What does the Foreign Corrupt Practices Act prohibit?

The Foreign Corrupt Practices Act (FCPA) specifically prohibits the payment of bribes to foreign officials in order to obtain or retain business. This legislation aims to eliminate corrupt practices in international business transactions and promotes ethical standards in conducting business overseas. By focusing on prohibiting bribery, the FCPA extends to actions by U.S. companies and foreign firms operating within the United States, ensuring that businesses engage in fair practices. The law reflects a commitment to transparency and integrity in international commerce, thereby establishing a level playing field for businesses worldwide.

The other options pertain to different issues: foreign investments could involve a range of regulations unrelated to bribery, while trade with embargoed countries focuses on restrictions that limit business activities with specific nations for political reasons. Business transactions with relatives typically fall under conflict-of-interest policies rather than international bribery laws. Therefore, the primary focus of the FCPA remains on preventing corruptive practices involving foreign officials.