The Foreign Corrupt Practices Act, or FCPA, is an essential piece of federal legislation that serves to promote fair and honest business operations in foreign markets. It was initially passed in 1977, and enforces strong regulations to combat bribery and other forms of unethical business practices in activities involving any American firm or individual based in the U.S.

Foreign-based businesses that deal with the U.S. or listed on a U.S. stock exchange are also subject to the standards of the FCPA. The FCPA makes it illegal for any person or business to directly or indirectly offer, pay, promise to pay, or authorize payment of any money, gift, or other thing of value to any foreign government official, foreign political party, or candidate for public office for the purpose of influencing any act or decision of any foreign government; helping obtain or retain business; or inducing an act in violation of lawful duties, such as the bribery of a foreign public official.

Violuction of the FCPA is managed by the Securities and Exchange Commission (SEC), as well as the Department of Justice (DOJ). The SEC handles accounting, record-keeping, and disclosure, while the DOJ brings prosecutions. Both the SEC and DOJ routinely impose fines, disgorgement, and other remedial measures against companies found to have breached the FCPA. Additionally, companies, officers, agents and stockholders may face criminal prosecution and penalties.

The FCPA has significantly increased the safety and fairness of foreign business dealings, making it easier for American businesses to compete in global markets. U.S. firms were once disadvantaged when competing against companies that were engaging in bribery. Thanks to the FCPA, the playing field is now level and U.S. businesses can operate on a level playing field abroad. In addition, the FCPA has also had a strong impact on the behavior of foreign-based firms, which now may be more likely to adhere to acceptable business practices in their own countries.

In summary, the Foreign Corrupt Practices Act was passed for the enforcement of strict rules and regulations which help promote a healthy and safe business environment for U.S. firms operating in foreign markets. It prohibits companies and individuals from paying bribes to foreign officials to further business deals, and provides for strict penalties for those who violate the law. The FCPA has leveled the playing field for American businesses in overseas markets and has also helped to promote greater ethical business practices among foreign-based firms.