{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

DSST Business Ethics Study Guide sm 2

2 facilitation payments are one of the few exceptions

Info iconThis preview shows pages 27–29. Sign up to view the full content.

View Full Document Right Arrow Icon
[2] Facilitation payments are one of the few exceptions from anti-bribery prohibitions of the law. 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. Provisions and scope The anti-bribery provisions of the FCPA prohibit: Issuers, domestic concerns, and any person from making use of interstate commerce corruptly, in furtherance of an offer or payment of anything of value to a foreign official, foreign political party, or candidate for political office, for the purpose of influencing any act of that foreign official in violation of the duty of that official, or to secure any improper advantage in order to obtain or retain business. [ edit ] Persons subject to the FCPA Issuers – Includes any U.S. or foreign corporation that has a class of securities registered, or that is required
Background image of page 27

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
to file reports under the Securities and Exchange Act of 1934 Domestic concerns – Refers to any individual who is a citizen, national, or resident of the United States and any corporation and other business entity organized under the laws of the United States or having its principal place of business in the United States Any person – covers both enterprises and individuals [ edit ] History As a result of U.S. Securities and Exchange Commission investigations in the mid-1970s, over 400 U.S. companies admitted making questionable or illegal payments in excess of $300 million to foreign government officials, politicians, and political parties. The abuses ran the gamut from bribery of high foreign officials to secure some type of favorable action by a foreign government to so-called facilitating payments that were made to ensure that government functionaries discharged certain ministerial or clerical duties. One major example was the Lockheed bribery scandals, in which officials of aerospace company Lockheed paid foreign officials to favor their company's products. [1] 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. [2] The Act was signed into law by President Jimmy Carter on December 19, 1977, and amended in 1998 by the International Anti-Bribery Act of 1998 which was designed to implement the anti-bribery conventions of the Organisation for Economic Co-operation and Development. The anti-bribery provisions of the FCPA make it unlawful for a U.S. person, and certain foreign issuers of securities, to make a payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person. Since 1998, they also apply to foreign firms and persons who take any act in furtherance of such a corrupt payment while in the United States. The meaning of foreign official is
Background image of page 28
Image of page 29
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page27 / 35

2 Facilitation payments are one of the few exceptions from...

This preview shows document pages 27 - 29. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online