What does the Foreign Corrupt Practices Act (FCPA) prohibit?

The Foreign Corrupt Practices Act (FCPA) specifically prohibits bribing foreign officials to gain or retain business. This law aims to promote ethical conduct in international trade and investment by criminalizing the act of making payments or providing anything of value to foreign government officials in exchange for favorable business treatment or contracts. By focusing on the conduct of companies and individuals operating in foreign markets, the FCPA seeks to level the playing field and discourage corruption globally.

The other options pertain to different areas of law and ethics: insider trading relates to the illegal buying or selling of securities based on non-public information; identity theft involves stealing someone’s personal information for fraudulent purposes; and wire fraud is associated with using electronic communications to commit fraud. While all these actions are considered unethical or illegal, they fall outside the scope of the FCPA, which is solely focused on preventing bribery of foreign officials in business dealings. Thus, the emphasis on prohibiting bribery aligns directly with the intent and provisions of the FCPA.