The Foreign Corrupt Practices Act (FCPA) is a U.S. law that makes it illegal to bribe foreign government officials to win or keep business. If you operate internationally, even routine business expenses can raise issues if they are meant to influence a decision. Here is how the law works in practice.
Who does the FCPA apply to?
The FCPA can apply to you even if your business activity abroad is limited. If you are a U.S. citizen, work for a U.S. company or handle transactions that pass through the United States, the law can apply.
Who counts as a foreign official?
A foreign official includes more than elected officials or government employees.
It also covers employees of companies owned or controlled by a foreign government, such as public utilities, transportation agencies or national resource companies. If government ownership exists, the law treats that contact as an “official.”
What counts as a prohibited payment?
A prohibited payment includes anything of value offered to gain an advantage. Cash is only one example. Travel, gifts, consulting fees or hiring someone connected to a decision-maker can all create risk if they tie back to winning business or speeding up approvals.
Does intent matter under the FCPA?
Intent determines whether a payment crosses the line.
If you offer something with the purpose of influencing a decision, that alone can trigger a violation, even if nothing comes from it. How you describe and justify a payment internally can matter just as much as the payment itself.
What are the recordkeeping requirements?
You must accurately record transactions and maintain clear internal controls.
If you disguise payments, leave out details or route expenses through unclear accounts, you create a separate violation. The law treats inaccurate records as a problem on their own, not just as supporting evidence of bribery.
Facing questions about a transaction?
FCPA problems do not always show up right away, and by the time questions come up, the situation can already feel serious. If you find yourself under review or investigation, getting a defense attorney involved early can help you respond the right way and avoid making things worse.