NCJ Number
120570
Journal
American Criminal Law Review Volume: 26 Issue: 3 Dated: (Winter 1989) Pages: 855-873
Date Published
1989
Length
19 pages
Annotation
This article details the original provisions of the Foreign Corrupt Practices Act, enacted in 1977, as well as the background for amendments made to the statute in 1988.
Abstract
The Foreign Corrupt Practices Act was created to require American corporations carrying out business in foreign countries to keep accurate records of their dealings in order to prevent bribery and to forbid certain types of payments to foreign officials, political parties, or officials of political parties. The accounting and antibribery provisions of the statute are discussed in detail, as are penalties for violating the Act. Civil prosecution of the accounting provisions of the statute is carried out by the Securities and Exchange Commission. Criminal prosecutions under the Act are the responsibility of the Department of Justice. American exporters doing business abroad have criticized the chilling effect of the Act on their ability to make foreign sales. In response to these complaints, Congress amended the statute to eliminate criminal liability for inadvertent or technical error in recordkeeping and internal accounting and control provisions. The amendments also clarified issuer responsibilities and certain prohibited trade practices, attempting to strike a balance that allowed market freedoms but restricted corrupt practices. 114 footnotes.