Foreign Corrupt Practices Act (FCPA)

The Foreign Corrupt Practices Act (FCPA) was enacted in 1977 in the wake of Watergate and amidst bribery scandals by large US defense contractors. Enforcement of the FCPA continues to be a high priority for the Securities and Exchange Commission (SEC). Upon passing the FCPA, Congress declared its policy that American companies should act ethically in bidding for foreign contracts and encourage the development of democratic institutions and honest, transparent, business practices. The SEC has a list of companies charged with violating the FCPA going back to 1978, and the list shows companies in all industries, of various sizes, for profit and not-for-profit, showing that all organizations should take active measures to comply with the law. Organizations with international operations should conduct FCPA reviews to verify compliance with the law. Companies with international operations must comply with the Foreign Corrupt Practices Act (FCPA) and internal auditors frequently review transactions and documents, perform walkthroughs and conduct interviews.