Foreign Corrupt Practices Act - Research Paper Example

up to date record of factual money and other business transactions and to file these records with the United States Securities and Exchange Commission (National Institute on the Foreign Corrupt Practices Act 2008). An issuer is a company whose securities are listed in the U.S. or a company on which it is obligatory to file periodic records regarding company assets and business transactions to the SEC according to the Securities and Exchange Act of 1974. 2. Domestic concerns: ‘Domestic concerns’ is a wider category and encircles the individuals who are citizens, nationals of the U.S. It also encompasses the individuals who are the residents of the United States.

All corporations, partnerships, stock companies, and unincorporated organizations, companies listed in the United States Stock exchange which have their major businesses operating in the United States or in any common wealth country and are set up according to the laws of the U.S. are also included in the ‘Domestic Concerns’ category. Therefore, U.S. citizens, nationals or residents will be held responsible for the violation of FCPA even if the foreign officials were bribed outside the territory of United States.

Violation of FCPA consists of ‘five components’. If the government succeeds in proving the existence of these five components then the suspect is considered to have violated the FCPA and is subjected to further implications. Anti bribery provisions of FCPA states that it is illegal for U.S. companies, U.S. citizens and companies listed in the U.S. stock exchange to either directly or indirectly offer money, or anything that might be valuable to a foreign officer in exchange for acquiring or retaining business in the U.

S (Low et al 2009). Implementation of FCPA is not limited by U.S. territorial boundaries and in several cases FCPA violation is a direct result of corruption that takes place in company departments situated outside the U.S. Therefore, FCPA requires company owners to