The 1977 Foreign Corrupt Practices Act and the 1988 Ominbus Trade Bill

The Foreign Corrupt Practices Act (FCPA) of 1977 and Title V of the 1988 Omnibus Trade Bill address the issue of unlawful payments, either bribery or extoriton, made by US firms to foreign officials to gain or maintain business in foreign countries. The FCPA deals with three major issues: accounting standards, foreign corrupt practices by issuers and foreign corrupt practices by domestic concerns. Title V of the Omnibus Trade Bill contains amendments to the FCPA, including the definition of an illegal payment, higher penalties for violations and the modification of the reason-to-know standard.