What US federal law prohibits bribery of foreign officials by companies?

The U.S. federal law that prohibits companies from bribing foreign officials is the Foreign Corrupt Practices Act.

Congress enacted the FCPA in 1977 after investigations uncovered widespread corporate payments to overseas officials. Its anti-bribery provisions generally prohibit offering anything of value to a foreign official to obtain or retain business. The law is enforced primarily by the Department of Justice and the Securities and Exchange Commission.

A frequent mix-up is that the FCPA is not only an anti-bribery statute. Its accounting provisions require covered public companies to keep accurate books and records and maintain internal accounting controls. Those rules can create liability even when a payment does not satisfy every element of the anti-bribery provisions.

The statute has exceptions and defenses, including limited treatment for facilitating payments for routine governmental actions and legitimate, documented expenses. Amendments in 1988 and 1998 broadened and clarified parts of the law, including its international reach.