Corruption : Transnational Bribery : Foreign Corrupt Practices Act

In 1977, during Waterwate investigation, a commission of United States Congress discovered more than 300 briberies given by American companies to foreign government's officials. Then, the Carter Administration promoted a punitive law for similar cases in the future. The American public opinion gave strong support to that measure. The same year the Congress approved the Foreign Corrupt Practices Act including it in the United States Code.

The Foreign Corrupt Practices Act (FCPA) contains stern punishments to American issuers and domestic concerns, their directors, managers and employees when they give briberies to foreign officials. That law was the first precedent of penalization to transnational bribery. It was a sole precedent during 20 years (See at this site: The Interamerican Convention Against Corruption and OECD Convention).

The F.C.P.A. is, really, two rules: One for American ISSUERS and another for DOMESTIC CONCERN. The first rule's enforcement has relationship with the Security and Exchange Commission's activity. The second rule also contains a preventive program by the U.S. Attorney General and severe measures for American companies.

Issuers

Domestic Concerns