What legislation makes it illegal for U.S. companies to bribe foreign officials?

The Foreign Corrupt Practices Act (FCPA) is the legislation that specifically prohibits U.S. companies from bribing foreign officials to obtain or retain business. Enacted in 1977, the FCPA was established to combat corrupt practices in the international business environment and promote transparency in foreign dealings. This act not only addresses bribery but also imposes certain accounting and record-keeping requirements on companies.

The key provision of the FCPA makes it illegal for U.S. citizens and entities to offer, pay, or promise money or anything of value to a foreign official for the purpose of influencing any act or decision in their official capacity. This includes any attempt to secure advantageous contracts or enhance competitive positions in foreign markets. The act emphasizes the importance of maintaining ethical standards in international business practices.

Other options, while significant in their respective areas of law and governance, do not specifically target the issue of bribery of foreign officials. For instance, the Sarbanes-Oxley Act (SOX) primarily focuses on corporate governance and financial disclosures, while the Racketeer Influenced and Corrupt Organizations Act (RICO) addresses organized crime activities. The Securities and Exchange Commission (SEC) is a regulatory body that oversees the securities industry and enforces federal securities