfall. With one of his famous essay "Civil Disobedience", he firstly explains how there the government should be less involved.
When the government gets

The Foreign Corrupt Practices Act Of 1977
The Foreign Corrupt Practices Act of 1977 (FCPA) evolved from investigations by the Office of the Special Prosecutor that provided evidence of
illegal acts perpetrated by U.S. firms in foreign lands. More than 400 U.S. companies admitted to making questionable payments to various foreign
governments and political parties as part of an amnesty program (U.S. Department of Justice http://www.usdoj.gov). Given the environment of the
1970s and the proliferation of white–collar crimes (e.g., insider trading, bribery, false financial statements, etc.), particularly the payments made to
foreign officials by corporations, Congress felt obligated to introduce legislation that led to the act. Congress 's objective was to restore confidence in
the manner U.S. companies' transacted business.
The FCPA is unique. Throughout history, governments have had laws making it illegal for governmental officials to take a bribe. One basic provision
of the FCPA is that it prohibits U.S. partnerships, companies, and organizations from not only giving payments but also offering or authorizing
payments to foreign officials or political parties with the objective of encouraging or assuring business relationships.
There are two types of bribery provisions. The first prohibits any bribes made directly by the U.S. company. The second prohibits any organization
from knowingly arranging for a bribe through an intermediary. Many thought that the FCPA would place U.S. companies at a disadvantage in the

Essay about Foreign Corrupt Practices Act
With the ever expanding global market, the ways Americans conduct business in other countries is one that can conflict with our laws and culture.
There are many cultures that don't eat certain foods or drinks due to religious practice, for example. Then there are laws that can conflict the way we
as Americans proceed with business in foreign countries. Many countries don't have laws that help curve gender discrimination as well which can
create problems for American women working overseas on behalf of an American company. As United States continues to make is mark on the global
economy, there are laws that help protect not only our companies, but also other companies through out the world as well.
The Foreign Corrupt Practices Act ... Show more content on Helpwriting.net ...
Also, all companies must implement an accounting system that provides "reasonable assurance" that all transactions entered are accounted and legal.
Any person making false statements or altering accounting books will be in violation of the law. This part of the law was writing to help with the
detecting of bribery. This is also something that was done in the past, where higher officials in a company would either force or pay an accountant to
make false accounts in the books.
The Foreign Corrupt Practices Act changes the way business is done in the global market because it levels the playing field for other competitors
who are vying to make their mark in other developing countries. It also affects the way other countries conduct business as well. Since the
introduction of this act, many countries have adopted similar laws as well. In 1997, the Organization for Economic Cooperation and Development
signed a treaty that made bribery of foreign officials a serious crime. This treaty improves the way business is conducted globally and also levels the
playing field for US businesspersons.
As of recently, even United Kingdom's Serious Fraud Office changes how they will prosecute officers who violates these laws, even enforcing the
companies to self–report such violations ( Corporate Counsel).
Any company or individual who

Corrupt Pope Corrupts
In the same way we see another corrupt pope having the same problem when pope John XXIII quoted: "Italians come to ruin most generally in three
ways, women, gambling, and farming. My family chose the slowest one." Just in saying that shows you how easily persuade and corruptible he was.
Woman weren't his only downfall being pope, but other corrupted sins such as: Simony. It started when Pope John wanted a third occupation after
advancing in his military position and then getting his doctorate being a lawyer. His interest in a religion based career was curious and when
beginning he was put to work under Pope Boniface who was the pope of the west when the catholic church split apart making two popes: one in rome
and one in Avignon. In the year... Show more content on Helpwriting.net ...
There were many practices that went on within the church such as: Simony, Selling of Indulgences, relics, pilgrimages, and the sexual immorality
of popes, as well as priests and nuns. The practices were not of God and more so God wrote against these in his word and thus making them very
sinful and wrong actions. Simony: the act of buying and selling spiritual privileges, was done by many popes including: Clement XIII, Clement
VII, Stephen VII, John X, John XI, John XII etc. The name simony originated from the man simon Magus, who once sought to buy the power of
the holy spirit from the apostles. He had hoped for that power to be able to lay hands on others to then receive the holy spirit. In the end he is told
to repent from what he persuade and ask for forgiveness from God. In addition to Simony, Peter told the church that if anyone tryed the act of Simony
they were to be told to repent at once. In contradiction, the church ignored this and the act of Simony grew. Then in the middle of the eleventh century
the act of Simony turned from spiritual things to more material things. When being involved in this act it is not required for money to be exchanged
from one person to the other for the act of Simony to be considered done. As well as if the action is for personal benefit, involuntarily Simony has been

Summary: The Foreign Corrupt Practices Act
Rethinking "The Foreign Corrupt Practices Act" "The Foreign Corrupt Practices Act" was first proposed in 1977 a time when there was rampant
corruption among foreign officials and companies in the United States. At that time, there was a need to clean the messes committed between
businesses and the governments gave that mega–scandal such as the Watergate Syndrome, which was exposed to the general public and was still fresh
in their minds. Additionally, the issue that has prompted the adoption of the Act, the more was the Wal
–Mart bribery claims in its Mexican subsidiary.
Regarding this case, more debate has been witnessed over the application of the Act. There is an evident tug of war or stand–off that lies between
federal agencies and business ... Show more content on Helpwriting.net ...
They also intend for the changes to improve the law in the manner which it is being applied. Among the business leaders, the main concern with this
particular Act is that is it aggressively enforced and also broad in its content. The two major parts that form the act are the prohibition of corrupt
activities to retain or acquire a business and submission of the financial reports with an internal system of controls. The provisions that bear the records
and books are frequently enforced by a share of the authorities subjecting the companies to frustrations whenever any violation is detected. Even though
over more than 30 years since the enactment of the law, there has been a sporadic application of the anti–bribery part, but only a few cases have been
settled with modest fines with many going unpunished. Moreover, some hurdles are also being experienced when enforcing the acts. For instance, in
most cases, bribery is often made but with intermediaries from foreign countries on behalf of the involved parties who again form no ties with the
United States. Hence, it is becoming hard to press charge against them or bring them to the U.S. for trials. The act presses more charges on
individuals as opposed to involved companies. It is also taking longer for the full realization of justice given that foreign bribery is difficult to detect
hence five years given the statute limitations is deemed not

