The Foreign Corrupt Practices Act (FCPA) is not a new law, yet more and more companies are running afoul of the law. Enacted in 1977, the FCPA requires all companies under United States jurisdiction to provide accounting transparency and imposes sanctions on liable companies and individuals who engage in corrupt practices overseas.
In recent years the Unites States government has dramatically increased its efforts to enforce the law, which is jointly administered by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). According to a year-end-review released by Gibson, Dunn & Crutcher earlier this year, enforcement actions reached the second-highest level in the 34-year history of the FCPA, with a total of 48 cases.
To shed a light on how this crucial act really works, on September 17, 2012, USINDO hosted an Open Forum with Mr. Danforth Newcomb, a renowned and experienced expert on the enforcement of the FCPA. Amidst the solid attendance of many American and Indonesian companies, Mr. Newcomb presented his insights on the origin, significance, and provisions of the FCPA, as well as the effective compliance program that all companies can implement to avoid the unnecessary risk of prosecution.