What Kind of Payments Does the Foreign Corrupt Practices Act Prohibit?
The bribery provisions of the Act specifically prohibit payments to foreign government officials that are made in an attempt to gain or maintain business with that government. A payment or gift to a foreign corporation or to a corporate officer that is not a government official is not precluded by the Act. Likewise, token gifts to officials who have no control over whether business will be awarded or maintained do not violate the Act. Bribery by any other name, however, is still bribery, and the fact that a foreign ministry official serves as your “agent” and receives a “commission” for helping you obtain a government contract does not immunize you from the Act’s criminal sanctions. In fact, in one case, an American corporation was investigated for helping a foreign ministry official arrange for his daughter’s schooling in the United States. While this situation was ultimately resolved in favor of the corporation, it demonstrates that the Department of Justice, which enforces the bribe
Related Questions
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