8.4 FEDERAL LAWS AND REGULATIONS PROHIBITING BRIBERY: THE FOREIGN CORRUPT PRACTICES ACT (FCPA)

Question 1

WHAT IS THE FOREIGN CORRUPT PRACTICES ACT?

Answer 1

THE FCPA PROHIBITS COMPANIES FROM ENGAGING IN THE BRIBERY OF PUBLIC OFFICIALS AND OTHER TYPES OF NONGOVERNMENTAL ENTITIES FOR PURPOSES OF RETAINING OR DIRECTING BUSINESS OPPORTUNITIES.

INTERNAL CONTROLS MUST ALSO BE IN PLACE TO PREVENT THE HAPPENINGS.

FCPA CARRIES FINES UP TO 250K AND PRISON TERMS UP TO 5 YEARS.

IN ADDITION, THE FEDERAL GOVERNMENT CAN SEEK TO RECOUP TWICE THE AMOUNTS OF PROFIT ON THE CONTRACT AWARDED AS A RESULT OF THE BRIBE.