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HOUSE_OVERSIGHT_022504

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Introduction Congress enacted the U.S. Foreign Corrupt Practices Act (FCPA or the Act) in 1977 in response to revelations of widespread bribery of foreign officials by U.S. companies. The Act was intended to halt those corrupt practices, create a level playing field for honest businesses, and restore public confidence in the integ- rity of the marketplace. The FCPA contains both anti-bribery and accounting enforcement authority and are committed to fighting for- provisions. The anti-bribery provisions prohibit US. per- eign bribery through robust enforcement. An important sons and businesses (domestic concerns), U.S. and foreign component of this effort is education, and this resource public companies listed on stock exchanges in the United guide, prepared by DOJ and SEC staff, aims to provide States or which are required to file periodic reports with businesses and individuals with information to help them the Securities and Exchange Commission (issuers), and abide by the law, detect and prevent FCPA violations, and certain foreign persons and businesses acting while in the implement effective compliance programs. territory of the United States (territorial jurisdiction) from making corrupt payments to foreign officials to obtain or The Costs of Corru ption retain business. The accounting provisions require issuers Corruption is a global problem. In the three decades to make and keep accurate books and records and to devise since Congress enacted the FCPA, the extent of corporate and maintain an adequate system of internal accounting bribery has become clearer and its ramifications in a trans- controls. The accounting provisions also prohibit individu- national economy starker. Corruption impedes economic als and businesses from knowingly falsifying books and growth by diverting public resources from important pri- records or knowingly circumventing or failing to imple- orities such as health, education, and infrastructure. It ment a system of internal controls.

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