Supposed you’ve decided to move part of your business overseas, those administrative fees could look like illegal bribes.

Let’s say that to open a manufacturing plant in Southeast Asia you need a permit from the local government. A government agent there offers to get you the permit within a week – and his commission will only be $1,000. Back off! Watch your step here. In many countries, kickbacks and bribes have long been the accepted cost of doing business. However, the Foreign Corrupt Practices Act (FCPA), enacted by Congress in l977, prohibits bribery of officials in other countries.

It’s illegal to make payments, offers or even promises of anything of value to foreign officials to obtain or retain business or get an advantage. It’s also illegal to make such payment to a third party (say the official’s wife or sibling).

For over 20 years the United States was the only country trying to prohibit bribery to foreign officials. U.S. companies complained they faced either bribing foreign officials and risking FCPA prosecution or losing the contract.