WASHINGTON UPI -- THE SENATE WEDNESDAY APPROVED LEGISLATIVE [ ]

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100100016-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 16, 2016
• Document Release Date: July 21, 2005
• Sequence Number: 16
• Publication Date: September 15, 1976
• Content Type: PREL

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So the bill (S..'.3664),:was passed, as
follows
S. 3664
Be, it enacted-by : the Senate' and House
of rtapnresentatives of the United States..ot
"(1)" after"(b)"'and by adding at the, end"
-of this title' and, every issuer which Is Te- -.
quired to file reports pursuant to section
"(A) make and keep books; records, and
t
r
eflec
accounts, which accurately and fairly
transactions and dispositions of the as-
th
e
sets of the issuer; and.
.!(B)., devise.,and, maintain' an' adequate
system of internal accounting, controls stif .. ~,
ficient to provide -reasonable assurances
that, "(I) transactions are executed In accord
ance with management's general or specific
authorization; : . .
"(ii) transactions are recorded as neces-
'sary (1) to permit preparation of financial
statements in conformity with generally ac-
`cepted accounting principles or any other
criteria applicable to such statements and'
(2) to maintain- accountability for assets; ?
(iii) access to assets is permitted only in
accordance with ' management's authoriza-
tion; and
(iv) the recorded accountability for assets
-is compared with the existing assets at rea-
sonable intervals :md. appropriate action .is
taken with respect to any differences.
"(3) It shall be unlawful for any person,
directly or indirectly, to falsify, or cause to
be falsified, any book, record, account, -or'
document, made, or required to be made for
any accounting purpose, of any Issuer which
has, a class of .securities registered pursuant -
to section 12 . of ,tbis title or which Is re-,
uired to file reports pursuant to section 15
sign government or- instrumentality- thereof . or'?any candidate for-foreign political office.
for the purpose of Inducing that individual--... for. the purpose -.of inducing, that individual,
"(A) to- use his influence with a,'forelgn_' ofclalorparty- .
government or. instrumentality, or ' (A) to use his or ity influence with a for-
"(B) to fait to perform his official funs cign., government or. instrumentality, or -,
tions, to assist such Issuer in obtaining or. (B) to fall'to perform his or its official
`
or directing
,
retaining business for or' with,.. functions,
business to, any person or influencing' legLv- to assist such concern "in obta.inlnfr or, re- -
Iation or?regulationii of .that'. government or talning' business for or with, directing br X t.
instrumentality:.
"(2) any foreign po111.icai party or ofricial--
,thereof or any candidate: for foreign political
.
office for the purpose of Inducing that party,
official, or candidate-
`(A) to use- Its or his influence- with a for-
eign government, or. instrumentality thereof,.
"(B) to fail to perform, )tyr arhisl ofrieial
to assist. such issuer in obtaining or`. retaining the. United, States,. or any corporation? part
business to
oint-stock company
tin
di
i
ti
g
on; -j
a
or
riershlg, assoc
j business foror with,rec
any person or. Influencing legislation or regu- business trust, 'or, unincorporated organizes-
lations of that government Or instrumental _'tion -which. Is owned or controlled by in,
ity or.- : dividuals who "are' citizens- or-nationals of
;' "(3) any. person,.. while knowing or'having :" the United' States, which has--Its principal
reason.. to know that allor?aportion.of such;._'
uch ... place-of business in. the--United- States, or
money or thing of value-will be?oiered;. given, , which. is organized under: the laws of a State
or promised-- directly or indirectly to any In- of the United States or any terr.liary,. pose ed-;
dividual who Is an official of a foreign govern- siont, or commonwealth.oL the United. States;
ment or -instrumentality'"Ithereat., or: .to. any foreign political. party or official thereof - (2) .the term Interstate commerce "means
or any candidate- for foreign political office trade, commerce;" triLt spoxtation , ar coin-
for the purpose of, Inducing: that. individual. mitnicatlon among the several Staten,' or be---
official, or party-- r=,_f twesn any-foreign country and, any Stater, ,
"(A) to use his;or its Influence with a or between any State and any place or ship
foreign government or 'instrumentality, oor
outylde thereof; and' such term includes the-:
i
l
ffi
a
c
"(B) to fail to perform his or it s- o
intrastate use of a,telephone or other inter--
functions S? state means of communication or any other
^
to assist such issuer in obtaining or retaining 'intersstate Instrumentality.
business for or with, or directing business to, .
