Financial Crime World

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Corrupt Payments to Foreign Officials Land US Companies in Hot Water

Washington D.C. - In a bid to curb the pervasive problem of corruption, the United States has taken stern measures against companies that make corrupt payments to foreign officials to secure or retain business.

The Problem of Corruption

Corruption is a global problem that has far-reaching consequences. It undermines democratic values, weakens the rule of law, and facilitates criminal activity such as human trafficking and drug trade.

The Consequences of Corruption

Paying bribes to win business ultimately undermines a company’s long-term interests and those of its investors. Corruption not only damages a company’s reputation but also increases costs, introduces uncertainty into business transactions, and can lead to legal consequences.

Enforcing Anti-Bribery Laws

The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have been working together to enforce anti-bribery laws, which prohibit individuals and businesses from making corrupt payments to foreign officials in exchange for business favors.

The Foreign Corrupt Practices Act (FCPA)

The FCPA was enacted in 1977 to combat corporate bribery and its devastating effects on businesses and economies. The act requires companies to maintain accurate books and records and devise an adequate system of internal controls to prevent corruption.

Measures to Combat FCPA Violations

Establishing the FCPA Unit

The DOJ has taken several measures to combat FCPA violations, including establishing an FCPA Unit within the Fraud Section of the Criminal Division. The unit handles all FCPA matters for the department and works jointly with U.S. Attorneys’ Offices around the country.

Providing Resources

The DOJ maintains a website dedicated to the FCPA and its enforcement, providing translations of the law in numerous languages, relevant legislative history, and selected documents from FCPA-related prosecutions and resolutions since 1977.

Compliance and Prevention

The resource guide highlights the importance of compliance with anti-bribery laws and provides guidance on how companies can prevent corruption. It also outlines the procedures for submitting a request for an opinion under the DOJ’s FCPA opinion procedure.

Submitting a Request for an Opinion

Individuals and companies are encouraged to contact the FCPA Unit at the telephone number or email address below if they wish to disclose information about potential FCPA violations.

DOJ Contact Information: