Discuss the effects of the FCPA on fraud and US Companies doing business globally

Expert Solution

Foreign Corrupt Practices Act (FPCA) has two provisions- Anti-Bribery and Accounting.

--Anti-Bribery: In essence, the Anti-Bribery Provisions make it a crime for any US individual, business entity or employee of a US business entity to provide or offer; directly or indirectly; an offer, promise to pay, payment, or authorization of payment of anything of value to a foreign government official; with corrupt intent; to influence an award, official action; in order to obtain or retain or redirect or gain an unfair advantage business.

--Accounting: The Accounting Provisions basically make it illegal for a company that reports to the SEC to have inaccurate or false records or to fail to maintain an adequate system of internal accounting controls

FCPA enforcement actions can also result in criminal charges that are inclusive of charges against individual company, management and employees. As a result it keep businesses honest and level the playing field in favour of competition, consequently consumers are benefited with the best products and services at the best price

ekkarill92 answered 1 year ago

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