Federal Corrupt Practices Act
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The FCPA was introduced to stop the briberies and illegal means of transactions among the politicians and the corporations. The illegal behavior was punishable by secondary sources of legislation which are:
1. The Securities and Exchange Commission (SEC) which penalizes those who fail to pay the securities. 2. The Bank Secrecy Act which handles the disclosures of all the transactions. 3. The Mail Fraud Act to prevent all the fraudulent schemes during transactions. |
FCPAThe FCPA legislation is enforced jointly by the U.S Department Of Justice (DOJ) and the Securities and Exchange Commission (SEC).
The act focuses on to distinct areas : Disclosure: "The act requires corporations to fully disclose any and all transactions conducted with foreign officials and politicians, in line with the SEC provisions." Prohibition: "The act includes wording from the Bank Secrecy Act and the Mail Fraud Act to prevent the movement of funds overseas for the express purpose of conducting a fraudulent scheme". Ghillyer, A. 2014. Business Ethics Now: Chapter 6, The Role Of Government. United States of America: McGraw-Hill Education
FCPA Training Video (Foreign Corrupt Practices Act) (YouTube), https://www.youtube.com/watch?v=d9GOr7AX4gU |