The Foreign Corrupt Practices Act
America has always been a land of freedom, prosperity, and rules. Save the times of the Wild West the United States government has attempted to
exude a persona of ethicality. It seems that whenever a financial crisis/fraud/bribery scandal arises new laws are passed to help prevent future
problems. Such is the case with the Foreign Corrupt Practices Act – passed with the purpose of keeping companies that do business in the US ethical in
their business dealings. The main purpose of the act is to prevent companies from paying bribes to foreign officials, though there are other provisions
included. It is only fitting that Wal–Mart, the largest retail store in the United States (2013 Top Global Retailers) has had allegations of wrongdoing
related to the act. Wal–Mart was reported to have paid over $24 million in bribes to officials in Mexico. Why would Wal–Mart need to be bribing
Mexican officials when they are so large and powerful themselves? And how did the US government get involved? These questions are the purpose of
this paper.
In many foreign countries, there are barriers to entry. Some may be cultural, some may be political, and some may be both. Wal–Mart faced both as it
tried to dominate the retail market in Mexico. "Greasing the palms" of government officials was a long–standing tradition for companies to help speed
up (often significantly) the process of obtaining permits. Often countries such as Mexico have a stigma of their officials delaying services for

Power Corrupts
Power Corrupts There are multiple ways to be influential to mankind, but what are the different variations of power people can use and can they
be abused? Power of words, power of roles, power of actions, power of media, and power of authority are interconnected and all lead to the same
conclusion; "Absolute power corrupts absolutely." In other words, when people have too much power, they could use it as a gift or a weapon.
Words are the foundation of most of the powers used to be influential. The use of words can affect or impact the way a power is used; for example,
people can either use words to build you up or break you down. They can also be used to mislead people by "telling people the things they want to
hear instead of the things they need to hear" (Paragraph 4, The Danger of Silence). Words can be abused and can lead to serious issues for the
person speaking and the person those words were directed for. In the Ted talk "When Online Shaming Goes Too Far", we see how many people can
misinterpret others opinions and use their words to "dehumanize people" (Ted Talk) as a way to have some power over that person. Ones' words... Show
more content on Helpwriting.net ...
The power of authority is when one person or a group of people follow someone or something with the intent of obeying rules blindly and without
hesitation. An example of influential authority is in the Milgram Experiment. This lab was conducted with multiple people who were told to shock
someone on command when they were authorized to do so. The experiment showed results that people are willing to listen to a higher authority when
they were told. Low status and persuasive people "are like sheep following a shepherd." (Paragraph 7, Milgram Experiment) when there is an authority
figure present. Authority is a privilege that can be easily misused, and this power is something that can cause much impact on other people lives and

Impact Of The Foreign Corrupt Practices Act
Impacts of the Foreign Corrupt Practices Act
Some would say that in order to accomplish global corporate success, and growth, one must "work" the system to their advantage. In the 1970's there
was an increased awareness of illicit payments used to bribe foreign governments. Several headlines had shaped the U.S. government's concern; acting
as a catalyst for the development and establishment of the Foreign Corrupt Practices Act. This Act, even to this day, is recognized for its purpose of
prohibiting the practice of corrupt actions associated with the U.S. While widely recognized in the American business market, due to its impact
nationally as well as internationally, its "real" significance in U.S. commerce has been criticized. As those... Show more content on Helpwriting.net ...
Take for example, the Northrop Corporation paid foreign agents cash commissions, which were passed along to officials in Saudi Arabia, NATO, and
the Common Market countries (Vanasco). In fact, it was this scandal, among another 400 U.S. Securities and Exchange Commission (SEC)
investigations, which threatened U.S. foreign policy and paved way for the FPCA.
The US was the first country to actively regulate such legislation on foreign trade, international law, and code of ethics. The idea of the FPCA was to
eliminate these acts of corporate corruption. Corruption is caused by the act of abusing either a public or private office for personal gain
(CleanGovBiz). Furthermore, the effects of corruption in which is imposed on the economic, political and social development of society has facilitated
to the evolution of this Act. All around, it can be argued that corruption inflicts a threat on the sustainable development as well as economies alike
(CleanGovBiz). Essentially, this Act is an anti–bribery act which makes it unlawful and prohibits all U.S. personal and certain foreign issuers of
securities, foreign firms, and persons from making these corrupt payments within the U.S. or within its territories. The Foreign Corrupt Practices Act
highlights the national need for effective and adequate internal control systems to

Foreign Corrupt Practices Act :
Running Head: FOREIGN CORRUPT PRACTICES ACT1
FOREIGN CORRUPT PRACTICES ACT
BUSINESS LAW
Katherine Hall–Blair
Keiser University
FOREIGN CORRUPT PRACTICES ACT2
FOREIGN CORRUPT PRACTICES ACT
In the face of improper payments to officials abroad, the United States introduced the Foreign Corrupt Practices Act (FCPA) of 1977. This act was a
pioneer step for the government of the United States to combat illegal bribes by not only U.S. companies, but overseas companies as well. Other
countries have now taken note and apply their own laws (1). It began with the Watergate scandal and an investigation into then–President Nixon's
re–election campaign contributions. It was discovered that hundreds of U.S. corporations held large cash slush funds, which the Securities Exchange
Commission (SEC) determined were destined to be paid out as bribes to foreign officials as hundreds of millions had already been spent for that
same reason (1). Even though some European countries held that bribing officials was legal, in fact, an expense that could be reported and deducted
on corporate tax returns, the Congress of the United States passed, in 1977, the Foreign Corrupt Practices Act (FCPA)(1). This act was intended to
stop the bribing of foreign officials in order to obtain or retain business and reached all U.S. publicly traded companies, along with their directors,
officers, managers, employees, agents, and stockholders (2). Amendments

