The FCPA

Fraud is a global problem with no geographic boundaries. While there are many differences in laws and practices from country to country, the biggest challenge to becoming a true citizen of the world is understanding, and appreciating, cultural differences. Students are encouraged to study abroad during their college years to develop global perspectives. Studying the U.S. Foreign Corrupt Practices Act (FCPA) and its effect on business helps students and faculty develop global points of view.

The U.S. Securities and Exchange Commission (SEC) enforces the FCPA, which prohibits the bribing of foreign officials for the purposes of obtaining government contracts and other business. With FCPA violations continuing to be a hot topic for the SEC, it’s a good time to discuss the act and its implications in more detail with students.

In 2016, we saw 26 SEC enforcement actions related to FCPA violations — the largest number ever in one year. Five enforcement actions had been resolved this year so far.

When we study these FCPA cases we learn more about the act’s application. The cases also:

FCPA’s background