International Anti-Bribery and Fair Competition Act of 1998

Bribery has always been a controversial issue, especially in the business world. Many argue that bribes are a necessary cost of doing business while others view them with distain, claiming that they are antiquated and create an unfair advantage. In the late 90’s, the problem reached a boiling point. Although laws such as the Foreign Corrupt Practices Act made bribery illegal in the United States, it still remained an international issue. Numerous skeptics claimed that violators of the act slipped through loopholes and that the law was not properly enforced. This law only applied to the United States, but bribery had become a worldwide concern. In 1998, the International Anti-Bribery and Fair Competition Act was enacted. The Act became law on November 10, 1998, however; it did not take effect until May 1, 1999.
The International Anti-Bribery and Fair Competition Act amends the Securities and Exchange Act of 1934 and the Foreign Corrupt Practices Act of 1977. The Securities Exchange Act is a United States law which regulates the trading of securities in the secondary market. The secondary market involves sales that take place after a security is originally offered by an issuer which is typically a company (Sarkar). The Foreign Corrupt Practices Act is a United States law which prohibits paying bribes to foreign officials to retain or obtain business. It also requires companies to retain accurate records and books. Companies are also required to implement a system of internal controls which provides reasonable assurances that transactions are executed and assets are accessed and accounted for in accordance with management's authorization (U.S. Securities and Exchange Commission). The Convention on Combating Bribery of Foreign Public...

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...ti-Bribery Act of 1998 Amends the Foreign Corrupt Practices Act and Implements the OECD Convention Combating Bribery of Foreign Public Officials." Simpson Thatcher (1998): 1-16. Document. 2014 February 5. .
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