U.S. Foreign Corrupt Practices Act (FCPA)

The US Foreign Corrupt Practices Act of 1977 (“FCPA”) generally prohibits US companies and citizens, foreign companies listed on a US stock exchange, or any person acting while in the United States, from corruptly paying or offering to pay, directly or indirectly, money or anything of value to a foreign official to obtain or retain business (the “Anti-bribery Provisions”).  The FCPA also requires “issuers” (any company including foreign companies) with securities traded on a U.S. exchange or otherwise required to file periodic reports with the Securities and Exchange Commission (“SEC”)) to keep books and records that accurately reflect business transactions and to maintain effective internal controls (the “Books and Records and Internal Control Provisions).

The FCPA is jointly enforced by the Department of Justice (“DOJ”) and the SEC.  Proof of a US territorial nexus is not required for the FCPA to be implicated against US companies and citizens, and FCPA violations can, and often do, occur even if the prohibited activity takes place entirely outside of the United States.  For this reason, business leaders must be knowledgeable about all business activity, including activity that takes place thousands of miles away from corporate headquarters.

Clements Global Services LLC
A Veteran Owned Business
20210 Cool Spring Road
Milton, DE 19968-3303
Telephone: 215-341-2299
Fax: 302-945-4572
[email protected]