What is the primary purpose of the Foreign Corrupt Practices Act?

The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business.

What is the purpose of the Foreign Corrupt Practices Act quizlet?

The Foreign Corrupt Practices Act (FCPA) is a United States law passed in 1977 that prohibits U.S. firms and individuals from paying bribes to foreign officials in furtherance of a business deal. The FCPA places no minimum amount for a punishment of a bribery payment. You just studied 9 terms!

Who does 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.

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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.

Why did Congress create the Foreign Corrupt Practices Act?

In response to these high-profile revelations, Congress enacted the FCPA to bring a halt to the bribery of foreign officials and to restore public confidence in the integrity of the American business system. The Act was signed into law by President Jimmy Carter on December 19, 1977.

What is the main provision of the FCPA quizlet?

The Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. § 78dd-1, et seq.) is a United States federal law known primarily for two of its main provisions, one that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another concerning bribery of foreign officials.

Which is true for 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.

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.

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.

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What are some examples of Foreign Corrupt Practices Act violations?

Examples of FCPA accounting violations include failing to implement internal controls, to keep accurate books and records, to conduct appropriate audits of payments, and to implement sufficient anti-bribery compliance policies.

What is the purpose of DOJ opinion?

The DOJ Opinion process allows parties to submit information related to “specified, prospective – not hypothetical – conduct” and receive an opinion from the DOJ regarding whether the proposed conduct would be prosecuted under the FCPA.

Which of the following provisions of the Foreign Corrupt Practices Act is known as the anti-bribery provision?

The anti-bribery provisions of the FCPA make it unlawful for a U.S. person to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person. The FCPA also requires issuers of securities to meet its accounting standards.

What are the main features of the 1977 Foreign Corrupt Practices Act FCPA?

The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business.

What is meant by corrupt practices?

corrupt practice means behavior on the part of officials in the public or private sectors by which they improperly and unlawfully enrich themselves, others, or induce others to do so, by misusing the position in which they are placed, and it includes the offering, giving, receiving, or soliciting of anything of value …