The FCPA and the Anti-Corruption Laws of the PRC

This is an introduction to anti-corruption law and how it is applied in practice in the U.S.A and China.

Intro to U.S. Anti-bribery Conventions / Laws

  • Foreign Corrupt Practices Act – 1977
  • Inter-American Convention Against Corruption (34 member of Organization of American States + Cuba) – 1996
  • Organization of Economic Cooperation and Development – 1997
  • Council of Europe – 1999
  • U.N. Convention Against Corruption (passed but not ratified) - 2003
  • 28 US states have anti-commercial bribery statutes

* The conventions are inconsistent in substance and application

History of the FCPA

  • Pre-1977 bribing foreign officials common and often a permitted business expense
  • In 1977 Congress passed 15 U.S.C. §78dd-1. et seq
  • Generally recognized that bribery threatens the proper functioning of democratic institutions, market economies and leads to misallocation of resources and jeopardizes relations among nations

Since 1995 many countries (including China) have domestic laws
prohibiting improper inducements to government officials

What is the FCPA?

Two main components:

- Anti-bribery Provisions

FCPA makes it a crime to offer anything of value (no minimum) to foreign government officials for the purpose of corruptly influencing an official decision in order to obtain or retain business or improper advantage for oneself or another person

- Recordkeeping and Accounting Provisions

Also requires companies with stock traded on a U.S. exchange (Issuers) to keep accurate books and records and maintain an adequate system of internal controls over domestic and foreign operations

This training will focus on the anti-bribery provisions

However, all business expenses must be properly accounted for this includes business expenses reimbursements

Click to download TransAsia's guide: "The FCPA and the Anti-Corruption Laws of the PRC".

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