I ..y
PAYMENTS TO, Os'Frcrhx,S' '
r- Si c_ 3. (a) It shall be unlawful for any do-.
mestlo cx.ncern, other than an Issuer which
is subject to section 30A of the Securities.
-'(d) of this title.- _ ,.,%y
!'(4). it shall be unlawful for any person,
--directly or indirectly-
"(A)--to'make, or cause to be made, a ma=
terially false or. misleading statement, or-
"(B) to omit 'te state, or cause another--.
person to, omit' to : state, -any material fact
necessary in order to make statements made,
in the light of the circumstances tinder which
,.they. were made, not misleading-to,an ac- - -
countaut in connection. with any examina-
tion or audit of an issuer which has a class
of securities registered, pursuant to section 12
of this title or which Is required to file re-
ports pursuant td section 15(d) of this title,
or in connection with any examination or au-
dit of an issuer with respect to an offering
registered or to be registered under the Se-
?. '
curities Act of 1933.".
Sec. 2.-The Securities Exchange Act of 1934.
is amended by inserting after sectiotY30 the
following new section-
!'PAYMENTS TO OFFICIALS
"Sec. 30A. It shall be unlawful for any
issuer which has a class of securities regis-
tered pursuant to section 12 of this title or
which- Is required to file reports pursuant
to section 15(d) of this title to-make use of
the mails or of any. means or instrumentality
of interstate commerce corruptly to offer,
-pay, or promise to-pay, or authorize the pay-
ment of, any money, or to offer, give, or
promise to give, or authorize the giving or,
',anything of value to--
`(1) `any person who is an official of a for-
Exchange Act of 1934. to make. use of the-':
malls or of any means- or Instrumentality af?.
Interstate commerce- corruptly to offer, pay,
(A) to use his . Influence with a'' foreign
government or instrumentality or
(B) to fail to.perform_ his official funs-'
nests to; any person or? Influencing legislation
or regulations. of ...that. govermnent. or
(b) Any person who willfully violate.- this
section shalL upon, conviction be fined not,
more than $I0,000. or imprisoned not morn
15 SEP 1976
ling business for ar with, ar directing busi-
ness to, any person-or' Influencing legs sla
tion or regulations of that. government or
instrumentality. ' : ..,
(2) any foreign-political' party or official
lthereof or any candidate for foreign political
)office for the purpose o intittcinn that party,,
l official, or candidate-
(A) to use Its ar his Influence-with a for-
eign government or inatrunxentality thereof,
or _ ,, ..
