Foreign Corrupt Practices Act2.docx - Running head Foreign Corrupt Practices Act 1 The Foreign Corrupt Practices Act Carla Samuel Keiser University

Foreign Corrupt Practices Act2.docx - Running head Foreign...

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Running head: Foreign Corrupt Practices Act 1 The Foreign Corrupt Practices Act Carla Samuel Keiser University E-Campus
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Foreign Corrupt Practices Act 2 Abstract This paper explores the Foreign Corrupt Practices Act (FCPA) and how it goes against corrupt corporations and briberies. Due to United States corporation illegally receiving money from foreign officials the FCPA was created and signed into the law. This paper explains how the FCPA was created, who it is enforced by, the penalties and violations, and others.
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Foreign Corrupt Practices Act 3 Foreign Corrupt Practices Act During the mid-70, and in the wake of the Watergate Scandal, rumors began to circulate about US corporations paying officials in foreign countries for favors. The United States Congress demanded action when it was brought to light that the Securities and Exchange Commission (SEC) solicited and received voluntary disclosure from more than 400 hundred American companies that they had paid millions of dollars in bribes to foreign public officials [Don]. To minimize similar situations from reoccurring and introduce accountability in the corporate sector, the United States Congress and President Jimmy Carter passed and signed into law the Foreign Corrupt Practices Act on December 19, 1977. It was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining and retaining businesses[For17]. President Jimmy Carter believed that corrupt practices between corporations and foreign official undermine the integrity and stability of the government and it harms relations with other countries. He described bribery as being “ethically repugnant” and “competitively unnecessary” [Pet77]. With the passing of the Foreign Corrupt Practices Act it makes corrupt payment to foreign official illegal under United States Law. The law requires publicly held corporations and public officials to keep accurate books and records and establish accounting controls to prevent the use of “off the book” devices and it also requires more extensive disclosure of ownership of stocks registered with the Securities and Exchange Commission [Pet77]. The Foreign Corrupt Practices Act, or FCPA, has two main mechanisms: the anti-bribery provision and the accounting provision. “ Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce
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Foreign Corrupt Practices Act 4 corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion
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