Tony Billings and Cedric Knott accepted for publication in Journal of Forensic and Investigative Accounting
Mike Ilitch School of Business Professor of Accounting Tony Billings and Adjunct Faculty Member Cedric Knott have had an article accepted for publication in the Journal of Forensic and Investigative Accounting, which publishes creative and innovative studies and research that highlight academic forensic accounting, fraud and litigation service issues.
The article is titled “Is the Foreign Corrupt Practices Act Meeting Its Goal of Reducing Bribery Crimes of American Businesses Abroad?”
International bribery payments by U.S. individuals and multinational corporate entities have long been a problem for the U.S. government. As such, in December 1977, the United States enacted the Foreign Corrupt Practices Act (FCPA, 15 U.S.C. § 78dd-1, et seq.) to prohibit U.S. individuals and businesses from bribing foreign officials, including entities, for personal or business gain. The Act applies to both domestic and foreign government practices in discouraging bribes from government officials. However, the lengthy process of investigations results in high costs on the targets of FCPA violations, the U.S. Department of Justice (DOJ), and the Securities and Exchange and Commission (SEC). Further, individual violators of these laws can face stiff fines and possibly jail time. This article reviews essential provisions of the FCPA for informing financial professionals involved in foreign commerce of how the Act is enforced to help in avoiding running afoul of the FCPA.