Editing Foreign Corrupt Practices Act (section)

== Provisions and scope ==
The core aim of the FCPA is to prohibit companies and their individual officers from influencing foreign officials with any personal payments or rewards.<ref name="McGraw-Hill Education">{{cite book|last1=Luthans|first1=Fred|last2=Doh|first2=Jonathan|title=International Management Culture, Strategy, and Behavior|date=2012|publisher=McGraw-Hill Education|location=New York, NY|isbn=978-0-07-786244-2|edition=8th}}</ref> FCPA applies to any person who has a certain degree of connection to the United States and engages in corrupt practices abroad, as well as to U.S. businesses, foreign corporations trading securities in the U.S., American nationals, citizens, and residents acting in furtherance of a foreign corrupt practice, whether or not they are physically present in the U.S. This is considered the [[nationality principle]] of the Act. Any individuals involved in these activities may face prison time.<ref>{{Cite web |title=fcpa-guide-2020_final.pdf |website=United States Department of Justice |url=https://www.justice.gov/criminal/criminal-fraud/file/1292051 |access-date=2024-04-25}}</ref> In the 1992 case US v. Liebo, the DOJ filed a case against the vice president in charge of the Aerospace division of Napco International Inc. for violations in accordance with the FCPA. After pleading guilty, Liebo was sentenced to a term of 18 months for the offense violating FCPA's anti-bribery provisions.<ref>{{Cite web |title=Foreign Corrupt Practices Act: Enforcement Action Dataset |url=https://fcpa.stanford.edu/enforcement-action.html?id=451 |access-date=2024-04-25 |website=fcpa.stanford.edu}}</ref>  

The FCPA also extends to foreign companies and individuals who engage in corrupt practices while in the United States, even if the actual bribery occurs outside the country. This extraterritorial reach is based on the principle of territorial jurisdiction. For example, in 2013, French oil and gas company [[TotalEnergies|Total S.A.]] agreed to pay a $245.2 million penalty to settle FCPA charges related to bribes paid to an Iranian official to obtain oil and gas concessions.'''<ref>{{Cite web |date=2013-05-29 |title=Office of Public Affairs {{!}} French Oil and Gas Company, Total, S.A., Charged in the United States and France in Connection with an International Bribery Scheme {{!}} United States Department of Justice |url=https://www.justice.gov/opa/pr/french-oil-and-gas-company-total-sa-charged-united-states-and-france-connection-international |access-date=2024-04-26 |website=www.justice.gov |language=en}}</ref> '''Although the bribery scheme occurred entirely outside the United States, the SEC and DOJ asserted jurisdiction because Total had registered securities with the SEC and made corrupt payments through U.S. banks.<ref>{{Cite web |title=SEC.gov {{!}} SEC Charges Total S.A. for Illegal Payments to Iranian Official |url=https://www.sec.gov/newsroom/press-releases/2013-2013-94htm |access-date=2024-11-01 |website=www.sec.gov}}</ref>

In the case of foreign [[natural person|natural]] and [[juridical person|legal person]]s, the Act covers their deeds if they are in the U.S. at the time of the corrupt conduct. This is considered the [[protective principle]] of the Act.<ref name="McGraw-Hill Education" /> Moreover, the FCPA governs not only direct payments to foreign officials, candidates, and parties, but payments made to any other recipient in furtherance of influencing a foreign official, candidate, or party. These payments are not restricted to monetary forms and may include anything of value.<ref>{{cite web |title=Combating Corruption Under International Law |work=School of Law, Duke University |format=PDF |first=Alejandro |last=Posadas |url=http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1220&context=djcil&sei-redir=1&referer=http%3A%2F%2Fscholar.google.ca%2Fscholar%3Fhl%3Den%26lr%3D%26q%3Drelated%3AZxeqpMkkQygJ%3Ascholar.google.com%2F%26um%3D1%26ie%3DUTF-8%26sa%3DX%26ei%3D6rGxUNHII-nM2AWC4YF4%26ved%3D0CDQQzwIwAA#search=%22related%3AZxeqpMkkQygJ%3Ascholar.google.com%2F%22 |access-date=2012-11-25 |archive-url=https://web.archive.org/web/20140506200443/http://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=1220&context=djcil&sei-redir=1&referer=http%3A%2F%2Fscholar.google.ca%2Fscholar%3Fhl%3Den%26lr%3D%26q%3Drelated%3AZxeqpMkkQygJ%3Ascholar.google.com%2F%26um%3D1%26ie%3DUTF-8%26sa%3DX%26ei%3D6rGxUNHII-nM2AWC4YF4%26ved%3D0CDQQzwIwAA#search=%22related%3AZxeqpMkkQygJ%3Ascholar.google.com%2F%22 |archive-date=2014-05-06 |url-status=live }}</ref> This is considered the [[territoriality principle]] of the act.<ref name="McGraw-Hill Education"/>

