Definition
Foreign Corrupt Practices Act – A U.S. federal law that prohibits bribery of foreign officials and requires accurate books/records and internal accounting controls, enforced jointly by the SEC and Department of Justice. It applies to any company with U.S.-listed securities (including ADRs) or that files reports with the SEC, regardless of where the underlying misconduct happened — so a state-owned Indonesian telecom with U.S.-listed ADS can face a parallel SEC/DOJ investigation over transactions that occurred entirely in Indonesia. Found In: Notes to Financial Statements (contingencies/legal proceedings)