Which U.S. act prohibits executives of U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates?

Which U.S. act prohibits executives of U.S.-based companies from paying bribes to foreign government officials, political parties, or political candidates?

• A. the Path Act
• B. the Foreign Corrupt Practices Act
• C. the Bribery Act
• D. the Anti-Corruption Act

Answer: (B)

The key idea here is how the United States regulates bribery of foreign officials by domestic companies. The act in question makes it unlawful for executives of U.S.-based companies to offer or pay anything of value to foreign government officials, or to foreign political parties or their officials, with the aim of influencing official actions to obtain or retain business. This is enforced through two main pillars: the anti-bribery rule, which targets the bribery itself, and the accounting provision, which requires accurate books and internal controls to prevent disguising such payments. The reach is broad: it covers U.S. persons and their overseas subsidiaries and intermediaries, with enforcement by the DOJ and the SEC and serious penalties for violations. The other options are not U.S. statutes or do not address cross-border bribery in the same way—the Bribery Act refers to a UK law, while the others are not the established U.S. statute on this issue. So the Foreign Corrupt Practices Act is the correct one.

The key idea here is how the United States regulates bribery of foreign officials by domestic companies. The act in question makes it unlawful for executives of U.S.-based companies to offer or pay anything of value to foreign government officials, or to foreign political parties or their officials, with the aim of influencing official actions to obtain or retain business. This is enforced through two main pillars: the anti-bribery rule, which targets the bribery itself, and the accounting provision, which requires accurate books and internal controls to prevent disguising such payments. The reach is broad: it covers U.S. persons and their overseas subsidiaries and intermediaries, with enforcement by the DOJ and the SEC and serious penalties for violations. The other options are not U.S. statutes or do not address cross-border bribery in the same way—the Bribery Act refers to a UK law, while the others are not the established U.S. statute on this issue. So the Foreign Corrupt Practices Act is the correct one.