I.Introduction The Foreign Corrupt Practices Act ("FCPA") is the first globally enforcing statute making anti–corruption effort in the world. It has been
known for the broad enforcement coverage in terms of the worldwide governing jurisdiction and anti–gaming legislative approach leading to a long
time debates and discussions among practitioners and law commentators. This paper will focus on improving one of the undefined and broadly
interpreted terms – "instrumentality" in the anti–bribery provisions of FCPA which essentially serves as the catch–all legislative device to prevent
gaming, however, on the other hand, leaving problems in terms of ambiguity in interpretation. This paper will first provide an overview of the FCPA.
Second, this paper will explain the global enforcement impact for the multi–national businesses. Thirdly, this paper will discuss the importance and
problems of the term "instrumentality" applied in the anti–bribery provisions of FCPA. Then, this paper will try to identify the essence of
"instrumentality" and its related problems through studying relevant cases. Finally, this paper will offer solutions in order to solve the current
problems related to "instrumentality" interpretation and draw the conclusion. For the purpose of narrowing the focus of this paper, the discussion and
analysis will be mainly based on the anti–bribery provisions of FCPA regulating the issuers. II.Overview of FCPA A.Triggering Events of Enacting
FCPA Back to 1970s,

Power Is Corrupt
It is commonly said that "Power tends to corrupt, and absolute power corrupts absolutely." Power can come in different form such as economic
power or political power. When economic interests interact with policy made by the government this can very dangerous. As shown by the article by
U.S News & World Report on January 21st, 2015 with the headline "How Citizens United Has Changed Politics in 5 Years", when unlimited money is
allowed to flow into government we end with a corrupt system. This article discusses the effects of the Citizens United vs Federal Election Commission
Supreme Court decision. The decision that caused the start of the destruction of our democracy. Policies once made in the public self interest now only
benefit the corporations

The Foreign Corrupt Practices Act has been pursued by government agencies recently as the SEC, the FBI, and Department of Justice are cracking
down on international business corruption. Companies are working harder at expanding economically in the market by doing business with individuals
and other companies in foreign countries. Foreign countries are not always in compliance with US laws and regulations, causing US companies who
deal with them issues with compliance on the home front. Because of these ongoing issues congress decided to introduce the Foreign Corrupt Practices
Act and to prosecute foreign companies for corrupt activities within the United States. The Foreign Corrupt Practices Act is a federal law that was
amended in 1977, ... Show more content on Helpwriting.net ...
Evidence of bribery or erroneous accounting is enough proof for the government to file a case against an individual or company regardless of intent,
under the FCPA laws (Clayton, 2011). There are three types of improper violations for the anti–bribery provision and they include: the issuer, domestic
concern, the foreign national and businesses. The issuers are the ones that are registered in the US or are required to file Security and Exchange
Commission. Domestic concern is any person or business that has their place of business in the US or is under the US law. Lastly, the foreign
nationals and business in which deals with corrupt payments that are made in the United States, there are also the third parties and agents that are as
well included and have the same conditions apply to them as they do to the issuer, domestic concern, and the foreign national and businesses. The
second provision that is involved with the FCPA is the Accounting provision and that consist of contracts enforcing Securities and Exchange
Commission. The SEC enforces the Foreign Corrupt Practices Act (FCPA) by bringing the civil actions against the issuers and their officers, directors,
employees, and agents. FCPA has two accounting requirements that are recordkeeping and internal controls. The recordkeeping is there to ensure that
the books, records, and accounts are held at the standards of what the company should be at. This is designed to cover business

Baker Hughes: Foreign Corrupt Practices Act Study Questions
1. Describe the economic and social impact of bribes and other similar payments in emerging economics. In emerging economies, bribes and other
similar payments have a negative impact. Such corruption, although appearing to provide short term growth, will not turn into long term growth.
Corruption reduces the efficiencies of the operations of the market economy and a loss of direct foreign investment in countries where participation in
corruption is how business is done. Politicians and government officials worldwide receive bribes valued between $20 billion and $40 billion
annually. Companies that participate in bribing can face reputational damage and loss of investors. According to the World Bank, 0.5% of GDP is lost
due to ... Show more content on Helpwriting.net ...
Indirectly being involved is still a foreign corrupt practice.
6. Evaluate whether the changes in Exhibits 4 and 5 are likely to stop future foreign corrupt practices at Baker Hughes.
Exhibits 4 and 5 are likely to help stop future foreign corrupt practices. To have a set of rules and expectations such as in Exhibit 4, the due
diligence procedures, helps by leaving a paper trail. It is important to document the process of hiring a new agent, to make sure that you are
complying with the FCPA. Exhibit 5 is also helpful because it is a reference point for anyone who may not be familiar with corruption in
international business. To have a set of red flags that can be referenced, it can reduce employees just looking the other way and claiming they were
not aware of the potential for corruption during a business deal. While neither of these will stop every occurrence of corrupt practices, having them
in place will cause employees to think twice about engaging in such practices. If there is a standard for everyone to follow, it will also be easier to
catch those that still decide to intentionally engage in foreign corrupt practices because they will be unable to say they did not know what was
happening.
7. Discuss how the compliance and governance changes are likely to impact the future profits and shareholder value at Baker Hughes.
Compliance and governance changes will be likely to increase future profits and shareholder value at