The FCPA's prohibition on bribes extends beyond simple monetary payments. The act defines bribes as "anything of value," which encompasses a wide range of tangible and intangible benefits. This can include gifts, travel expenses, entertainment, job/internship offers, scholarships, and charitable donations.<ref>{{Cite web |access-date=April 26, 2024 |title=Foreign Corrupt Practices Act - FAQs |url=https://ogc.princeton.edu/sites/g/files/toruqf2461/files/media/508_fcpa_faqs.pdf#:~:text=How%20is%20%E2%80%9Canything%20of%20value,relatives%20of%20a%20foreign%20official. |website=Princeton University Office of the General Counsel}}</ref> For example, in 2012, [[Eli Lilly and Company]], a U.S. pharmaceutical firm, settled an FCPA case involving improper payments made through its subsidiaries to foreign officials in Russia, Brazil, China, and Poland. The bribes included gifts, travel, and entertainment expenses, such as spa treatments, jewelry, and a trip to the [[2006 FIFA World Cup|2006 World Cup]]. Lilly agreed to pay disgorgement of $13,955,196, prejudgment interest of $6,743,538, and a penalty of $8.7 million for a total payment of $29,398,734.<ref>{{Cite web |title=SEC.gov {{!}} SEC Charges Eli Lilly and Company with FCPA Violations |url=https://www.sec.gov/news/press-release/2012-2012-273htm |access-date=2024-04-26 |website=www.sec.gov}}</ref>

The FCPA is subject to ongoing scholarly and congressional debate regarding its effects on international commerce. Scholars have found that its enforcement discourages U.S. firms from investing in foreign markets.<ref name=":0">{{Cite journal|url = http://muse.union.edu/lamacroworkshop2015/files/2015/01/11-Graham-and-Stroup-2015-AEL-forthcoming.pdf|title = Does Anti-bribery Enforcement Deter Foreign Investment? |author=Graham, Bradley |author2=Stroup, Caleb |s2cid = 218640318|date = 2016|journal = Applied Economics Letters|volume = 23|pages = 63–67|doi = 10.1080/13504851.2015.1049333|archive-url = https://web.archive.org/web/20160211143937/http://muse.union.edu/lamacroworkshop2015/files/2015/01/11-Graham-and-Stroup-2015-AEL-forthcoming.pdf|archive-date = 2016-02-11|url-status = live}}</ref> This coincides with the well established observation that companies engaging in [[mergers and acquisitions]] in emerging markets face a uniquely increased level of regulatory and corruption risk.<ref>{{cite journal|url=https://www.transactionadvisors.com/insights/tackling-corruption-and-regulatory-risk-ma-transactions|title=Tackling Corruption and Regulatory Risk in M&A Transactions|last1=Brooks|first1=Robin|last2=Stacey|first2=Oliver|journal=Transaction Advisors|last3=Jarman|first3=Daniel|issn=2329-9134|access-date=2015-11-03|archive-url=https://web.archive.org/web/20151018015812/https://www.transactionadvisors.com/insights/tackling-corruption-and-regulatory-risk-ma-transactions|archive-date=2015-10-18|url-status=live}}</ref>

===Persons subject to the FCPA===

; Issuers
: The term "issuer" is used to describe any U.S. or foreign corporation that has a class of securities registered, or that is required to file reports under the Securities and Exchange Act of 1934 ([https://www.law.cornell.edu/uscode/text/15/78dd-1 15 U.S.C. § 78dd-1])

; Domestic concerns
: Refers to any individual who is a citizen, national, or resident of the U.S. and any business entity organized under the laws of the U.S. or one of its states, or having its principal place of business in the U.S. ([https://www.law.cornell.edu/uscode/text/15/78dd-2 15 U.S.C. § 78dd-2])

; Any legal person
: Covers both enterprises and individuals ([https://www.law.cornell.edu/uscode/text/15/78dd-3 15 U.S.C. § 78dd-3])