Foreign Corrupt Practices Act

The Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. § 78dd-1, et seq.) is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests. The anti-bribery provisions of the FCPA have applied to all U.S. persons and certain foreign issuers of securities. Following amendments made in 1998, the Act also applies to foreign firms and persons who, either directly or through intermediaries, help facilitate or carry out corrupt payments in U.S. territory. Pursuant to its anti-bribery purpose, the FCPA amends the Securities Exchange Act of 1934 to require all companies with securities listed in the U.S. to meet certain accounting provisions, such as ensuring accurate and transparent financial records and maintaining internal accounting controls. 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. Since its passage, the FCPA has been subject to controversy and criticism, namely whether its enforcement discourages U.S. companies from investing abroad. The Act was subsequently amended in 1988 to raise the standard of proof for a finding of bribery. In a 2025 survey of economists, there was overwhelming agreement among economists that ending enforcement of the act would increase global levels of bribery and corruption and none of the surveyed economists held that it would increase the long-term profits and competitiveness of US businesses. On February 10, 2025, President Trump paused enforcement of the FCPA, leading to a boost in the stock value of companies historically linked to corrupt practices. The pause was lifted in a June 2025 memorandum under new guidelines.