Essay about The Foreign Corrupt Practice Act

1116 Words Aug 9th, 2013 5 Pages
The Foreign Corrupt Practice Act

Abstract

The paper explores the focus on the Foreign Corrupt Practice Act and its correlation with other governmental firms. In the United States, foreign transactions are closely viewed by the government to insure that no funds are being transferred to country foreign officials for business purposes. To avoid this type of activity, the Foreign Corrupt Practices Act was implemented. In this paper you will read about the FCPA as a whole as well as how it was implemented, by whom it is enforced, the violations, amongst others.

Foreign Corrupt Practice Act

There are many companies in the United States who conduct business with firms all over the world.
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Exim.gov. Web. 23 July. 2010.)

After reading thoroughly the information on EXIM, most of the firms that made payment to these foreign officials have been subjected to criminal and civil actions which result in fines, suspensions and prison time. Many companies have implemented a compliance programs with procedures to avoid this type of consequences that can heavenly affect the firm and reputation. In many financial institutions, these types of procedures are implemented as well as trainings to detect these types of transactions to third parties are also important.
In addition, the FCPA also works with the Office of Foreign Assets Control (OFAC) which is part of the US Department of the Treasury. “They administer and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and individuals engaged in threats to the United States”. (Office-of-Foreign-Assets-Control. treasury.gov. Web. 9 Sept. 2012). Many financial firms and government companies check the OFAC SDN list on a regular basis to make sure that no persons related to a transaction are listed in this list. If a person is found to be listed in the OFAC hit, a series of procedures need to be put in place to comply with the law regulations.
The penalties involved in violating the FCPA are severe and are

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