What does the Foreign Corrupt Practices Act mean to US investors?
The Foreign Corrupt Practices Act, or FCPA, is a federal law prohibiting U.S companies from bribing foreign government officials for business contracts or similar motives.
American firms need to be aware of their interactions with entities partially owned by foreign governments. Vietnam, China, and other countries throughout Asia have a high number of partially owned stated enterprises. Under FCPA, the American government could rule that employees or officials working for these entities could potentially fall under the scope of government officials, putting companies at risk of soliciting illegally to individuals or entities unknowingly under FCPA.
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