Foreign Corrupt Practices Act is generally to prohibit the bribes which are given to foreign officers for assisting in retaining business. This act is suitable all over the country for prohibiting the conduct of the rules. This act mainly extends to the companies which are trading with foreign countries. They will have direct contact with the directors, officers, stockholders, employees, and the agents. The agents may be anyone like distributors, third parties, partners, consultants, and many others. This act requires business people to maintain the records correctly for their security in the business. In case, if the records are not proper then any legal action will be taken by the government officials. Mach Investigations
The company should have internal controls of all the documents and the books which will help the company to be safe. The company should also have reasonable assurances for all the transactions made in the business. The assets should also be accessed properly without any flaws. The accounts of the company must be properly checked for some time and it will guarantee that the company functions properly. The management of the company must have to do all the checks in all the areas of the company and be transparent.
The people who violate the rules of the FCPA act will be under the legal action of the government. They may be forced to be under the enforcement actions against the officers, stockholders, directors, agents for violating the accounting provisions of the act. The companies who have violated the act will have to remain loyal to the government by disgorging the asset or gains which are made illegally. This will safeguard the company or the individual from the legal punishments. If the individual or the company is caught by the office then they have to pay the interest and civil penalties.
Losing Reputation of the Company:
Bribery is considered an illegal act and people should not indulge in these activities. They should be loyal to all the officials and meet the demands of the business. There should not be any malpractices or corruption in the business. In case, if a person or the company is punished under the FCPA act then the whole reputation which has been gained by the company so far will be damaged. This will lead to the ruin of the business entirely in the upcoming days. There are lots of companies that have faced the legal issues of the act and have lost their business.
One should be very careful and loyal in the business activities. The company or the individual should not get anything of more value. The term value indicates anything which is got indirectly or directly for improving the business or to finish the task illegally with an unfair advantage. These acts are considered illegal by the government and they will take the necessary actions on the concerned persons or the company. There are many cases filed mainly on companies that deal with foreign officials for the enhancement of the company. Some companies do illegal business through banned products by giving bribes to the officials. These companies will also face legal issues and they should be punished.