KEY TAKEAWAYS

  • The FCPA prohibits U.S. companies from bribing foreign officials to gain business advantages.
  • The law applies to both publicly traded and privately held U.S. companies worldwide.
  • SEC and DOJ enforce the FCPA, with potential penalties including heavy fines and imprisonment.
  • The FCPA's accounting provisions require companies to maintain transparent financial records.
  • Notable companies, including Ericsson and Microsoft, have faced significant penalties for FCPA violations.

What Is the Foreign Corrupt Practices Act (FCPA)?

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

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