Has Economic Uncertainty Expanded Reach of the Foreign Corrupt Practices Act?
Stephanie J. Meltzer and Christopher E. Tierney 08-10-2009 In general, the anti-bribery provisions of the Foreign Corrupt Practices Act of 1977, 15 U.S.C. §§78dd-1, et seq., prohibit corruptly offering or providing anything of value to “foreign officials” in order to obtain or retain business, or gain an improper business advantage. Knowledge of the FCPA and its prohibitions has become essential to those wishing to do business in foreign markets or with foreign governments. Indeed, with corporate criminal and civil fines routinely in the tens of millions of dollars, and the imposition of a record-setting aggregate fine, in December 2008, of $1.6 billion against Siemens AG,[FOOTNOTE 1] the FCPA should have the attention of multinational corporate boards and in-house counsel worldwide. Among the elements necessary to prove a violation of the FCPA is that the intended recipient of the corrupt payment is a “foreign official.” The FCPA defines a “foreign official” as: [A]ny officer or emplo
