The Foreign Corrupt Practices Act (FCPA) isThe Foreign Corrupt Practices Act (FCPA) is

The Foreign Corrupt Practices Act (FCPA) is a United States law that was passed in 1977. This law constraints individuals, as well as United States based corporations, from paying bribes to foreign officials in order to obtain a business deal. (The United States Department of Justice, 2017) The FCPA is comprised of two parts: the anti-bribery provisions, and the accounting provisions. The anti-bribery provisions forbid payments to foreign officials in order to obtain business. Under this provision, it is illegal to make a monetary bribe to a foreign official in order to gain an unfair business advantage. The accounting provisions require that the individual, or U.S. based corporation, make and keep detailed accurate records, as well as maintain a satisfactory system of internal accounting controls. This provision also prohibits businesses and individuals from knowingly falsifying their records as well as knowingly failing to carry out proper internal controls. (McGraw & Rufe, 2014)         The FCPA is enforced through the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). Both enforcement authorities have special units within their organization that focus in more on fraud. The DOJ has a unit inside of their Criminal Division’s Fraud Section, which implements both criminal and civil enforcement authority for domestic concerns pertaining to the FCPA. The SEC has civil enforcement authority of the FCPA, over companies and their employees, as well as others who are acting on the company’s behalf. The SEC’s specialized unit in comprised of attorneys, and is located in Washington, D.C. Both enforcement agencies maintain websites in order to explain the FCPA, as well as discuss enforcement issues, actions, and answer questions. The DOJ prosecutes the offences and violations. An accounting violation can result in up to 20 years in prison, while an anti-bribery offense can result in up to 5 years. These violations not only lead to possible criminal fines, but can also result in debarment of U.S. Government contracts, loss of export privileges, and even ruined company reputations. (Cassin, 2009)The FCPA affects both individuals and companies that partake in the illegal activities defined within the FCPA. Businesses and companies are held accountable for their corrupt actions, and must pay the price for breaking the law. Other than facing possible jail time, these corporations face ruined reputations, which can lead to the company losing money. A few companies that have appeared in FCPA related headlines have included Avon, Wal-Mart, and Fiat. One high-profile individual who has faced FCPA charges is Frederic Bourke, Jr., who is the owner of Dooney & Bourke, which is a luxury handbag brand. One of the biggest criminal fines from 2008 that is related to the FCPA is linked to the company Siemens.         Siemens AG is known as a global powerhouse in electronics and electrical engineering, with over 400,000 employees and a yearly revenue of over $100 billion. (Cassin, 2009) This corporation pleaded guilty in federal court to charges of FCPA Violation, and agreed to pay $1.6 billion to both American and European authorities to settle charges that the company did routinely use bribes in order to secure large public works contracts around the world. (Lichtblau & Dougherty, 2008) Siemens began to use bribes and kickbacks to foreign officials back in the mid 1990’s to secure government contracts. According to Joseph Persichini Jr., who was the head of the Washington office of the FBI in 2008, these bribes were standard operating procedures for corporate executives who saw bribery as a business advantage. (Lichtblau & Dougherty, 2008) The company was affected by the FCPA in terms of monetary payout, legal fees, and a ruined reputation. This ruined reputation also affected the shareholders of the company due to a fall in share price after the violations were made public.