Kara Sears
Bribery has a devastating impact on the real world and is not a victimless crime. The Foreign Corrupt Practices Act of 1977 (FCPA) is a federal law in the United States that prohibits its citizens and entities from bribing foreign government officials to benefit their business interests. The US and Switzerland are the only two countries actively enforcing their anti-bribery laws.
| Characteristics | Values |
|---|---|
| Number of countries actively enforcing anti-bribery laws | 2 (Switzerland and the U.S.) |
| Number of countries with moderate enforcement | 7 |
| Number of countries with limited or no enforcement | 38 |
| Number of countries reviewed in the Transparency International report | 47 |
| Number of countries not signatories to the OECD Anti-Bribery Convention | 3 (China, India, and Singapore) |
| Number of countries with anti-bribery laws that apply to foreign companies and individuals engaging in corrupt practices within their borders | At least 1 (The U.S.) |
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What You'll Learn
The US is one of two countries enforcing anti-bribery laws
Bribery has a devastating impact on the real world, and it is certainly not a victimless crime. In 2022, Transparency International, in partnership with its global network, released its latest progress report, "Exporting Corruption 2022", which assessed the enforcement of the US Foreign Corrupt Practices Act (FCPA) and the foreign bribery laws of other exporting countries. The report reviewed investigations, enforcement actions, and other data from 47 exporting countries to determine how well they were policing anti-bribery rules and addressing cross-border corruption.
The report found that only two countries, the US and Switzerland, actively enforce their foreign anti-bribery laws. This is a decline from the four countries that were actively enforcing these laws in the 2020 report. Seven countries were found to have moderate enforcement, while 38 countries conducted limited or virtually no enforcement of their foreign bribery laws.
The US has taken steps to combat bribery and corruption, both domestically and internationally. The FCPA makes it unlawful for US individuals or companies to offer, pay, or promise to pay money or anything of value to any foreign official to obtain or retain business. The FCPA also covers foreign individuals or companies that commit bribery within US territory or are listed on US stock exchanges. In addition, the US has proposed the Foreign Extortion Prevention Act, which would extend anti-bribery laws to foreign officials who demand or accept bribes, sending a strong message about the country's commitment to addressing corruption.
Despite these efforts, there is still much to be done to strengthen anti-bribery enforcement in the US and globally. The US should ensure proper funding for law enforcement, enhance protections for whistleblowers, improve cross-border information sharing, and encourage the adoption of improved international standards. While the US is a leader in foreign anti-bribery enforcement, the lack of competition from other countries highlights the need for a more unified global effort to combat corruption.
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The Foreign Corrupt Practices Act of 1977
While there is no exact information on the number of countries with anti-bribery laws, the US is one of only two countries that actively enforce them. The US's anti-bribery legislation is called the Foreign Corrupt Practices Act (FCPA) of 1977. It was signed into law by President Jimmy Carter on December 19, 1977, in response to a series of scandals involving substantial bribes paid to foreign officials by US companies to secure business advantages overseas. This period highlighted a serious need for legislative action to address these corrupt practices.
The FCPA prohibits US companies and individuals from bribing foreign officials to obtain or keep business. It also applies to foreign firms and individuals who engage in corrupt practices while in the United States, even if the bribery occurs outside the country. The Act covers any person with a certain degree of connection to the United States who engages in corrupt practices abroad, as well as American citizens, nationals, and residents acting in furtherance of a foreign corrupt practice, whether or not they are physically in the US. The FCPA also extends to foreign companies and individuals who take any action in furtherance of such a corrupt payment while in the United States.
The core aim of the FCPA is to prohibit companies and their officers from influencing foreign officials with any personal payments or rewards. It was amended in 1988 to raise the standard of proof for a finding of bribery and to introduce a "knowing" standard, encompassing "conscious disregard" and "willful blindness." The amendments also clarified that certain types of payments or gifts that are bona fide, reasonable, and lawful under the laws of the foreign country do not constitute an offence.
The FCPA is enforced by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). Several firms have been the subject of criminal and civil enforcement actions, resulting in large fines and penalties. For example, in 2013, French oil and gas company Total S.A. agreed to pay a $245.2 million penalty to settle FCPA charges related to bribes paid to an Iranian official to obtain concessions.
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The International Organization for Standardization's anti-bribery management system
While it is unclear how many countries have anti-bribery laws, a report by Transparency International found that only two countries—the US and Switzerland—actively enforce their foreign anti-bribery laws. Seven countries were found to have moderate enforcement, and 38 countries conducted limited or virtually no enforcement of their foreign bribery laws.
To combat the pervasive issue of bribery, which undermines societal, economic, and political structures, the International Organization for Standardization (ISO) has developed ISO 37001:2025, a standard for anti-bribery management systems. This standard provides a systematic approach to help organizations establish, implement, maintain, and improve their anti-bribery practices.
