What is the primary purpose of the FCPA?

The primary purpose of the Foreign Corrupt Practices Act (FCPA) is to combat bribery of foreign officials. The FCPA was enacted to prohibit U.S. companies and individuals from making payments to foreign officials to assist in obtaining or retaining business. This law underscores the importance of ethical conduct in international business transactions and seeks to promote fair competition by eliminating corrupt practices that can distort the marketplace.

By targeting the bribery of foreign officials, the FCPA also reinforces U.S. foreign policy goals by encouraging transparency and accountability in the dealings of American businesses abroad. This focus on bribery rather than other forms of misconduct, like insider trading or consumer protection, is what distinguishes it from other regulations in the business law landscape.

The act includes provisions requiring companies to maintain accurate books and records, ensuring that any payments made do not disguise the true nature of transactions. This combination of anti-bribery measures and accounting controls highlights the FCPA's role in promoting integrity in international business.