NCJ Number
143688
Journal
American Criminal Law Review Volume: 30 Issue: 3 Dated: (Spring 1993) Pages: 773-788
Date Published
1993
Length
16 pages
Annotation
This review of the Federal Foreign Corrupt Practices Act (FCPC) addresses elements of the offense, affirmative defenses, U.S. Attorney General's guidelines and opinions, penalties, related international agreements, and enforcement.
Abstract
The FCPC was enacted in 1977 as a response to a series of corporate bribery scandals during the 1970's that involved foreign government officials who were dealing with U.S. firms. The FCPC establishes corporate accounting provisions that serve as an indirect internal deterrent, and it has antibribery provisions that prohibit certain types of payments to foreign officials, political parties or their officials, or to intermediaries who might make such payments. The FCPA was amended in 1988. The act provides two affirmative defenses. The first allows "payment, gift offer, or promise of anything of value" to a foreign official, a political party, or a candidate's country, provided that such offerings are in accordance with the written laws of that country. The second affirmative defense encompasses payments, gifts, offers, or promises of anything of value that constitutes a "reasonable and bona fide expenditure." The 1988 amendments significantly increased the fines for violation of the FCPA. A domestic party convicted under the antibribery provisions is subject to a fine of up to 2 million dollars for criminal violations. Civil penalties are also possible. Violations of the bribery and the recordkeeping provisions of the FCPA result in a base line offense of 2 to 8 months under the Sentencing Guidelines. Although international agreements were envisioned under the FCPA, they have not developed; the unilateral nature of the FCPA continues to hinder American businesses forced to operate under stricter standards than foreign competitors abroad. 114 footnotes