Foreign Corrupt Practices Act Essay examples
Foreign Corrupt Practices Act In today's ever changing and competitive modern world of business, it is critical for the companies to have activities
internationally. In order to prohibit frauds and illegal activities, several acts and documents have been elaborated. One of the documents is Foreign
Corrupt Practices Act that has been enacted in the 1970's, as a result of SEC investigation of several U.S. companies that made illegal payments to
foreign governmental officials, politicians, and political parties (Barnes 73). The FCPA had a critical impact on the way U.S. firms do business.
Companies that did not comply with FCPA have been subject of criminal and civil enforcement actions that later resulted in huge fines and sentences for
... Show more content on Helpwriting.net ...
However, not all companies succeed to comply with all regulation, even though apparently it looks that all operations are lawful. For instance, United
States vs. Kay case, No. 05–20604, 2007 U.S. could lead to broader enforcement actions under the FCPA ("FCPA Gets Broader Reach"). The
company President (Douglas Murphy) and Vice President for Caribbean Operations (David Kay) at American Rice, Inc. took several steps in order
to reduce sales and taxes costs to rice exported to Haiti. Even though their actions included paying officials to resolve tax issues, underreporting
imports to reduce duties and taxes, paying officials to accept the underreporting, the district court granted a motion to dismiss the indictment, holding
that the scope of FCPA did not extend to paying foreign officials for the purpose of reducing taxes. In contrast, the court of appeal reversed in United
States vs. Kay, holding that bribes paid to foreign officials in consideration for unlawful evasion of sales taxes fall within FCPA. As a result, the jury
found Kay and Murphy guilty of violating the FCPA by paying foreign officials to retain their business in Haiti ("FCPA Gets Broader Reach").
Moreover, the court rejected defendants' argument that its interpretation of the FCPA extended criminal liability under the statute

The foreign Corrupt Practices Act prohibits paying or offering anything of value to foreign officials for the purpose of obtaining or keeping a
business. The FCPA was enacted by congress in 1977 due to various reports that were made by the Security and Exchange Commission (SEC). The
Security and Exchange Commission (SEC) reported different issues concerning bribery and illegal payments by United Sates companies. The FCPA
states that it's unlawful to make payments to foreign officials; having a corrupt intend that will make a foreign official to misuse his or her position in
directing a business. The FCPA intends to reinstitute public confidence in the integrity of the American business system.
When the FCPA was enacted in 1977, the... Show more content on Helpwriting.net ...
The anti–bribery provision of the FCPA applies to all U.S persons and to foreign firms that might make corrupt payments while being in the United
States.
The anti–bribery provision of the FCPA proclaims that it's unlawful for a U.S citizen to make a corrupt payment to a foreign official in the interest of
obtaining or retaining a business, or directing a business to, any person illegally. The FCPA also requires companies to make and keep books and
records that demonstrates all the transactions that the company has make. Only publicly traded U.S companies and foreign companies with its
securities registered under the Exchange Act are required to meet those accounting provisions. The FCPA also states that companies listed in the United
States must also maintain a system of internal accounting controls in its company.
The FCPA provisions are enforce by the Department of Justice and the Securities and Exchange Commissions. These two U.S government agencies
require all companies to have accurate records and books of all businesses, and have jurisdiction over the FCPA enforcement. The department of justice
handles criminal prosecutions. If a person violates the FCPA's anti–bribery provisions, they have to pay a fine of up to $2,000,000; directors,
stockholders, employees, and agents have to pay a fine of up to $100,000, and they can also be subjected to imprisonment for up to five years. Most of
the time, the actual fine can be up to twice the benefit

Foreign Corrupt Practices Act to Reduce Violations
Many companies are trying to expand economically in the market by doing business with an individual or another company in foreign countries.
These businesses are engaging in into using improper ways of payments that are leading to secret bribes to the foreign public officials. Foreign
countries are not always in compliance with the laws and they tend not to follow them. Having these problems with the US and all the millions of
dollars that have been passed they wanted to take a more affirmative approach and be able to correct the problem. That is when congress decided to
introduce the Foreign Corrupt Practices Act to prosecute foreign companies for corrupt payments within the United States. The Foreign Corrupt
Practices Act is a federal ... Show more content on Helpwriting.net ...
Each of these jurisdictions works together to keep aspects of FCPA from being violated. This law is not always prohibiting all payments to the foreign
officials. The FCPA has an exception for anti–bribery prohibitions and that is called " routine government action." This exception is also given the
names "facilitating" or " grease payment." The Foreign Corrupt Practices Act defines this "routine government action" as for a foreign official to
perform in obtaining permits, licenses, or other official documents that enable then to do business in that country, processing government papers such
as visa and work orders, protection services and conducting inspections, and anything that has similar nature (6). The Foreign Corrupt Practices Act
(FCPA) has two affirmative defenses and they consist of assertion that payment in question was lawful under the laws of the foreign country, and the
assertion that the payment was valued a bona fide expenditure (6). This affirmative defense is aimed to be for the issuer, domestic concern, or other
person. In this affirmative defense there must be some type of written law authorizing or supporting the payment. The penalties for violating the
Foreign Corrupt Practices Act are different from the provision that they fall under. For an individual and it is from the anti bribery

The And Corrupt Organization Act
Under the Racketeer Influenced and Corrupt Organization Act (RICO) in a criminal or civil law suit a pattern of racketeering activity must be
ascertained by proving at least two acts of racketeering activity have been performed within an interval of ten years. This law could not be upheld in
Sedina, SPRL v Inrex Co., 473 US 479 (1985) as two predicate acts could not be maintained (Twomey, 2013). Title IX of the Act is the Racketeer
Influenced and Corrupt Organizations Statute, the Organized Crime Control Act of 1970 became law. The purpose of the RICO statute is "the
elimination of the infiltration of organized crime and racketeering into legitimate organizations operating in interstate commerce." S.Rep. No. 617, 91st
Cong., 1st Sess. 76 (1969). Section 1961(10) of Title 18 stipulates that the Attorney General may designate any department or agency to conduct
investigations sanctioned by the RICO statute and such department or agency may use the investigative stipulations of the statute or the investigative
power of such department or agency otherwise conferred by law. Lacking a specific designation by the Attorney General, jurisdiction to conduct
investigations for infringements of 18 U.S.C. В§ 1962 rests with the agency having jurisdiction over the violations constituting the pattern of
racketeering activity listed in 18 U.S.C. В§ 1961 (USAM 9–110.812) If I could revise an internal union conduct law it would the Racketeer Influenced
and Corrupt Organization Act (RICO)

The Foreign Corrupt Policies Act (FPCA)
Corruption is something that can hit businesses very hard. Foreign corruption used to be something that would hurt businesses majorly. Due to this
The Foreign Corrupt Policies Act (FPCA) was signed into law on December 19, 1977 by President Jimmy Carter. The FPCA was enacted to make it
illegal for certain classes of people and entities to make payments to foreign government officials to help assists businesses (The United States
Department of Justice, 2015). Many U.S. companies were caught by Securities and Exchange Commission (SEC) bribing foreign officials to keep
businesses with them (McGraw & Rufe, 2014). It was something that was inexcusable and the U.S. government wanted to keep it from happening
again, so they signed in this Act. ... Show more content on Helpwriting.net ...
These provisions apply to everyone in the United States and issuers of security. More recently, they also apply to foreign firms and who want or plan
to have a corrupt payment take place upon U.S. grounds. For example, the Watergate scandal when President Nixon was using spies to help with his
win in the next election. This is an example of something that would violate the anti–bribery provisions because he was getting help from a foreign
source while using U.S. money to help himself and business. This scandal was a big reason as to why the Act was signed and put into

The Consequences Of The Foreign Corrupt Practices Act?
In 1977, Congress passed the Foreign Corrupt Practices Act (FCPA), which makes it unlawful for U.S. businesspersons or companies to pay, with
money or anything else of value, to foreign officials to secure beneficial contracts. The anti–bribery requirements of the FCPA have applied to all U.S.
persons since 1977. In 1998, certain amendments were revised and the anti–bribery requirements now apply to foreign firms and persons who cause an
act in continuance of bribery within the United States. The government was attempting to restricted illegal behavior, which is why they implemented the
Foreign Corrupt Practices Act after the SEC discovered that over 400 companies were sending corrupt payments to foreign government officials and ...
More than 30 percent of these businesses had lost overseas business due to the Act. Recent reports have revealed that exports have actually improved
in the areas that embrace corruption. Asia and Africa have started to develop business as well. For example, the United States have been expanding the
oil market in Nigeria under this act (Deming, 2011).
The largest impact internationally has been the result of the awareness of the FCPA. Since the U.S. government enacted the FCPA, it has raised
awareness in foreign countries, many of which have enforced their own anti–bribery laws and have also signed on to the Organization for Economic
Co–Operation and Development's (OECD) Anti–Bribery Convention to show their commitment to the regulations of the anti–bribery laws. The OECD
actually has no authority to enforce legislation and relies on the member countries to regulate the anti–bribery law. Foreign companies who are
associated with U.S. markets and foreign government officials are now aware of the consequences of violating the FCPA.
Those who violate the FCPA are subject to civil and criminal penalties. This includes but is not limited to fines and imprisonment. The Department of
Justice is responsible for enforcing the criminal penalties. Civil penalties; depending on the authority given under the FCPA, are enforced by both the
Department of Justice and the SEC. The DOJ prosecutes against anti–bribery violators by domestic concerns and under territorial jurisdiction.

Main Provisions Of The Foreign Corrupt Policy Act
This essay requires that I identify the main provisions of the the Foreign Corrupt Policy Act (FCPA) and then set forth the manner in which American
businesses can comply with this act so as to compete with foreign businesses. The FCPA was enacted in 1977 during the term of President Jimmy
Carter and is codified at 15 U.S.C. Sections 78–dd–1 et. seq..
During the 1970s the Security and Exchange Commission (SEC) commenced numerous investigations of American businesses and their questionable
payments to foreign governmental officials. As a result of these investigations, the Foreign Corrupt Policy Act was proposed. The SEC is the equivalent
to police departments, but for corporations.
The FCPA was enacted as legislation so as to prevent American corporations from bribing foreign officials. All corporations who are listed and traded
on the stock markets in the United States must comply with the reporting and accounting standards as required by the SEC.
The FCPA has three main components. First it requires corporations to keep detailed books, records and accounts which accurately record corporate
payments and transactions. Also, employees must create and manage a sufficient system of internal accounting controls.
The second provision regards the bribery of foreign officials. Bribery refers to any gifts, offers, payment, or promise of payment. Even making a
relatively small payment of $100 is a violation of the Act. It is also a violation to make a payment to a third party

The Foreign Corrupt Practices Act The Foreign Corrupt Practices Act (FCPA) of 1977 and the corresponding amendments set forth by the Omnibus
Trade and Competitiveness Act of 1988 and Amendments of 1998 have tremendous ramifications for U.S. multinational companies at large, their
subsidiaries, and foreign partners. While the main purpose of the original policy was to make it "unlawful to bribe foreign government officials to
obtain or retain business", the many statutes, their exceptions, and enforcement have gone through several iterations and most recently expanded
jurisdiction of the law to non–U.S. territories. In bribery cases, several conditions involving the perpetrator, intent of the act, and the recipient of the
bribe, ... Show more content on Helpwriting.net ...
of Justice, Lay–Person's Guide). In regard to corruption and bribery by U.S. companies and their agents conducting business overseas, the State
Department claims that the U.S. "has been a leader in the multinational effort to end bribery and corruption in international practices, a campaign...
supported by the United Nations, the Organization of American States, the Organization for Economic Co–operation and Development (OECD), and
other multilateral organizations and institutions" (U.S. Dept. of State). This statement clearly demonstrates that the need to address and deter
corruption and bribery in the international business environment is recognized as an important initiative, worth pursuing and requiring the cooperation
of many nations. Even though it took the U.S. nearly ten years to bring thirty–three countries on board to take part in a multinational anti–bribery
initiative, they did so by signing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (US
Dept. of Justice, Lay–Person's Guide). The sanctions that are in place to punish noncompliance with the FCPA, including criminal and civil penalties,
exist in the form of imprisonment and fines, and those sanctions are severe. Criminally, penal fines can reach up to $2 million or even exceed that
amount in exceptional circumstances. These substantial fines are imposed on the individual and payable only by the individual, thus