(B) to fail' - to perform. Its, or-his official
functions, :- ^.:
to assist such concern in obtaining or retain-
ing business for or with, or directing business
to, any person or influencing legislation or
regulations of that government or instru-'
mentality; or
(3) any individual, while knowing or hav-
ing reason tor know that all or a portion of
such money or thing of value will be- offered,
given, or promised directly or. indirectly to
any Irtdivldual who is an official of a foreign
government or instrumentality thereof, or to
an i n p i s art or official thereof
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94TH CONGRESS
2D SESSION
Callendar No. 973
S. 3664
[Report No-'W10311
IN TIE SENATE OF TTE UNITED STATES
JULY 2 (legislative day, JUNE 18), 1976
Mr. PnoxMiim, from the Committee on Banking, housing and Urban Affairs,
reported the following original bill: which was read twice and ordered
to be placed on the calendar
JULY 2 (legislative (1ay, JUNE 18), 1976
Reported by Mr. PizoxM1imm, without amendment
A BILL
To amend the Securities Exchange Act of 11x34 to require issuers
of securities registered purswniit to section 12 of such Act
to maintain accurate records, to prohibit certain bribes,
and for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tines of the United States of America in Congress assembled,
3 That section 13 ~b) of the Securities Exchange Act (15
4 U.S.C. 78m (b)) , is amended by inserting " (1) " after
(b) " and by adding at the end thereof the following :
(2) Every issuer which has a class of securities regis-
7 tered pursuant to section 12 of this title and every issuer
8 which is required to file reports pursuant to section 15 (d)
9 of this title shall-
II
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1 " (A) make and keep books, records, and accounts,
`? which accurately and fairly reflect the transactions and
:; dispositions of the assets of the issuer; and
t " (13) devise and maintain an adequate system of
interilrll accounting controls sufficient to provide reason-
able assurances that-
"+ " (i) transactions are executed in accordance
N601 illallagelneilt's general or specific authoriaa-
tioll ;
10 "(ii) transactions are recorded as necessary
11 (l) to permit preparation of financial statements in
12 conlforlnity with generally accepted accounting prin-
13 (tiples or any other criteria applicable to such state-
14 lilellts and (2) to maintain accountability for assets;
i) access to assets is permitted only in ac-
16 rordallece -,vitll lllanatrcment`s authorization; and
th
d
e recor
ed a countability for assets 1S
18 (nnlilare(l with the existing assets at reasonable in-
19 lerv-ais alul appropriate action is taken with respect
20 lei .Illy (liiierelu?es.
21 " (3) TI shall be unlawful for any person, directly or
22 indirectly. it) falsify, or cause to be falsified, any book, record,
23 aeccmnt,-,or document, made or required to be made for any
24 accounting purpose, of any issuer which has a class of
25 securities registered pursuant to section 12 of this title or
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3
1 which is required to file reports pursuant to section 15 (d)
2 of this title.
3 " (4) It shall be unlawful for any person, directly or
4 indirectly-
5 " (A) to make, or cause to be made, a materially
6 false or misleading statement, or
7 ~- " (B) to omit to state, or cause another person to
omit to stately i?fLCt necessary in order to
9 make statements made, in the light of the circum-
10 stances under which they were made
not misleading
11 to an accountant in connection with any examination or
12 audit of an issuer which has a class of securities regis-
13 tered pursuant to section 12 of this title or which is
14 required to file reports pursuant to section 15 (d) of
15 this title, or in connection with any examination or
audit of an issuer with respect to an offering registered
or to be registered under the Securities Act of 1933.".
SEC. 2. The Securities Exchange Act of 1934 is amended
19 by inserting after section 30 the following new section:
"PAYMENTS TO OFFICIALS
21 "SEC. 30A. It shall be unlawful for an i~ _ suer which
22 has a class of securities registered pursuant to_section 1.2_of
23 this title or which is required to file reports pursuant to see-
24 tion 15 (d) of this title to make use of the mails or of any
25 means or instrumentality of interstate commerce
corruptly
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4
1 to offer. pay, or promise to pay, or authorize the payment of,
2 any irionev. or to offer, give, or proniise to give, or authorize
,3 the wiving of, anythinig of value to-
4 " f 1) any person who is an official of a foreign
5 Lroverwnent or iiistrittileiltality thereof for the purpose
t, of iudiienig that individual---
7 " (A) to use his influence with a foreign (rov-
8 eriii ent or instru ncntalityt,or
9 (11) to fail to perform his official functions,
10 to ss iq# ucli issuer in obtaining or retaining business for
11 or Wit Ii. or direeling business to, ally person or influenc-
1.2 itig legislation or iegulations of that government or
13
iii trtuilentnlit~r ;
