The Foreign Corrupt Practices Act Of 1977 - 1104 Words

The Foreign Corrupt Practices Act of 1977 (FCPA) evolved from investigations by the Office of the Special Prosecutor that provided evidence of illegal acts perpetrated by U.S. firms in foreign lands. More than 400 U.S. companies admitted to making questionable payments to various foreign governments and political parties as part of an amnesty program (U.S. Department of Justice http://www.usdoj.gov). Given the environment of the 1970s and the proliferation of white-collar crimes (e.g., insider trading, bribery, false financial statements, etc.), particularly the payments made to foreign officials by corporations, Congress felt obligated to introduce legislation that led to the act. Congress s objective was to restore confidence in the manner U.S. companies’ transacted business. The FCPA is unique. Throughout history, governments have had laws making it illegal for governmental officials to take a bribe. One basic provision of the FCPA is that it prohibits U.S. partnerships, companies, and organizations from not only giving payments but also offering or authorizing payments to foreign officials or political parties with the objective of encouraging or assuring business relationships. There are two types of bribery provisions. The first prohibits any bribes made directly by the U.S. company. The second prohibits any organization from knowingly arranging for a bribe through an intermediary. Many thought that the FCPA would place U.S. companies at a disadvantage in theShow MoreRelatedForeign Corrupt Practices Act Of 19771886 Words   |  8 Pagesexchange, the foreign officials presented business advantages on the Miami-Dade County companies, including issuing preferred telecommunication rates the number of minutes for which payments was owed, and giving a variety of credit to owed sums. A shell company, owed by alleged co-conspirator Juan Diaz, and co-defendant Marguerite Grandison company were allegedly used to make the payments. There are twelve counts of money laundering, seven counts of violation of the Foreign Corrupt Practices Act, one forRead MoreU.s. Foreign Corrupt Practices Act Of 1977764 Words   |  4 PagesThe FCPA (Foreign Corrupt Practices Act of 19 77 was passed to ensure that U.S. firms do not engage in illegal bribing of foreign government officials to assist in obtaining or retaining business. Specifically, this act prohibits any offer, promise to pay, payment or even authorization of payment to a foreign official to influence it, secure any advantage or to assist in obtaining or retaining business. The presenting team used the Walmart case as basis for the debate as it is relevant to the issueRead MoreGifts Bribes1260 Words   |  6 Pagesextra factors are considered. This is the case where cultural practices pertaining to gifts, bribes, and any other kind of payments have become part of accepted business norms. In the United States, through the Foreign Corrupt Practices Act (FCPA) of 1977, â€Å"companies cannot make payments of this nature while knowing or having reason to know that any portion of the funds will be transferred to a forbidden recipient to be used for corrupt purposes† (Fadiman, 1986). This paper aims to discuss, brieflyRead MoreForeign Corrupt Practices Act :836 Words   |  4 PagesVincent Petraro Foreign Corrupt Practices Act Foreign Corrupt Practices Act was introduced in 1977.It was made effective from December 19, 1977. Foreign Corrupt Practices Act applies to all citizen of United State and certain foreign issuers of security and foreign companies. The Minor changes were made in the year 1988 and in 1998.Foreign Corrupt Practices Act has two main Provision (a)Accounting Transparency under Securities Exchange Commission, 1934. (b)Bribery of Foreign Officials. DepartmentRead MoreBusiness Law Reflection693 Words   |  3 Pageswith the Foreign Corrupt Practice Act of 1977 (FCPA). What is Foreign Corrupt Practice Act? For those who don’t know might ask, well, the Foreign Corrupt Practice Act of 1977 which was introduced in the U.S Senate as S.303 by Mr. William Proxmire (D.W) and signed into law by president Jimmy Carter on December 19, 1977 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 andRead MoreStopping Fraud and Illegal Activities in Organizations that Conduct Their Business Internationally1415 Words   |  6 Pageshappening there are a few acts and documents that have been enabled. The Foreign Corrupt Practices Act (FCPA) is a law that congress primarily passed in 1977. This act prohibits businesspersons from bribing foreign officials to secure advantageous contracts. The United States also regulates payments to foreign officials. Giving cash or kind benefits to foreign government officials to obtain business contr acts and other favors, this is actually often considered a normal practice to do. To reduce suchRead MoreForeign Corrupt Practices Act :1275 Words   |  6 PagesRunning Head: FOREIGN CORRUPT PRACTICES ACT 1 FOREIGN CORRUPT PRACTICES ACT BUSINESS LAW Katherine Hall-Blair Keiser University FOREIGN CORRUPT PRACTICES ACT 2 FOREIGN CORRUPT PRACTICES ACT In the face of improper payments to officials abroad, the United States introduced the Foreign Corrupt Practices Act (FCPA) of 1977. This act was a pioneer step for the government of the United States to combat illegal bribes by not only U.S. companies, but overseas companiesRead MoreEssay On Foreign Corrupt Practices Act1323 Words   |  6 PagesThe Foreign Corrupt Practices Act (FCPA) was enacted in 1977 to control widespread bribery of foreign officials. Foreign officials are being bribed by United States companies to win business with them. The Foreign Corrupt Practices Act is enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The Department of Justice has a special unit call FCPPA that is within the Criminal Division’s Fraud Section. They have criminal enforcement authority of the businessRead MoreWeek 5 Reflection Paper655 Words   |  3 Pages2013 Erikka Hise The Foreign Corrupt Practices Act This assignment instructed us to read four articles concerning Legal Issues in International and Domestic Business Foreign Corrupt Practices Act. Within this assignment it discussed the crisis in corporation’s unethical practices. The Foreign Corrupt Practices Act of 1977 sparked the argument that United States companies are disadvantaged in international markets. The act has been controversial since its enactment, withRead MoreForeign Corrupt Practices Act1207 Words   |  5 PagesFCPA PAPER The Foreign Corrupt Practices Act of 1977 (FCPA) evolved from investigations by the Office of the Special Prosecutor that provided evidence of illegal acts perpetrated by U.S. firms in foreign lands. More than 400 U.S. companies admitted to making questionable payments to various foreign governments and political parties as part of an amnesty program (U.S. Department of Justice http://www.usdoj.gov). Given the environment of the 1970s and the proliferation of white-collar crimes (e.g