Foreign Corrupt Practices Act (FCPA)
Also known as: FCPA · Foreign bribery · Anti-bribery law · FEPA
The US law that prohibits bribing foreign officials to obtain or keep business and requires SEC-reporting companies to keep accurate books and adequate internal accounting controls.
Legal basis
15 U.S.C. §78dd-1 (anti-bribery, issuers)
The FCPA has two parts. The anti-bribery provisions make it unlawful for US issuers, US domestic concerns and others acting in US territory to corruptly offer or pay anything of value to a foreign official to influence an official act or secure business. The accounting provisions require issuers to keep books and records that accurately reflect their transactions and to maintain internal accounting controls. The Foreign Extortion Prevention Act, now at 18 U.S.C. §1352, covers the other side: it makes it a crime for a foreign official to demand or accept such a bribe.
Enforcement shifted in 2025. Executive Order 14209, signed February 10, 2025, paused new FCPA investigations for 180 days pending review. On June 9, 2025 the Deputy Attorney General issued new guidelines: new investigations need approval from the head of the Criminal Division, and priority goes to cases tied to cartels and transnational criminal organizations, conduct that deprives US companies of fair competition, national security, and serious misconduct by individuals rather than routine business practices. The statute itself did not change.
For companies operating in Latin America, the exposure sits in third parties: agents, distributors, customs brokers and local partners. Due diligence that maps who owns them, how they connect to officials and politically exposed persons, and how those links change over time is the control regulators expect to see.
Frequently asked questions
Is the FCPA still enforced?
Yes. The law is unchanged. After a 180-day pause ordered in February 2025, the Justice Department issued guidelines in June 2025 that narrow its priorities to cases involving cartels and transnational criminal organizations, harm to US companies' competitiveness, national security and serious individual misconduct.
Who does the FCPA apply to?
Companies with securities registered in the US or that file reports with the SEC, US companies and citizens, and foreign companies and persons who act in furtherance of a bribe while in US territory. The accounting provisions apply to SEC issuers.