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The Foreign Corrupt Practices Act - Research Paper Example
Finance & Accounting
Pages 7 (1757 words)
THE FOREIGN CORRUPT PRACTICES ACT (COURSE) (NAME) (EMAIL ADDRESS) (DATE) ABSTRACT The FCPA is a law which was established as a means to make illegal the bribery of foreign officials and to prevent issues in accounting practices. It was passed in the midst of a US proliferation of illegal corporate practices…
INTRODUCTION This paper shall discuss the Foreign Corrupt Practices Act of 1977 (FCPA), which is a United States federal law passed mainly to ensure accounting transparency as mandated by the Securities Exchange Act of 1934. It also includes provisions meant to address the bribery of foreign officials. This paper shall discuss the act, including its pertinent details and essential provisions, as well as its reasons for passage and application. II. BODY The Foreign Corrupt Practices Act is a law which includes specific provisions on accounting and prohibitions on bribery (Cook and Connor, p. 2). The accounting provisions of the law are meant to prohibit illegal accounting practices which are often carried out to conceal corrupt practices. The provisions are also meant to guarantee that company shareholders, including the Securities and Exchange Commission are given an accurate picture of corporate status and finances (Cook and Connor, 2010). This law covers two groups of corporate personalities, first are “those with formal ties to the United States and those who take action in furtherance of a violation while in the United States” (Cook and Connor, 2010, P. 2). The US issuers and domestic concerns are required to heed the provisions of the FCPA, regardless of their actions being within or outside the US territories. ...