CFE – Law — Question 26

Which of the following situations would constitute a violation of the U.S. Foreign Corrupt Practices Act (FCPA)?

Answer options

• A. A private U.S. company pays a $2,000 foreign corporation fee that is required in order to do business within the country.
• B. A private U.S. company transfers $100,000 to the sole proprietor of a Brazilian company to influence the award of a commercial imports contract.
• C. A private UK company transfers $25,000 to a Chilean public official to influence the award of lucrative overseas contracts.
• D. A private U.S. company transfers $45,000 to a foreign official to influence the award of a public construction contract.

Correct answer: C

Explanation

Option C is correct because it involves a private UK company bribing a foreign public official, which violates the FCPA as it applies to U.S. citizens and companies regardless of where the bribery occurs. Options A and B do not violate the FCPA as they involve payments that are not intended to influence foreign officials. Option D, while it involves a U.S. company and a foreign official, does not specify that it is to influence a public contract, which could be compliant depending on context.