Wal Mart 's Domestic Corrupt Practices Act
The first Wal–Mart was opened on July 2, 1962 in Rogers Arkansas. Wal–Mart since then has now opened their stores in 27 different countries outside
the United States. Walmart has had problems in their business. One of the major problems Walmart has had is it's low wages to their employees.
Another problem is Wal–Mart has violated the Foreign Corrupt Practices Act which has caused them to pay millions of dollars. Last of all, in recent
studies it has shown that were a Walmart is build has a correlation with crimes. Walmart has had questionable ethical business practices in their stores.
Low wages and the insurance coverage at Walmart locations have been a problem. "A report from the National Employment Law Project states that
the low prices at Walmart provided to the customers have a hidden cost to the workers"(Jamieson). To have Walmart's low prices and still have a
profit they have to pay low wages to their employees. It's low wages have an effect on all the 2.2 million workers Wal–Mart has.This makes it harder
for their employees to buy food, housing and to pay other necessary bills. "Walmart has lowered the wages the employees get by hiring people that
don't work for the company to do their work "(Jamieson). "The employees at Walmart do hard work and most of their employees don't know about the
workers right abuse. They don't know where they can get compensation from the wrong things Walmart has been doing to them"(Jamieson). This is a
problem because if the employee

Foreign Corrupt Practices Act ( Fcpa )
Chapter One Introduction about Foreign Corrupt Practices Act 1.1 Background and aim of Foreign Corrupt Practices Act 1.11 Background and
amendment In 1972, in order to make Nixon win the election the Committee to Re–election of the President of American Republican Party installed
bug in Watergate building, the board office of Democratic Party aiming to steal the election policies of the party. The scandal brought great influence to
American society. With the investigation deepening, special prosecutor found that the companies of United States had illegal donations during the
competing re–election and later more than 400 companies of United States admitted that they made suspicious or illegal payments . They set up secret
bribery capital... Show more content on Helpwriting.net ...
Domestic concerns refer to any individual who is a citizen, national, or resident of the United States, or any corporation and other business entity
organized, such as limited corporation, partnership enterprise, organizations, stock company, trust company having its principal place of business in
the United States or registered under the laws of the United States or of any individual US State. Any foreigner or foreign enterprise refers to any
person without U.S nationality or any enterprise without registration in U.S. . Before 1998 any foreign enterprise or foreigner was not limited by
FCPA except foreign enterprise issuers. But the amendment of FCPA in 1998 greatly extended the jurisdiction of U.S government. If any independent
foreign enterprise or individual directly or through agent had bribery on foreign officials in U.S they would violate the regulations of FCPA. Except
that all the issuers above mentioned, domestic enterprise or employee in foreign enterprises, senior staff, directors, shareholders and agent were
restrained by the law. The ministry of justice was authorized to convict the employee of enterprise according to regulations of FCPA whether the
enterprise was guilty or not. 1.2.1.2 Elements of terms Although the translation editions of different languages had different classifications on elements
of composition, the terms were composed of five

Facilitating Payments And Its Complications During Foreign...
Facilitating Payments and its Complications in Foreign Corrupt Practice Act
In all professional practices, engineers often have to face various ethical dilemmas. Under the OSH (Occupational Safety and Health Administration)
Act, employers are required to provide a safe and healthy workplace while complying with all applicable OSHA standards. However, such standards
and regulations are not always abided by the industries, especially in areas where corruption is common. Engineers are often faced with difficult moral
decisions. There are conflicts between engineers' ethical obligations, "Engineers shall avoid deceptive acts, conduct themselves honorably, responsibly,
ethically, and lawfully so as to enhance the honor, reputation, and usefulness of the profession," and their obligation to remain as "faithful agents or
trustees" for their employers and clients. In this paper I will discuss engineers' obligations to their company, the ethical aspect of bribery, and
problematic cases involving "facilitating payments".
Firstly, I want to discuss engineers' ethical obligations as an employee. Engineers are hired and compensated for their work as employees. Thus, they
have moral obligations to remain loyal and act as faithful trustees for their employers. Those obligations include engineers' duty to act with honesty and
integrity to the highest standards. For example, engineers are ethically required to work with reasonable care and skill at all time. They are compelled
to inform

'Corrupt In The Well'
Have you ever wondered why power goes corrupt or why it hasn't been the same power can go corrupt in so many ways? Either not responsible or
they can't keep task power is delicate in hands. Especially if they don't know what they're doing or they are not a reasonable person. Power is
corrupted in the wrong hand if it's in the right hands then nothing would go wrong. Power can be corrupted because of the economic reasons or just
power is in the wrong hand either a child or a teen. And adult should have the power of most things. Not kids because either they play around to
much or power is taken advantage of. And there is nothing to do unless there is a reasonable person has the power. Power is a big responsibility and it
takes the right person ... Show more content on Helpwriting.net ...
I would never want kids to have power above me because if it was me in the well I would want out just like the man. All he wanted was out of the
well and the kids kept playing around and lying to him. Power is important but it has to deal with the person that has the power and if someone has
power and the power is being corrupted well then that how u know when the power ain't in good hands. Like when the kids kept lying to the man or
the guards were being mean and cruel to the prisoners treating them unfairly. The power has to be in the right hands but "the man in the well " and
"the Stanford prison experiment the power was in the wrong hands so the power corrupted and there are many problems like dishonesty, trust, lying,
and if the person who has the power. As in the well, the kids play around and they never help and as in the Stanford prison experiment, the guards
took advantage of the power they are given. Power is delicate and it takes the right person to handle the power without it corrupting and it takes
honesty, respect, truth, and trust and no tricks or jokes especially in a serious

Corrupt Influence
For my weekly journal, I decided to talk about Racketeer Influenced and Corrupt Organizations Act. This act was established in 1970 by the congress to
prevent organized crime in the United States. One of the cases that I found online talks about two companies Allstate Insurance Company and
Providence chiropractic office. Providence Chiropractic violated the federal Racketeer Influenced and Corrupt Organizations (RICO) Act so Allstate
Insurance Company decided to sue them. Allstate Company accused them for misrepresenting medical records to lift insurance claims. The owner
submitted false bills looking for installment for treatment that was never provided. Allstate claims that the three women that were involved in this crime
intentionally and

