Michael V. Seitzinger
Legislative Attorney
The Foreign Corrupt Practices Act of 1977 (FCPA) was intended to prevent corporate bribery of foreign officials. The act has three major provisions; they concern the accounting standards of corporations, the requirements of Securities and Exchange Commission (SEC) registered issuers, and anti-bribery. The act was amended in 1988 and in 1998, but the three major areas of coverage remain.
Criticisms of the act’s operation and scope began almost immediately after its passage and have continued. These kinds of criticisms range from its being too strict and therefore harmful to the competitive position of American businesses to its being unethical by allowing certain kinds of payments to foreign officials in the course of doing business. Especially prominent recently have been suggestions that businesses convicted of violating the Foreign Corrupt Practices Act should be debarred from receiving federal government contracts. Bills have been introduced in the 111th Congress to address this issue.
In addition to congressional scrutiny of the act, the executive branch appears to have increased oversight of suspected American businesses for alleged violations. There have been a number of settlements and indictments in 2010 concerning violations of the Foreign Corrupt Practices Act.
Date of Report: October 21, 2010
Number of Pages: 6
Order Number: R41466
Price: $19.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Legislative Attorney
The Foreign Corrupt Practices Act of 1977 (FCPA) was intended to prevent corporate bribery of foreign officials. The act has three major provisions; they concern the accounting standards of corporations, the requirements of Securities and Exchange Commission (SEC) registered issuers, and anti-bribery. The act was amended in 1988 and in 1998, but the three major areas of coverage remain.
Criticisms of the act’s operation and scope began almost immediately after its passage and have continued. These kinds of criticisms range from its being too strict and therefore harmful to the competitive position of American businesses to its being unethical by allowing certain kinds of payments to foreign officials in the course of doing business. Especially prominent recently have been suggestions that businesses convicted of violating the Foreign Corrupt Practices Act should be debarred from receiving federal government contracts. Bills have been introduced in the 111th Congress to address this issue.
In addition to congressional scrutiny of the act, the executive branch appears to have increased oversight of suspected American businesses for alleged violations. There have been a number of settlements and indictments in 2010 concerning violations of the Foreign Corrupt Practices Act.
Date of Report: October 21, 2010
Number of Pages: 6
Order Number: R41466
Price: $19.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
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