FCPA—who it applies to and what it prohibits (US)

Published by a ��Ӱ�� Corporate Crime expert

Practice notes

FCPA—who it applies to and what it prohibits (US)

Published by a ��Ӱ�� Corporate Crime expert

Practice notes

What is the FCPA and what does it prohibit?

The Foreign and Corrupt Practices Act (FCPA) was enacted in 1977 but later amended to permit facilitation payments following complaints from industry that the FCPA was restricting business.

The FCPA is part of the US Securities Exchange Act of 1934 and has two main provisions:

•
the anti-bribery provisions; and
•
the books and records and internal control provisions

The FCPA anti-bribery provisions prohibit the corrupt payment of money or 'anything of value' to a 'foreign official' in order to 'obtain or retain business'. Examples of things of value include excessive travel or entertainment expenses, a promise of future employment, or any gifts that are intended to obtain or retain business.

The FCPA defines 'foreign official' as

'any officer or employee of a foreign government or any department, agency, or instrumentality thereof, or of a public international organization, or any person acting in an official capacity for or on behalf of any such government or department, agency, or instrumentality, or for or on behalf of

Jurisdiction(s):

United Kingdom

Key definition:

Facilitation payment definition

What does Facilitation payment mean?

A term for small payments other than a fee paid directly to a public official sometimes legal but often counting as a bribe.

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