Current Developments Regarding the Foreign Corrupt Practices Act

Increased regulatory scrutiny came in the aftermath of the financial scandals of the early 2000s, notably Enron and WorldCom. In addition to ushering in the Sarbanes-Oxley Act, an old law, the Foreign Corrupt Practices Act (FCPA) continues to receive attention. The FCPA was originally implemented over 30 years ago. In recent years, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have increased their investigation and prosecution of companies and individuals for violation of the FCPA, most recently with an increased focus on individuals. This increased scrutiny resulted from the tension between the ever increasing global economy, even in remote and developing countries of the world, and a US based law, enforced by US regulatory bodies but applied in environments with different values and ideals from those that gave rise to the legislation in the first place. This article examines the role of the FCPA in corporate governance, examines recent enforcement activities by the DOJ and SEC, the law’s impact on US companies, and actions taken by other countries around the world to respond to this issue