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Discuss the Effects of the Fcpa on Fraud Within the United States.

In: Business and Management

Submitted By treeland3030
Words 261
Pages 2
The Foreign Corrupt Practices Act is a federal law that prohibits companies from paying bribes to foreign political figures and government officials for the purpose of obtaining business. FCPA has become a major compliance focus recently, especially the past three years. The FCPA has two sets of provisions, the accounting provision, enforced by the Securities and Exchange Commission, and the anti-bribery provisions, enforced by the U.S. Department of Justice. In the act, there are three types of entities prohibited from making improper payments: issuers, domestic concerns, foreign nationals and businesses.
In my opinion, FCPA is working effectively within the U.S.. In 2009, more than three times as many FCPA cases were brought in 2009 comparing with those in 2005, The reason is because the government has been stepping up EFPA enforcement actions more than ever. Moreover, the Securities and Exchange Commission has also created a dedicated FCPA unit, and added attorneys and supervisors. Throughout developing a FCPA due diligence process on third parties and intermediaries, the organizations can create more economic and potential benefits.
For those U.S. companies doing business abroad, there are something they need to think about. First, the cost imposed by the FCPA is high if conducting the business in a country with high corruption level. In the other hand, the FCPA may create a uneven playing field somehow for American businesses and the foreign competitors would persistently seek to take advantage of this fact. However, the most interesting part is what those competitors precisely do are buying an unfair services through

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