Question

1. What is the maximum penalty under the FCPA?

2.In a paragraph, tell me what are indicators that an individual or organization may have violated the FCPA.

Answer 1

Ans 1

The Foreign Corrupt Practices Act (FCPA) is started by United States law in 1977 which states that bribes given for business deals to foreign officials by various individuals and firms of the country is a crime.

The maximum penalty under the FCPA is- In case of any bribery violations by any enterprise there is a criminal penalty of $2,000,000 per violation. And in case of violation by individual there is a criminal penalty of  $250,000 along with five years of imprisonment.

But there is a civil penalty of $16,000 for both individual and enterprise for any bribery violation.

Ans 2

Today the competition in the business world is growing at a fast rate . Every individual and enterprise doing various kinds of business want it to be done in less time. So they find various means to purchase the material required or any other business work which is then done in no time by giving some extra funds. The various indicators that an individual or organisation have violated the FCPA are -

● false invoices

● miscelaneous accounts made to hide improper payments

● unrecorded transactions

● non-specific description of payments made

● inappropriate transactions