Outside the United States, bribery is fairly commonplace. In fact, in some parts of the world, Maylasia for instance, bribes are expected and businesses may find it impossible to get anything done without offering them. However, what many don't know is that US citizens can be prosecuted in the US for engaging in bribes - directly or indirectly - even when they are not on US soil.
Initiating payments to foreign government officials, even if made outside of U.S. jurisdiction, could trigger severe criminal penalties under the U.S. Foreign Corrupt Practices Act (FCPA). The U.S. Foreign Corrupt Practices Act (FCPA) prohibits U.S. firms and their overseas subsidiaries from “giving high foreign government officials either money or material items of value in return for assistance in obtaining or retaining business”.
Obviously this puts US firms overseas at a distinct disadvantage compared to their foreign competitors. Therefore, the FCPA allows specific exceptions to this rule. These include:
- Payments that facilitate or expedite “routine government action”, such as granting work permits or clearing goods through customs;
- “payments that are legal under the written laws of the host country;
- “bona fide expenditures (e.g. reimbursement of travel and lodging expenses) incurred for the promotion, demonstration, or explanation of products or services of the U.S. business interest"
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