The Foreign Corrupt Practices Act: Overview

by Practical Law Commercial Transactions, based on the original version by R. Christopher Cook and Kevin M. Comeau, Jones Day LLP

A Practice Note that provides an overview of the Foreign Corrupt Practices Act (FCPA), addressing the significant legal and economic risks that corruption poses to corporations operating globally. It details the FCPA's anti-bribery provisions enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), the elements of a violation, the scope of persons covered by the law, and penalties for violations. Amid shifting governmental priorities, this resource offers practical guidance on recognizing "red flags" for potential violations and understanding the DOJ's enforcement approach. This Practice Note also explores the exceptions and affirmative defenses available under the FCPA, the hallmarks of an effective corporate compliance program, and key considerations for companies deciding whether to self-disclose potential violations, including the DOJ's Corporate Enforcement and Voluntary Self-Disclosure Policy.