What is the Foreign Corrupt Practices Act (FCPA) and how does it affect my business?
The FCPA was enacted in 1977 and amended in 1988 by the United States Congress. This Act makes it a crime for U. S. individuals and companies, including their subsidiaries, branches or affiliates, to knowingly offer payment or promises of payment of money or anything else of value to foreign government officials to secure business. It does not apply to bribes offered to non-government officials, although there may be local laws that could result in prosecution. In recent years other countries have adopted their own regulations, but the rules and applications can vary from country to country. The rules set forth in the FCPA only apply to U.S. firms. It is important that U.S. exporters dealing with foreign government officials fully understand the requirements of this Act because violations could result in a fine of up to U.S. $2,000,000.00 for corporations, U.S. $100,000.00 for individuals, imprisonment of up to 5 years, or a combination of a fine and imprisonment. A “layman’s guide” to
