A Review of Actions Being Taken in the United States to Control Questionable Corporate Payments

The actions being taken in the United States to control questionable corporate payments made to government officials of other countries, their political parties, or others to obtain business advantages were reviewed.

The payments by corporations usually were made as petty corruption to facilitate favorable action, to gain competitive advantage over others, or because of extortion by corrupt officials or their agents. The Congress of the United States has responded vigorously to these problems with a series of actions over the past 2 years, including hearings by congressional committees, passage of the International Security Assistance and Arms Export Control Act, and passage of the 1976 Tax Reform Act, which requires all U.S. companies with foreign subsidiaries to report all direct or indirect payments made to employees, officials, or agents of any other government. Former President Ford also established a Task Force on Questionable Corporate Payments Abroad, and sought priority consideration in the United Nations for the United States' proposed international agreement on questionable corporate payments. The following government agencies are in the process of conducting investigations in this area: the U.S. Securities and Exchange Commission, the Federal Trade Commission, the Internal Revenue Service, the Department of Justice, and the Department of Defense. (SC)