14 " (2) any foreign political party- or official. thereof
15 or any candidate for foreign political office for the pur-
16 fuse of inducing that party, official, or candidate-
17 " (A) to use its or his influence with a foreign
18 ;overnment or instrmnentality thereof. or
19 " (11) to fail to perform its or his official fiine-
20 Mons.
21 to esi such issuer in obtaining or retaining bu:nless
for or with. or directing business to, any person or in-
23 #ltienoin legislation or regulations of that government
24 or instnimentality; or
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" (3) any. person, while knowing or having reason
to know that all or a portion of such money or thing
of value will be offered, given, or promised directly or
indirectly to any individual who is an official of a
foreign government or instrumentality thereof, or to
any foreign political party or official thereof or any
candidate for foreign political office, for the purpose of
inducing that individual, official, or party-
(A) to use his or its influence with a foreign
government or instrumentality, or
_ " (B) to- fail to perform his or its official
functions,'
to assist such issuer in obtaining or retaining business
14 for or with, or directing business to, any person or
15 influencing legislation or regulations of that government
16 of instrumentality.".
PAYMENTS TO OFFICIALS
18 SW. :3.' (a)_ It shall be unlawful for any domestic con-
19. corn, other than an issuer which is ,object to section 30A
20 of the Securities ,Exchange Net of 1934, to make use of the
21 mails or of any means or instrumentality of interstate com-
22 merce corruptly to offer, pay, or promise to pay, or author-
23 ize the payment of, any money, or to offer, give, or promise
21 to .give or., authorize th.e giving of, anything of value to-
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1 (1) any individual who is an official of a foreign
2 governinetit or instruunentali ty thereof for the purpose
of inducing that individual-
(A) to use his influence with a foreign gov-
ernment or instrniientali ty, or
4; ( I1) to fail to perform his official functions,
7 to assist such concern in obtaining or retaining business
8 for or with, or directing business to, any person or in-
9 fluencing legislation or regulations of that government
10 or instrunieitbility,
11 (2) any foreign political party or official thereof
12 or any candidate for foreign political office for the pur-
13 pose of inducing that party, official, or candidate-
14 (A) to use its or his influence with a foreign
15 govermnent or instrumentality thereof, or
16 (11) to fail to perform its or his official func-
17 tions.
18 to assist such concern in obtaining or retaining business
19 for or with, or directing business to, any person or in-
20 f lnencing legislation or regulations of that government or
21 instruTnentality, or
22 (3) any individual, while knowing or having rea-
23 .,on to know that all or a portion of such money or
24 tiring of value will be offered, given, or promised directly
25 or indirectly to any individual who is an official of a
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1 foreign political party or official thereof or any candi-
2 date for foreign political office, :For the purpose of in-
3 ducing that individual, official or party-
4 (A) to use his or its influence with a foreign
5 government or instrumentality, or
6 (B) to fail to perform his or its official
7 functions,
8 to assist such concern in obtaining or retaining business
9 for or with, or directing business to, any person or influ-
10 encing legislation or regulations of that government or
11 instrumentality.
12 (b) Any person who willfully violates this section shall
13 upon conviction be fined not more than $10,000, or im-
14 prisoned not more than two years, or both.
15 (c) As used in this section-
16 (1) the term
`domestic concern"/ means an indi-
17 vidual who is a citizen or national of the United States,
18 or any corporation, partnership, association, joint-stock
19 company, business trust, or unincorporated organiza-
20 tion which is owned or controlled by individuals who
21 are citizens or nationals of the United States, which has
22 its principal place of business in the United States, or
23 which is organized under the laws of a State of the
24 United States or any territory, :possession, or common-
25 wealth of the United States; and
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1 (-') the tertll "interstate conuiterce" means trade,
2 eoininerre, transportation, or communication among the
:3 several States. or between airy ioi?cigti eantrtirv and any
4 State, or between any State and t iiv, place or ship ottt-
5 side thereof, and such temp inc1ludes the iiitr;tstate tine
U u a telephone or outer interstate means of rottnuuttica-
7 Lion or any other interstate instrunielttality.
X r ~ :R
M Fti
A. M F-l
ud 31
m
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