Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is prohibited?

Answer options:

A payment to a foreign official to expedite the processing of a visa application.

A reasonable expenditure for travel and lodging of a foreign official to demonstrate a product.

A payment to a foreign official to influence the official to award a government construction contract.

A payment to a private foreign business owner to secure a commercial contract.

How to approach this question

FCPA bans bribes to foreign officials to get business. Grease payments for routine tasks are the exception.

Full Answer

C.A payment to a foreign official to influence the official to award a government construction contract.✓ Correct

The FCPA prohibits giving anything of value to a foreign official to influence an official act or decision to obtain or retain business. Payments for routine governmental actions (facilitating payments) and reasonable promotional expenses are exceptions.

Common mistakes

Thinking all payments to officials are banned (facilitating payments are the exception).

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