Foreign Corrupt Practices Act (FCPA),

Definition of Foreign Corrupt Practices Act (FCPA):

1. Legislation signed into law in 1977 that prohibits U.S. firms from engaging in bribery and other unlawful and fraudulent practices when conducting business in foreign countries. The legislation assigned responsibility for FCPA enforcement to the U.S. Department of Justice with supporting roles played by the Securities & Exchange Commission (SEC) and the Office of General Counsel of the Department of Commerce.

2. The Foreign Corrupt Practices Act (FCPA, the Act) is a United States law that prohibits U.S. firms and individuals from paying bribes to foreign officials to further business deals. The FCPA contains two main articles: 1) the anti-bribery provisions, and 2) the books, records, and internal control provisions, which speaks to accounting practices. The FCPA applies to prohibited conduct anywhere in the world and extends to U.S. publicly traded companies.

3. The Foreign Corrupt Practices Act targets corruption and bribery internationally. Paying foreign officials for expediting legal processes or obtaining contracts was a common business practice around the world well into the 1970s. In some countries, in fact, corporations routinely wrote-off bribes as normal business expenses when filing their tax returns. Being common, however, does not make this behavior desirable or ethical.

How to use Foreign Corrupt Practices Act (FCPA) in a sentence?

1. Passage of the FCPA, in 1977, helped to level the playing field for American businesses in overseas markets.
2. Both the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are responsible for enforcing the FCPA.
3. 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.