The Foreign Corrupt Practices Act is a federal law enacted in 1977 which prohibits companies from paying bribes to foreign government officials and political figures for the purpose of obtaining business. There are two provisions to the Foreign Corrupt Practices Act. First, the anti-bribery provisions which are enforced by the Department of Justice and second, the accounting provisions which are enforced by the Securities and Exchange Commission (SEC).
There are three types of entities prohibited from making improper payments
Issuers, domestic concerns, foreign nationals and businesses.
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