U.S. Congress Passes Bill to Combat Transnational Corruption

On October 21, 1998, Congress passed legislation (S 2375) approving the OECD Convention on the Bribery of Foreign Public Officials. The law will amend the Foreign Corrupt Practices Act (FCPA) , which the U.S. initially enacted in 1976. President Clinton announced he would sign the bill immediately. The new law extends the FCPA to non-U.S. citizens, foreign corporations, and international organizations. The U.S. action will make it likely that the OECD Convention will take effect in the near future, as the provisions for taking effect depend on ratification by the majority of the largest countries, of which the U.S. was the key. As the Convention comes into force, the number of prosecutions for transnational corruption and due diligence to prevent such corruption, will gain in importance.