If you are one of the many people who have ever heard news stories about allegations relating to foreign corruption, you may wonder what laws are in place regarding these things. Since 1977, the United States has utilized the Foreign Corrupt Practices Act in an attempt to prevent instances of foreign corruption from occurring. It can, however, be difficult at times to differentiate between a potentially corrupt business transaction and a legal one. This may contribute to allegations being made that are not accurate.
FCPA coverage expansions
As explained by the U.S. Department of Justice, the coverage of the Foreign Corrupt Practices Act has expanded over time since it was first enacted in the late 1970s. The original act banned payments from specific individuals or entities in the U.S. to foreign officials as part of a business transaction. Today, all U.S. citizens, foreign companies with securities held in the U.S. and foreign issuers of securities may be bound by the provisions of the FCPA. Some of the amendments to the FCPA were put in place in the late 1990s.
Accounting and recordkeeping under the FCPA
One of the elements of the Foreign Corrupt Practices Act includes detailed guidelines regarding the required controls for internal accounting practices and the tracking, documenting and reporting of financial transactions and records.
This information is not intended to provide legal advice but is instead meant to provide to residents and businesses in Texas with an overview of what the Foreign Corruption Practices Act is intended to do and what individuals or entities are bound by its provisions.