Question

Is the Foreign Corrupt Practices Act Obsolete? Please answer in a paragraph or two and reference.

Answer 1

Corruption poses a significant legal and economic risk for corporations doing buisness around the world, particularly in developing and transitioning countries. The United States Department of justice and the securities and exchange commission are leading the international fight against corruption by increasing the number of investigation settlement and proscution for violations of the foriegn corrupt.

Because of these increased enforcement activity managers and directars who run multinational corporations are rightfully concerned efforts in order to minimize the risks posed by foreign bribery an organization must have a clear understanding must have a clear understanding of the practice prohibited by the FCPA and other applicable laws such as U.S regulations against money laundering, racketering and conspirancy. Leaders and legal advisors must also remain up to date on trends in enforcement. Finally the managers who run the organisation must be able to recognize "red flags" circumtances under which the risk of corrupt practices is high and enforcement authorities expect corporations to be particularly vigilant.