What companies does FCPA apply to?
Passed in 1977 and amended in 1998, the anti-bribery provisions of the FCPA apply to “domestic concerns.” That is, FCPA applies to any corporation, partnership, association, trust, unincorporated organization, or sole proprietorship with its principal place of business in the United States, or organized under U.S. law.
Who must comply with FCPA?
Who Is Covered by the FCPA? The FCPA applies to two broad categories of persons: those with formal ties to the United States and those who take action in furtherance of a violation while in the United States. U.S. “issuers” and “domestic concerns” must obey the FCPA, even when acting outside the country.
Does the FCPA apply to private companies?
It is a common misconception that the Foreign Corrupt Practices Act (FCPA) applies only to public companies and not to private companies. In fact, private companies are subject to the FCPA anti-bribery provisions.
Who does the FCPA bribery prohibition apply?
The FCPA can apply to prohibited conduct anywhere in the world and extends to publicly traded companies and their officers, directors, employees, stockholders, and agents. Agents can include third party agents, consultants, distributors, joint-venture partners, and others.
Does FCPA apply to contractors?
Many believe that the FCPA applies only to large companies or conglomerates, but its application is far broader; any U.S. business, U.S. person or foreign national in the United States doing business abroad, directly or indirectly through independent contractors or agents, should consider the FCPA’s reach and …
Does FCPA apply to US officials?
No. The FCPA applies both to the conduct of a U.S. citizen while that citizen is in a foreign country, as well as to actions taken in the U.S. “in furtherance of” the corruption of a foreign official.
Is FCPA applicable to Indian companies?
The FCPA can apply to prohibited conduct anywhere in the world and extends to publicly traded companies and their officers, directors, employees, stockholders, and agents. The FCPA also requires companies whose securities are listed in the U.S. to meet its accounting provisions.
Is it illegal to bribe a foreign official?
Under the Foreign Corrupt Practices Act (FCPA), it is unlawful for a U.S. person or company to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business.
Who is a foreign official under the FCPA?
The FCPA defines “foreign official” broadly: “any officer or employee of a foreign government or any department, agency, or instrumentality thereof … or any person acting in an official capacity for or on behalf of any such government or department, agency, or instrumentality.” How does a “royal” fit within this …
Who is considered a foreign officials under FCPA?
“Foreign official” is defined very broadly under the FCPA. It includes all employees of non-U.S. national, state, provincial, and local governments and all their departments and agencies, from high-level officials to the low-level employees.
What activities does the FCPA make illegal for US companies?
The FCPA has two primary sections. The first section makes it illegal to bribe foreign officials (the anti- bribery provisions) and the second section imposes record keeping and internal accounting requirements upon publicly traded U.S. companies like the Company (the accounting provisions).
Who does the FCPA apply to in the USA?
Who Does the FCPA apply to? The FCPA is of extremely wide scope. The anti-bribery provisions apply to: Any foreign person or firms who cause, either directly or via agents, commit an act in furtherance of a corrupt payment in the United States;
How does the FCPA apply to foreign bribery?
The FCPA is of extremely wide scope. The anti-bribery provisions apply to: Any foreign person or firms who cause, either directly or via agents, commit an act in furtherance of a corrupt payment in the United States; The accounting provisions only apply to entities, and those acting on behalf of entities, that are listed on US stock exchanges.
What are the accounting provisions of the FCPA?
The accounting provisions which relate to the books, records, internal controls, and accounting practices that must be maintained in order to comply with the FCPA.
Who is a domestic concern under the FCPA?
Domestic concerns: A domestic concern is any business incorporated in the United States; any foreign or domestic business that has its principal place of business in the United States; or any individual who is a citizen, national, or resident of the United States.[5]