CRIMINALIZATION OF PAYMENTS TO INFLUENCE FOREIGN GOVERNMENTS

• NCJ Number: 48043
• Author(s): ANON
• Date Published: 1977
• Length: 32 pages
• Corporate Author: American Enterprise Institute for Public Policy Research
• Sale Source: American Enterprise Institute for Public Policy Research
• Language: English
• Country: United States of America

Annotation

LEGISLATIVE PROPOSALS AND ARGUMENTS REGARDING THE CRIMINALIZATION OF PAYMENTS BY AMERICAN BUSINESSES TO INFLUENCE THE POLITICAL PROCESSES OF FOREIGN COUNTRIES ARE ANALYZED.

Abstract

THE LEGISLATION UNDER CONSIDERATION IS S. 305 AND H.R. 3815, BOTH OF WHICH WOULD AMEND THE SECURITIES EXCHANGE ACT TO PROHIBIT PAYMENTS TO INFLUENCE FOREIGN GOVERNMENTS. THE HOUSE PROPOSAL DIFFERS FROM THE SENATE PROPOSAL IN THAT THE FORMER IS BROADER WITH REGARD TO PURPOSES FOR WHICH PAYMENTS ARE PROHIBITED AND OMITS THE ACCOUNTING STANDARDS AND CONTROL REQUIREMENTS (AND THEIR RELATED CRIMINAL PROHIBITIONS) INCLUDED IN THE SENATE BILL. ARGUMENTS FOR CRIMINALIZATION OF BRIBES TO FOREIGN GOVERNMENTS TOUCH ON THE NEED FOR CRIMINAL SANCTIONS, THE SHORTCOMINGS OF THE DISCLOSURE ALTERNATIVE TO CRIMINALIZATION, THE PRACTICALITY OF CRIMINALIZATION, THE NEED TO RESTORE CONFIDENCE IN AMERICAN BUSINESS, THE NEED TO AID CORPORATE OFFICIALS IN RESISTING PRESSURES PLACED ON THEM BY FOREGIN OFFICIALS, LIKELY IMPACT ON FOREIGN RELATIONS, ASSISTANCE IN OBTAINING TREATIES, AND THE NEED TO RESTORE FAIR COMPETITION. ARGUMENTS AGAINST CRIMINALIZATION CITE A LACK OF NEED FOR DIRECT CRIMINALIZATION, ENFORCEMENT PROBLEMS, LACK OF FAIRNESS, COMPETITIVE DISADVANTAGES FOR AMERICAN BUSINESSES, NEGATIVE IMPACT ON FOREIGN RELATIONS, AND DRAFTING PROBLEMS. A SEPARATE ANALYSIS COVERS THE ADVANTAGES AND DISADVANTAGES OF THE ACCOUNTING PROVISIONS INCLUDED IN S. 305. NO CONCLUSIONS OR RECOMMENDATIONS ARE OFFERED. (LKM)