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HOUSE_OVERSIGHT_022512

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The FCPA: Anti-Bribery Provisions THE FCPA: ANTI-BRIBERY e = The FCPA addresses the problem of international corruption in two ways: (1) the anti-bribery provisions, which are discussed below, prohibit individuals and businesses from bribing foreign government officials in order to obtain or retain business and (2) the accounting provisions, which are discussed in Chapter 3, impose certain record keeping and internal control requirements on issuers, and prohibit individuals and companies from knowingly falsifying an issuer's books and records or circumventing or failing to implement an is- suer’s system of internal controls. Violations of the FCPA can lead to civil and criminal penalties, sanctions, and remedies, including fines, disgorgement, and/or imprisonment. In general, the FCPA prohibits offering to pay, pay- their officers, directors, employees, agents, and sharehold- ing, promising to pay, or authorizing the payment of money ers; (2) “domestic concerns” and their officers, directors, or anything of value to a foreign official in order to influ- employees, agents, and shareholders; and (3) certain per- ence any act or decision of the foreign official in his or her sons and entities, other than issuers and domestic concerns, official capacity or to secure any other improper advantage acting while in the territory of the United States. in order to obtain or retain business.“ Issuers—15 U.S.C. § 78dd-1 Who Is Covered by the Anti-Bribery Provisions? Section 30A of the Securities Exchange Act of 1934 The FCPA’s anti-bribery provisions apply broadly to (the Exchange Act), which can be found at 15 US.C. three categories of persons and entities: (1) “issuers” and § 78dd-1, contains the anti-bribery provision governing 10 HOUSE_OVERSIGHT_022512

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