The impact the Foreign Corrupt Practices Act had on society was pleasant since it restored buyer confidence in the United States and restored the
integrity of the United States market by implementing honesty in transactions. Yet it imposed too many disadvantages for the economy and
corporations. The Foreign Corrupt Practices Act focuses on large fraudulent payments made by a business, therefore anyone involved in the financial,
accounting, and executive department are impacted the most. Other major stakeholders affected include the board of directors, shareholders,
employees, government officials involved, and foreign officials or foreign companies involved. Everyone is affected because the codes of conduct, and
the companies' values needed ... Show more content on Helpwriting.net ...
The government just wants business overseas to be conducted the ethical way, which is admirable. Due to the fact that this law is regulatory and
pervasive, it does improve the integrity of businesses in the United States, and the overall truthfulness of the market. Of course, it is not as welcomed
by the business world as much as the government would like, but it makes companies righteous. Virtuous companies after all make the most money in
the long run due to loyal customers because of their respectable ways. In a sense the Foreign Corrupt Practices Act improved the business world and
society by requiring companies to assert more corporate governance, and by "strengthening the system of corporate accountability while thereby
reducing the number of questionable payments and practices" ("Impact of Foreign Corrupt Practices Act on U.S. Business", 1981, p.17). Not to
mention, Aristotle argues that justice is a matter of "giving each person what they deserve" (Sandel, 2009, p.187). If companies are in violation of
corrupt actions then they should be held accountable because that is part of corporate responsibility. Therefore, the impact the law has on guilty
businesses is expected, but the overall impact it had on the entire U.S market including those who were innocent of such actions is

Foreign Corrupt Practices Act ( Fcpa ) And Foreign Anti...
A Current Guide to Understanding the Foreign Corrupt Practices Act (FCPA) and Foreign Anti
–Corruption Legislation regarding the Canadian, British,
and Chinese Markets Published by: Cougar International Consulting Group Contributors: Deena Ghazanfarpour, Stephanie Sundsten, Xin Tang, and
Maki Uemura Purpose and Scope of this Handbook This handbook is intended to serve as a source of information to advise the client on how to
avoid corruption and abide by U.S. Federal Law in regards to the engagement of domestic and foreign trade. This informational guide supersedes all
prior policies or procedures as to the subjects addressed in this handbook. All efforts have been made to ensure the client that information contained...
The following sections will go into detail to inform the client about recent legislation and case laws regarding the FCPA. This information should be
used as a guide in how to conduct business legally in the United States. Recent trends Regarding the FCPA The following information contains material
gathered from the past couple of years that show patterns between firms and the FCPA. Higher Corporate Fines 2014 generated the second highest
corporate penalty total in history despite the fact that the total number of enforcement actions has remained roughly the same as 2013 (Shearman and
Sterling). This shows that the average corporate penalties continue to increase, reaching their highest level ever with $156.6 million in 2014 (Shearman
and Sterling). This marks a distinct shift in enforcement suggesting that agencies are moving their focus towards closing the most significant cases that
can yield the highest fines rather than lower value cases. The most recent case demonstrating the higher corporate fines is the settlement of French
power and transportation company Alstom whose settlement in late 2014 ordered them to pay $772 million in fines (Department of Justice). This fine
is well above the previous largest settlement amount of $450 million. This can be seen as a threat from federal agencies warning companies that this is
not a game and if a firm

Wal-Mart: The Foreign Corrupt Practices Act
This case study is based on several ethical dilemmas involving Walmart. Walmart has a social responsibility to operate in an honest and ethical manner.
It is important that they use the correct economical model to achieve the goals the company has in place. Large companies like Walmart need to ensure
they are using the utilitarianism approach. Although the company has investigated some of the claims made against them, they did it for the wrong
reason in a few circumstances. Walmart investigated a bribery claim because the public found out that they swept it under the rug. There are still
investigations involving employees being put in part time positions to avoid paying health care, not being paid for overtime, and discrimination.
1. The facts
A.Walmart was accused of paying 24 million dollars in bribes to promote their expansion in Mexico.
B.The Walmart executives were made aware of the situation but chose to drop the investigation.... Show more content on Helpwriting.net ...
Walmart does not appear to have a good integrative model. While they are not hurting the air or water, they are hurting other businesses. They are
doing this by causing small businesses to close and trying to offer bribes so they can expand.
6. Guidance
A. They should speak with other companies who operate the same type of businesses, such as Target.
B. They need to contact a representative that is familiar with "The Foreign Corrupt Practices Act. Representatives should review any evidence collected
and give them recommendations to put a program in place to ensure they are not attempting to bribe people.
C. A representative from The U.S. Equal Employment Opportunity Commission needs to come and evaluate their business practices. They need to
ensure that they are not discriminating against any groups of people.
7. Assessment
A. These ideas can and more than likely will have to be modified. Walmart's corporate team members and the management from different stores need to
ensure they are open to

The Foreign Corrupt Practices Act (FCPA)
The Foreign Corrupt Practices Act (FCPA) was created in the U.S. in 1977 in response to federal investigations revealing American companies profiting
in millions in bribes with foreign government officials. As a result, the FCPA directly prohibits American based companies from offering and making
payments to any foreign official with the intent of enticing the recipient to misuse his power, and indirectly through its accounting requirements.
Since its enactment, the FCPA has provided a competitive disadvantage to U.S. companies when conducting operations in countries wherebribery is the
norm. The law does not level the playing field, rather providing the opposite effect, since competitors abroad are not required to operate under the same
rules ... Show more content on Helpwriting.net ...
Since timeliness and efficiency are essential, one must encourage it by providing gratuities. This money supplements the income of the recipient and
encourages them to do their jobs. Nations that are likely to encounter high bribery activity are usually those that are culturally ingrained with nepotism,
poverty, low government wages and a weakened economic structure. Laws like the FCPA cannot change bribery activity since this culture stems from
the real life conditions of the country. The FCPA cannot seek to solve bribery issues among the U.S. and foreign countries, when the root of the
problem still exists. The FCPA is purely legislation and doesn't actually implement change.
When assessing the risks of violating the FCPA, U.S. companies lack completive advantages, while other competitors get ahead by pay off as many
bribes as necessary. This increases inequalities between economies globally, which seems like an adverse, long–term effect of the FCPA. Inequalities
created by corrupt and less corrupt states will only split the world into two and doesn't tackle the real issue at

