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INTRODUCTION
Introduction
Congress enacted the U.S. Foreign Corrupt Practices Act (FCPA or the Act) in
1977 in response to revelations of widespread bribery of foreign officials by U.S.
companies. The Act was intended to halt those corrupt practices, create a level
playing field for honest businesses, and restore public confidence in the integ-
rity of the marketplace.
The FCPA contains both anti-bribery and accounting
provisions. The anti-bribery provisions prohibit US. per-
sons and businesses (domestic concerns), U.S. and foreign
public companies listed on stock exchanges in the United
States or which are required to file periodic reports with
the Securities and Exchange Commission (issuers), and
certain foreign persons and businesses acting while in the
territory of the United States (territorial jurisdiction) from
making corrupt payments to foreign officials to obtain or
retain business. The accounting provisions require issuers
to make and keep accurate books and records and to devise
and maintain an adequate system of internal accounting
controls. The accounting provisions also prohibit individu-
als and businesses from knowingly falsifying books and
records or knowingly circumventing or failing to imple-
ment a system of internal controls.
The Department of Justice (DOJ) and the
Securities and Exchange Commission (SEC) share FCPA
enforcement authority and are committed to fighting for-
eign bribery through robust enforcement. An important
component of this effort is education, and this resource
guide, prepared by DOJ and SEC staff, aims to provide
businesses and individuals with information to help them
abide by the law, detect and prevent FCPA violations, and
implement effective compliance programs.
The Costs of Corruption
Corruption is a global problem. In the three decades
since Congress enacted the FCPA, the extent of corporate
bribery has become clearer and its ramifications in a trans-
national economy starker. Corruption impedes economic
growth by diverting public resources from important pri-
orities such as health, education, and infrastructure. It
undermines democratic values and public accountability
and weakens the rule of law? And it threatens stability and
security by facilitating criminal activity within and across
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