Essay about The Foreign Corrupt Practices Act

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The Foreign Corrupt Practices Act, or FCPA, is an act that was put into place in 1977 to control the dealings US persons or entities would have with foreign officials. The act make it unlawful for any US party to pay, whether it is directly or indirectly, with money or anything else of value, to a foreign official in exchange for obtaining or retaining a business (FCPA Enforcement). In addition to this, any company that trades securities in the US is required to file periodic report to the Securities and Exchange Commission to have record of any business transactions in order to maintain effective internal controls (Department of Justice).

In the US, most contracts are formed privately allowing entities to control their business
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When it comes to bribery, the Department of Justice is very strict about what it views as a violation. Any payment or gift that is given towards an official that has the power to manipulate the outcome of a business contract, and is given for this purpose, is prohibited. It can, however, be difficult to determine when a payments or gift was made for this purpose. Because of this the Department of Defense keeps a very close eye on these transactions to make sure that type of behavior is not overlooked. As an example, there was a case of an American corporation that investigated for assisting an official in getting his daughter a US education. Even though it was found it was not for purposes of bribery it shows how strict the Department of Defense can be with these situations (Stackhouse, 1993). It should also be noted that this would not apply to gift given to officials with less power solely for the sake of speeding up the processing of contracts that were already accepted as this would not fall under the guidelines of obtaining new beneficial contracts. In order for the Department of Justice to be able to enforce and detect violations to the bribery rules there would need to rules in place to keep track of the accounting of these business entities. This would also be needed to allow innocent parties to prove their innocence. So because of this, the

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