fcpa
Definition
The FCPA is a U.S. federal law that makes it illegal for American businesses and their employees to bribe foreign government officials in order to win or keep business deals abroad. The law applies to any company that operates in the U.S. or trades on U.S. stock exchanges, even if the bribery happens entirely in another country. Penalties can include massive fines and prison time for individuals involved.
Example
If your company pays a government inspector in Mexico to approve your facility and skip the normal review process, that payment would likely violate the FCPA even though the entire transaction happened outside the United States.
Watch Out
Even small gifts, travel expenses, or entertainment paid to foreign officials can trigger an FCPA violation, so always check with a lawyer before offering anything of value to a government worker in another country.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.