foreign corrupt practices act (fcpa)
Definition
The FCPA is a US federal law that makes it illegal for American businesses and individuals to bribe foreign government officials in order to win or keep business deals overseas. The law applies to any US company, any company listed on a US stock exchange, and even foreign companies that conduct any part of their corrupt activity on US soil or through US banks. Penalties can include massive fines and even prison time for the individuals involved.
Example
If you own an import business and your overseas shipping agent hints that paying a local customs official will speed up your approvals, agreeing to that payment could put you in violation of the FCPA even though the bribe happens in another country.
Watch Out
The FCPA can hold you responsible for bribes paid by third parties like agents, distributors, or consultants acting on your behalf, so you need to vet anyone who represents your business abroad.
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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.