Who does Foreign Corrupt Practices Act apply to?
Who Is Covered by the FCPA? The FCPA applies to two broad categories of persons: those with formal ties to the United States and those who take action in furtherance of a violation while in the United States. U.S. “issuers” and “domestic concerns” must obey the FCPA, even when acting outside the country.
What is FCPA regulation?
The Foreign Corrupt Practices Act (FCPA, the Act) is a United States law that prohibits U.S. firms and individuals from paying bribes to foreign officials to further business deals.
What is FCPA stand for?
Page 1. Foreign Corrupt Practices Act (“FCPA”) OVERVIEW. The Foreign Corrupt Practices Act (“FCPA”) was passed in 1977 in an effort to address concerns over the integrity of U.S. markets after hundreds of U.S. companies admitted to paying over $400 million to foreign government officials.
What is a domestic concern FCPA?
The FCPA outlines what it calls “issuers” and “domestic concerns” as targets of the FCPA. A “domestic concern” is a very broad term that essentially covers any company that has its primary place of business within the United States. Such individuals may be lawful residents of the U.S., U.S. nationals or U.S. citizens.
What activity is illegal under the Foreign Corrupt Practices Act?
The Foreign Corrupt Practices Act (FCPA), enacted in 1977, generally prohibits the payment of bribes to foreign officials to assist in obtaining or retaining business.
What are the benefits of complying with the FCPA?
In drafted and implemented appropriately, an FCPA compliance program will: serve as an invaluable tool against corruption, promote ethical conduct within the company, reduce the societal costs of corruption, and foster business expansion domestically and globally.
Does FCPA allow facilitation payments?
Facilitating payments are an exemption to the FCPA, NOT an affirmative defense. This means that the accused company can claim an alleged bribe was a facilitating payment and the burden of proof is on the government to prove otherwise.
Why was the FCPA created?
The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. (“FCPA”), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.
What is a foreign official under the FCPA?
“Foreign official” is defined very broadly under the FCPA. It includes all employees of non-U.S. national, state, provincial, and local governments and all their departments and agencies, from high-level officials to the low-level employees.
Why is the FCPA important?
The US Foreign Corrupt Practices Act (FCPA) is the most important corporate anti-bribery statute in the world. It bans companies from bribing foreign government officials to win business, and it requires publicly traded companies to keep books and records that adequately reflect financial transactions.
What is the maximum penalty under the FCPA?
For criminal violations, the FCPA provides significant penalties. For each violation of the law’s anti-bribery provisions, these penalties may include: Up to $2 million fine for corporations and other business entities. Up to $250,000 fine and imprisonment up to five years for individuals.
What did Marubeni plead guilty to in federal court?
Marubeni entered a plea of guilty to an eight-count criminal information filed today in the U.S. District Court for the District of Connecticut, charging Marubeni with one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and seven counts of violating the FCPA.
When is the sentencing date for Marubeni Corporation?
Marubeni admitted its criminal conduct and has agreed to pay a criminal fine of $88 million, subject to the district court’s approval. Sentencing has been scheduled for May 15, 2014.
What did the Marubeni Corporation do in Indonesia?
“For several years, the Marubeni Corporation worked in concert with a Connecticut company, among others, to bribe Indonesian officials in order to secure a contract to provide power-related services in Indonesia,” said Acting U.S. Attorney Michael J. Gustafson.
When did Marubeni start bribing PLN officials?
As admitted in court documents, Marubeni and its co-conspirators retained the first consultant in the fall of 2002. However, in the fall of 2003, before the Tarahan contract had been awarded, Marubeni and its co-conspirators determined that the first consultant was not bribing key officials at PLN effectively.