Which law is cited as prohibiting bribery of foreign officials by U.S.-based company executives?

Which law is cited as prohibiting bribery of foreign officials by U.S.-based company executives?

• A. The Foreign Corrupt Practices Act
• B. The Securities Act
• C. The Tax Reform Act
• D. The Export Control Act

Answer: (A)

The main idea is the prohibition on bribery of foreign officials by U.S.-based executives. The Foreign Corrupt Practices Act makes it illegal for U.S. persons and businesses to offer, promise, or give anything of value to foreign officials to influence their official actions or to obtain or retain business. It also requires truthful books and records and effective internal controls, and it applies to U.S. companies and their officers, directors, and employees, including acts that occur abroad or in connection with U.S. securities. The other laws listed don’t address bribery of foreign officials: the Securities Act deals with securities disclosures and fraud in issuances, the Tax Reform Act covers taxation rules, and the Export Control Act regulates export controls for sensitive goods and technologies.

The main idea is the prohibition on bribery of foreign officials by U.S.-based executives. The Foreign Corrupt Practices Act makes it illegal for U.S. persons and businesses to offer, promise, or give anything of value to foreign officials to influence their official actions or to obtain or retain business. It also requires truthful books and records and effective internal controls, and it applies to U.S. companies and their officers, directors, and employees, including acts that occur abroad or in connection with U.S. securities. The other laws listed don’t address bribery of foreign officials: the Securities Act deals with securities disclosures and fraud in issuances, the Tax Reform Act covers taxation rules, and the Export Control Act regulates export controls for sensitive goods and technologies.