The Cost of Doing Business? Laws Against Bribery of Foreign Public Officials in International Business Transactions
Date:
January 13 2012
The United States was the first country to enact legislation against bribery of foreign officials with the implementation of the Foreign Corrupt Practices Act in 1977. As a result of investigations made by the Securities and Exchange Commission in the United States in the mid-1970’s, over 400 U.S. companies admitted making questionable or illegal payments in excess of $300 million to foreign government officials, politicians, and political parties. The abuses ranged from bribery of high foreign officials to secure favourable action by a foreign government to facilitation payments that were allegedly made to ensure that government functionaries discharged certain ministerial or clerical duties. Congress enacted the FCPA to halt the bribery of foreign officials and restore public confidence in the integrity of the American business system.
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