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
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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