Foreign Corrupt Practices
The Foreign Corrupt Practices Act There are many organizations in the United States who lead business with firms everywhere throughout the world.
This is the way the world is developing with different markets to be beneficial and manage their organizations above water. Be that as it may, not
every one of the organizations have legitimate business morals which can be an issue while working together between the US and outside
organizations who don't have any points of confinement to their business laws. "For example, in many foreign countries side payments to government
officials for an exchange of a favorable business contract are not unusual." (Hollowell &Miller, 2011, pg. 22). Because of the broad measures of these
sorts of action, congress... Show more content on Helpwriting.net ...
(USDOJ, Fpca, Web. 2011). As expressed on the US Bureau of Equity site, "the US Congress got to be distinctly worried that American organizations
were working off guard contrasted with remote organizations who routinely paid fixes and, in a few nations, were allowed to deduct the cost of such
rewards as operational expense on their charges". ("Lay Person's Guide" Foreign Corrupt Practice. Antibribery Provisions. Justice.gov.

Essay On Foreign Corrupt Practices Act
Vu Le Vu
LGLS 3562
Michael Valenza
December 7th, 2017
Foreign Corrupt Practices Act (FCPA)
FCPA Background
The U.S. Foreign Corrupt Practices Act (the "FCPA" or the "Act") is one of the primary statutes in the U.S. for fighting against corruption around the
world. After the Watergate scandals and revelation of widespread corruption andbribery all over the globe by U.S companies, the FCPA was established
in 1977 by Congress [1].
Before passing the FCPA, the government found that more than 400 companies had paid millions of dollars in briberies to foreign government
officials to secure businesses overseas. It has been reported that firms have secretly used the money to illegally contribute to the United States and make
illegal payments to ... Show more content on Helpwriting.net ...
The FCPA addresses three categories of persons and entities; issuers, domestic concerns and other people (including foreign persons or their
agents) that violate the law while on the territory of the U.S. [1]. "Issuer" means any company whose class of securities are listed on a national
securities exchange in the United States. Alternatively, any company whose class of securities are quoted on the free market in the United States
and requires submission of periodic reports to the SEC is an issuer. Therefore, the company does not need to be a US company to be a publishing
company. Foreign companies with US custody receipts listed on a US trading floor are also issuers. As of December 31, 2011, 965 foreign
companies were registered with the SEC [2]. Speaking of domestic concerns, they could be any individual who is a citizen, national or resident of the
United States. They could also be any company, association, partnership, joint stock company, business trust, or a proprietary organization formed
under the laws of the United States or its states, territories, properties or communities, or whose headquarter of business is in the United States [2].
Moreover, the FCPA applies to the officers, directors, employees, agents, and shareholders of the issuers and domestic concerns.
The Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) share the power to

Foreign Corrupt Practices Act :
Shivangi Patel
LAW 110– MO1
Vincent Petraro
Foreign Corrupt Practices Act was introduced in 1977.It was made effective from December
19, 1977. Foreign Corrupt Practices Act applies to all citizen of United State and certain foreign issuers of security and foreign companies. The Minor
changes were made in the year 1988 and in 1998.Foreign Corrupt Practices Act has two main Provision (a)Accounting Transparency under Securities
Exchange Commission, 1934. (b)Bribery of Foreign Officials.
Department of Justice (DOJ)and Securities Exchange Commission(SEC) are responsible for enforcement of Foreign Corrupt Practices Act. Powerful
influence of both Department of
Justice and Securities Exchange Commission ... Show more content on Helpwriting.net ...
However, due to enforcement of Foreign Corrupt Practices Act, the US exports decreased which also resulted in decrease of Foreign Direct Investment
because
Foreign Corrupt Practices Act discourages firms from investing in foreign markets. Companies engaging in mergers and acquisition in emerging
markets face uniquely increased level of regulatory and corruption risk.
This is mainly due to three reasons:
1)In many foreign countries, informal payments substitute for formal economic institutions familiar to enforcement officials in developed countries,
implying that on formal payments reduce US companies access to foreign economic institutions.
2)Foreign Corrupt Practices Act enforcement imposes direct cost on international investment through fines. Profit disgorgement, and reputational
degradation that occurs when companies are targeted by Department of Justice and Securities Exchange Commission. Also, agencies possess enormous
scope while deciding which payments are to be classified as bribes.
3)The lack of clarity of informal payments which triggers increase in legal defense, and due diligence spending by US multinational it raises the cost
of investing in the foreign markets. To compete in global markets US firms were trying to subvert anti–bribery legislation. They can substitute financial
contribution for hiring additional labors. Thus, they would reduce capital– to–labor–ratio. American firms

Foreign Corrupt Practice Act
The US Foreign Corrupt Practice Act (FCPA) of 1977 is the anti–corruption law. It was the first law that introduce corporate liability which is
responsible for the third parties and extraterritoriality for corruption offences, which cause companies and persons can be held criminally and civilly
responsible for corruption offences committed aboard. Since 1977, the anti–bribery provisions of the FCPA have applied to all U.S. persons and certain
foreign issuers of securities. With the enactment of certain amendments in 1998, the anti–bribery provisions of the FCPA now also apply to foreign
firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment to take place within the territory of the United
... Show more content on Helpwriting.net ...
To have a record in criminal penalty, you may be imposed for violations of the FCPA's anti
–bribery provisons: corporations and other business
companies are written up to a fine up to $2,000,000; $100,000 and imprisonment for up to five years. The actual fine could be up to twice the
benefir that the defendant may seek to obtain by making the corrupt payment. Beware that the fines imposed on individuals may not be paid by their
employer. Majority of the businesses can face up to $10 thousand in civil sanctions for violating the ACT. While officers, directors, employees and
agents of the companies can may face same charge for violating the ACT, companies can be lucky by not paying for any fines that are imposed on

FCPA Case Study Guide

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