The Foreign Corrupt Practices Act of 1977 (FCPA) was adopted by Congress to combat the widespread use of corporate funds for questionable and illegal foreign and domestic payments. The existence of such payments and ‘‘off the books’’ slush funds raised serious questions for the SEC about the integrity and accuracy of the financial statements of U.S. companies and whether the disclosure obligations at the core of U.S. securities laws were being undermined. The FCPA addressed the issue by making it illegal for a U.S. ‘‘issuer’’ or ‘‘domestic concern’’ to pay, offer, or promise a bribe to a foreign government official, political party, or party official for the purpose of influencing an official act in order to obtain or retain business.
This article was previously published in the FCPA Reporter.