United States—Deconstructing the FCPA

Abstract

In 1976, the Securities and Exchange Commission (SEC) issued its groundbreaking Report of the Securities and Exchange Commission on Questionable and Illegal Corporate Payments and Practices, which characterized the problem of corrupt and illegal corporate payments as “serious and widespread.” Enacted in 1977, the Foreign Corrupt Practices Act of 1977 (FCPA) prohibits corrupt payments of money or anything of value to foreign officials in order to obtain or retain business. The FCPA continues to serve as the world’s only true anti-bribery touchstone against which subsequent enactments can be compared textually. Adherence to the directives of the FCPA continues as one of the most prominent issues in corporate compliance. The consequences of a DOJ investigation for an organization can be substantial and attention-diverting, a settlement can be costly, and an indictment can be crippling.