On December 22, 2023, the President signedinto law The Foreign Extortion Prevention Act (“FEPA”). This law prohibitsforeign government officials (“FGO’s”) from demanding, accepting, agreeing toreceive, anything of value in return for influencing or inducing in violationof their official duties to allow improper advantage to be given to any person.
This new act now targets the receiver ofthe bribe (demand side) whereas the Foreign Corrupt Practices Act had targetedthe provider of the bribe (supply side).
The FGO definition now also includes: seniorforeign political figures and individuals acting in official and “unofficial”capacities for, or on behalf of, governments, departments, agencies,instrumentalities, or public international organizations. It appears that theFGO expanded definition now adds non-governmental entities by including publicinternational organizations.
The penalties for the receiver of thebribes is $250,000 or up to three times the value of the bribe and up to 15years prison time.
What does this mean for corporations?
[1] https://www.congress.gov/117/bills/s3316/BILLS-117s3316es.pdf
[2] https://www.justice.gov/criminal/criminal-fraud/page/file/937501/dl?inline
[3] https://www.congress.gov/117/bills/hr4737/BILLS-117hr4737ih.pdf
On December 22, 2023, the President signedinto law The Foreign Extortion Prevention Act (“FEPA”). This law prohibitsforeign government officials (“FGO’s”) from demanding, accepting, agreeing toreceive, anything of value in return for influencing or inducing in violationof their official duties to allow improper advantage to be given to any person.
This new act now targets the receiver ofthe bribe (demand side) whereas the Foreign Corrupt Practices Act had targetedthe provider of the bribe (supply side).
The FGO definition now also includes: seniorforeign political figures and individuals acting in official and “unofficial”capacities for, or on behalf of, governments, departments, agencies,instrumentalities, or public international organizations. It appears that theFGO expanded definition now adds non-governmental entities by including publicinternational organizations.
The penalties for the receiver of thebribes is $250,000 or up to three times the value of the bribe and up to 15years prison time.
What does this mean for corporations?
[1] https://www.congress.gov/117/bills/s3316/BILLS-117s3316es.pdf
[2] https://www.justice.gov/criminal/criminal-fraud/page/file/937501/dl?inline
[3] https://www.congress.gov/117/bills/hr4737/BILLS-117hr4737ih.pdf
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