ISO 37001:2025 offers guidance and requirements for organizations to prevent, detect, and respond to bribery, as well as comply with relevant anti-bribery laws. It covers various forms of bribery, including direct and indirect bribery, within the public, private, and not-for-profit sectors. The standard can be implemented as a standalone system or integrated into existing management frameworks, such as quality, environmental, or safety systems.
The key components of ISO 37001:2025 include establishing anti-bribery policies, due diligence procedures, financial and non-financial controls, training programs, and monitoring, reporting, and improvement mechanisms. By implementing this standard, organizations can foster a culture of integrity, transparency, and trust, while also ensuring legal compliance and mitigating the risks associated with bribery and corruption.
The development of ISO 37001:2025 involved collaboration with various organizations, including the International Chamber of Commerce, the Organization for Economic Co-operation and Development (OECD), Transparency International, and international regulators such as the US Department of Justice and the UK Ministry of Justice. This standard is a powerful tool for organizations to combat bribery and contribute to a more ethical and just global business environment.
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OECD Anti-Bribery Convention
While it is unclear exactly how many countries have anti-bribery laws, the OECD Anti-Bribery Convention, established in 1997, has been signed and ratified by 38 member countries of the OECD and 8 non-member countries as of 2018. This convention, officially called the "Convention on Combating Bribery of Foreign Public Officials in International Business Transactions", is a legally binding international agreement that requires signatory countries to criminalize the bribery of foreign public officials. The OECD itself does not have the authority to implement the convention, but it does monitor the implementation by participating countries.
The convention's primary goal is to create a level playing field in the international business environment by focusing on the supply side of bribery. It aims to do this by criminalizing acts of offering or giving bribes to foreign public officials by companies or individuals. The key elements of the commitments made by signatory countries include creating a framework to hold companies responsible for foreign bribery, establishing dissuasive sanctions, and providing an effective basis for jurisdiction to combat bribery.
The OECD's monitoring process consists of four phases. The first phase involves reviewing the legislation implementing the conventions in the member country and evaluating the adequacy of the laws. The second phase assesses the effectiveness of the legislation's application, while the third phase evaluates the enforcement of the convention and any follow-up recommendations from the second phase. The fourth and final phase is a tailored review specific to the needs of the adherent country, and at the end of each phase, a public report is prepared by the Working Group on Bribery.
Despite the existence of the convention, only two countries, the U.S. and Switzerland, actively enforce their foreign anti-bribery laws as of 2022. Seven countries were found to have moderate enforcement, while 38 countries conducted limited or virtually no enforcement of their foreign bribery laws. This lack of enforcement has led to calls for stronger legislation and international cooperation to combat bribery and transnational corruption effectively.
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Compliance laws and anti-bribery risk management
To navigate the complex global regulatory environment, organisations must go beyond formal compliance and foster a culture of integrity and accountability. This involves committed leadership, embedded ethical values, and proactive risk and compliance systems. Compliance professionals need to build systems that prevent misconduct, detect issues early, and respond transparently. Understanding the nuances of ABAC is essential for safeguarding organisations from fines, reputation damage, and regulatory breaches.
The regulatory landscape varies across countries, and what is permitted under one country's laws may violate another's. For example, the US Foreign Corrupt Practices Act (FCPA) defines "foreign official" broadly, encompassing employees of foreign governments and state-owned enterprises, while the UK Bribery Act may have differing standards. Multinational corporations must therefore adopt "gold standard" policies that meet the most stringent global requirements to ensure compliance across jurisdictions.
To aid compliance efforts, organisations can utilise resources such as Baker McKenzie's Global Anti-Corruption Risk Map and guidance documents like the FCPA Resource Guide, the DOJ's Guidance Concerning the Evaluation of Corporate Compliance Programs, and the UK Ministry of Justice's Bribery Act 2010 Guidance. These tools provide practical insights and help manage compliance and risk management concerns across various countries' regulations.
Additionally, non-profit organisations like Transparency International play a crucial role in monitoring and reporting on enforcement of anti-bribery laws. According to their findings, the US and Switzerland are the only two countries actively enforcing their foreign anti-bribery laws, with a recent decline in enforcement in the US. Transparency International also advocates for legislative changes, such as the Foreign Extortion Prevention Act in the US, to strengthen anti-bribery measures and combat transnational corruption.
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Frequently asked questions
All countries have anti-bribery laws, but as of 2022, only two countries—the U.S. and Switzerland—actively enforce them.
The Foreign Corrupt Practices Act of 1977 (FCPA) is a federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.
The FCPA's anti-bribery provisions aim to increase investor confidence and allow investors to judge a company's governing board by its ethical standards and compliance with the FCPA.
