Federal lawmakers signed the Foreign Corrupt Practices Act (FCPA) into law here in the United States in 1977. This legislation made it illegal for individuals to bribe foreign officials to obtain or retain their business, licenses, loans and other necessary operational items.
This law doesn’t just apply to publicly-traded, domestic corporations, however. It also applies to those U.S. businesses operating from any part of the world.
Further applicability of the Foreign Corrupt Practices Act
FCPA applies to all of a company’s agents, whether they work for the company indirectly or directly. Stockholders, employees, board of directors and corporate officers must all comply with this federal law. So too must consultants, third-party agents, distributors and joint-venture partners.
Recordkeeping requirements under the Foreign Corrupt Practices Act
Parties subject to FCPA have specific recordkeeping requirements that they must meet. One of them is to maintain an accurate inventory of their assets, anyone’s access to them and transactions involving them. Companies must also ensure that an individual’s use and the intended one aligns.
It’s not uncommon for federal officials to appoint an independent consultant to monitor a company’s business dealings once they accuse them of violating FCPA either. The U.S. Securities and Exchange Commission (SEC) may levy its own set of punishments against a company’s employees, agents, stockholders, officers and directors in alignment with the FCPA’s anti-bribery provisions as well.
Why you shouldn’t take Foreign Corrupt Practices Act allegations lightly
Federal regulatory agencies and prosecutors have many investigative resources at their disposal to tap into when tracking a money trail. They generally won’t stop trying to sort out what happened until they’re entirely sure no impropriety occurred. Any company, agent, or employee who financially benefits from having inappropriate dealings with a foreign country may have to turn over financial incentives plus prejudgment interest on any proceeds they receive.
Going up against the government takes confidence and skill. You’ll want the federal crimes attorney that represents you in your Minneapolis case to be well-experienced in handling such serious legal matters here in Minnesota if you’re going to achieve the best outcome in your case.