IADA Broker Practice Exam

The main idea behind the FCPA is to curb bribery of foreign officials to win or keep business. It makes it illegal for U.S. persons and companies (and their agents) to offer, promise, or pay money or anything of value to a foreign official to influence an official action in order to obtain or retain business. It also includes requirements to keep accurate books and strong internal controls so transactions aren’t misrepresented. That combination is why the option describing prohibiting bribes to foreign officials to assist in obtaining or retaining business is the correct choice. The other statements miss the point: the act isn’t simply about accounting irregularities, it isn’t a blanket ban on gifts of any size, and it certainly isn’t about permitting preferential treatment for foreign officials.