is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.

[1] The FCPA is applicable worldwide and extends specifically to publicly traded companies and their personnel, including officers, directors, employees, shareholders, and agents.

[3] The FCPA is jointly enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), which apply criminal and civil penalties respectively.

[9] 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.

[13] 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.

[6] 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.

These disclosures, driven by Securities and Exchange Commission (SEC) enforcement actions and high-profile public hearings by the Church Subcommittee on Multinational Corporations, made headlines for months causing serious problems for foreign leaders important to the United States.

Some of the most sensational disclosures involved corrupt payments by Northrop, Lockheed, United Brands, Gulf Oil, and Mobil in Saudi Arabia, Japan, Honduras, Korea, Italy, and the Netherlands.

[16] Investigations by the SEC in the mid-1970s revealed that over 400 U.S. companies admitted making questionable or illegal payments in excess of $300 million to foreign government officials, politicians, and political parties.

Investigations revealed that President Richard Nixon's reelection campaign, and other corporate entities, utilized funds for illicit purposes, including international bribery.

This series of events not only led to President Nixon's resignation but also propelled a national and legislative push towards greater transparency and ethics in both domestic and international business dealings.

[19][20] In response to these high-profile revelations, Congress enacted the FCPA to bring a halt to the bribery of foreign officials and to restore public confidence in the integrity of the American business system.

It set a standard for moral leadership and integrity in international commerce, underscoring the importance of honest business practices in fostering stable and fair global markets.

[23] This meant that individuals and companies could be held liable for corrupt practices if they purposefully ignored the facts or circumstances that would lead a reasonable person to conclude that bribery was likely to occur.

[24][25] The second amendment to the FCPA, known as the International Anti-Bribery Act of 1998, was a significant development aimed at enhancing the United States' commitment to combating global corruption.

[28] The FCPA dominated international anti-corruption enforcement from its introduction until c. 2010 when other countries began introducing broader and more robust legislation, notably the United Kingdom Bribery Act 2010.

The Act not only led to heightened awareness and enforcement of anti-corruption measures in the United States but also encouraged other nations to adopt similar laws,[33] fostering a more coordinated international approach to combating bribery and corruption.FCPA and other anti corruption laws also provided companies with increased investor confidence,[34] allowing them to judge a companies' governing board by how ethically sound and compliant to FCPA they are and whether or not they deal and run their business in good faith.

There are now certifications and dedicated courses that provide students and up and coming business professionals with the necessary knowledge needed to avoid and terminate possible corruption within companies and foreign markets.

In 2019, the former head of Alstom's subsidiary in Indonesia was sentenced to 15 months in prison for his role in a bribery scheme to secure a $118 million power plant contract.

[47] Enforcement of the FCPA continues to improve, allowing for more companies to be held accountable and scrutinized for deals that they make within markets that are known for having a high threat of corruption and bribery.

[49] A White House official claimed that American companies were damaged by “over-enforcement” of FCPA because “they are prohibited from engaging in practices common among international competitors, creating an uneven playing field".

[50] In response, Gary Kalman, executive director of Transparency International US, warned that Trump's actions “diminishes – and could pave the way for completely eliminating – the crown jewel in the US’s fight against global corruption”.

While an increasing number of corporations are taking additional steps to protect their reputation and reduce their exposure by employing the services of due diligence companies tasked with vetting third party intermediaries and identifying easily overlooked government officials embedded in otherwise privately held foreign firms.

[58] This position was further confirmed by the DOJ in a 2014 opinion stating that pre-acquisition conduct by a foreign target company without a jurisdictional nexus to the U.S. would not be subject to FCPA enforcement.

Between 1995 and 2004, the joint venture won four contracts in Nigeria worth more than US$6 billion, as a direct result of having paid US$51 million to Marubeni to be used to bribe Nigerian government officials.

The charges involved bribery and corruption in various countries, including Indonesia, Egypt, Saudi Arabia, and others As part of the settlement, Alstom agreed to pay a total of $772 million in fines.

[73] The SEC FCPA charges involved Goodyear subsidiaries in Kenya and Angola for allegedly paying bribes to government and private-sector workers in exchange for sales in each country.

The charges involve allegations of paying bribes to government officials in Uzbekistan to secure business advantages and obtain operating licenses in the country's telecommunications sector.

[91] In June 2015, Joseph Sigelman, American businessman and former CEO of OfficeTiger, pleaded guilty to FCPA violations as part of a plea agreement with the DOJ.

These payments are made to accelerate or secure routine government acts, such as acquiring permits, processing visas, or providing police protection.