Page 5 - U.S. FOREIGN CORRUPT PRACTICES ACT

A Resource Guide to the U.S. Foreign Corrupt Practices Act. Second Edition.

CONTENTS

Chapter 1: INTRODUCTION ...................................................................1

The Costs of Corruption .........................................................................................................1
Historical Background ...........................................................................................................2
National Landscape: Interagency Efforts ....................................................................................3
Department of Justice .................................................................................................................3
Securities and Exchange Commission .............................................................................................4
Law Enforcement Partners ...........................................................................................................5
Departments of Commerce and State ...............................................................................................5
International Landscape: Global Anti-Corruption Efforts ................................................................6
OECD Working Group on Bribery and the Anti-Bribery Convention ..........................................................7
U.N. Convention Against Corruption ...............................................................................................7
Other Anti-Corruption Conventions ................................................................................................8

Chapter 2: THE FCPA: ANTI-BRIBERY PROVISIONS .....................................9
Who Is Covered by the Anti-Bribery Provisions? ...........................................................................9
Issuers—15 U.S.C. § 78dd-1 .........................................................................................................9
Domestic Concerns—15 U.S.C. § 78dd-2 ........................................................................................10
Territorial Jurisdiction—15 U.S.C. § 78dd-3 .....................................................................................10
What Jurisdictional Conduct Triggers the Anti-Bribery Provisions? ...................................................10
What Is Covered? .................................................................................................................11
What Does “Corruptly” Mean? ...............................................................................................13

What Does “Willfully” Mean and When Does It Apply? ..................................................................13
What Does “Anything of Value” Mean? .....................................................................................14
Cash ....................................................................................................................................14
Gifts, Travel, Entertainment, and Other Things of Value .....................................................................14
Charitable Contributions ............................................................................................................16
Who Is a Foreign Official? .....................................................................................................19
Department, Agency, or Instrumentality of a Foreign Government .........................................................20
Public International Organizations ................................................................................................21
How Are Payments to Third Parties Treated? .............................................................................22
What Affirmative Defenses Are Available? .................................................................................23
The Local Law Defense .............................................................................................................24
Reasonable and Bona Fide Expenditures .........................................................................................24
What Are Facilitating or Expediting Payments? ...........................................................................25
Does the FCPA Apply to Cases of Extortion or Duress? ...................................................................27

Principles of Corporate Liability for Anti-Bribery Violations ...........................................................28
Parent-Subsidiary Liability .........................................................................................................28
Successor Liability ...................................................................................................................29