Foreign Corrupt Practices Act

The Foreign Corrupt Practices Act (FCPA) is a federal law that applies to organizations registered with the U.S. Securities and Exchange Commission (SEC). It prohibits the use of bribes and other forms of corrupt payment to foreign government and political officials in order to gain business advantages. The FCPA also requires that businesses maintain accurate and complete books and records related to their international activities, and prohibits the falsification of financial information used to influence foreign governments. The FCPA's books and records provisions are intended to assist federal law enforcement in detecting and prosecuting white-collar crimes related to international bribery by requiring companies to create detailed records that provide an audit trail. Those found guilty of violating the FCPA can face significant criminal penalties, including hefty fines, prison sentences and corporate probation.