The Foreign Corrupt Practices Act regulates the payment of bribes by U.S. firms to officials in foreign countries where such practices are customary.

Question

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The statement is true. The Foreign Corrupt Practices Act (FCPA) prohibits the payment of bribes to foreign officials for the purpose of obtaining or retaining business. The FCPA applies to all U.S. companies, as well as foreign firms and individuals that take any action in furtherance of a corrupt payment while in the United States. The fact that bribery may be customary in a foreign country does not excuse the practice by U.S. firms.

The Foreign Corrupt Practices Act Regulates the Payment of Bribes