The Laws Regarding Foreign Business Transactions

The United States Congress passed the “Act” in 1977.  This refers to the Foreign Corrupt Practices Act and was created to address, investigate and put and end to the open and widespread problems of corruption and the participation in that corruption be it through acts of bribery, interacting with companies or officials who have been proven participate in terrorist financing,  money laundering, and extortion.  This was intended to protect the U.S. as well as bring down those within the country and abroad who were involved in such criminal activity.

This law states that it is a federal violation for any citizen involved in business transactions or any United State official to commit bribery in an attempt to secure prospective or continued business with a member of that foreign government.  This law extends to all companies that are publicly traded, be they limited to business conducted with the United States or on the international level. This law demands that accurate records are kept and that these records are to be transparent and available for review and scrutiny at all times.  This is in order to ensure that any corrupt act or violation be brought under investigation as soon as possible.

The United States is one of the few countries with such a thorough and all encompassing set of laws regarding corruption, and it is unfortunate that many of the countries of the world remain corrupt, as the US companies have lost business opportunities over the years through the limitations on dealing with corrupt nations.  Some have complained that in other countries, an act such as giving a gift is standard and customary behavior, while in the States that is considered bribery.  However that is a very fine line to walk, when the consequences of true corruption are so far reaching and devastating.

Related posts:

  1. Corruption, a Question of Morality
  2. The Combined Efforts of Government Agencies
  3. The Danger in Becoming Lax with FCPA Policy Enforcement
  4. A Different Business Model
  5. Business in Singapore
Filed under: Politics

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