Question

The Foreign Corrupt Practices Act focuses on disclosure, which requires corporations to fully reveal any and all transactions conducted with foreign officials and politicians, in line with the Securities and Exchange Commission provisions.
True or False

Answer 1

Answer:

True.

Explanation:

The Foreign Corrupt Practices Act (FCPA) was passed in 1977 and forbids U.S. firms and individuals to pay bribes to foreign officials in advancement of a business deal. The act is applicable to actions that takes place any where in the world with a major aim to discourage abuses of power. It was approved inorder to make it unlawful for certain classes of people and bodies to make payments to foreign government officials to assist in obtaining or retaining business. It also outlines the required accounting transparency guidelines. Record keeping (with accuracy) of assets is very important to provide reasonable assurances that transactions are executed and assets are accessed so as to so as to ensure only proprely authorized dealings are executed. The  Exchange Commission as well as Department of Justice hold a joint responsibility to enforce the FCPA. Officers, directors, stockholders, employees, and agents are subject to a fine of up to $250,000 per violation and imprisonment for up to five years in the case of violation of the act.