Securities Fraud in the International Arena: Unilateral vs

The US is presently seeking to regulate foreign investors who obtain and use inside information prohibited under the antifraud provisions of the 1934 Securities and Exchange Act. The US is seeking to have other countries adopt insider trading laws that harmonize with American law. The Foreign Corrupt Practices Act (FCPA) was passed in 1977 and imposes penalties on multinational companies making corrupt payments to any officer or employee of a foreign government. The US became the first country to pass a law making it illegal for its business enterprises to bribe a foreign official outside its territorial limits. The US is experiencing increased resentment from countries subjected to what they may view as another form of imperialism. However, such criticism is too extreme in scope. The US has a legitimate interest in seeking to ensure fairness in securities-related transactions.