The Foreign Corrupt Practices Act
An Executive Summary
Recent months have seen a resurgence in interest in the Foreign Corrupt Practice Act (FCPA) and related matters as a result of enforcement activity that have yielded significant fines, penalties, and disgorgements. In one instance, a company had to pay a $700 million settlement to resolve FCPA claims brought against it (not to mention additional fines in other countries).
So far in 2022, FCPA enforcement authorities have targeted businesses involved with a variety of industries, including natural resources, financial services, waste management, healthcare, steel manufacturing, aviation, insurance, and technology. In some cases, these companies were headquartered outside the United States – a clear reminder of the extra-territorial jurisdiction that U.S. authorities continue to assert when pursuing FCPA cases.
The Biden Administration recently issued a memo that declared that the fight against corruption is a core U.S. national security interest. Also, in September, the Justice Department made revisions to its corporate criminal enforcement policies that encourage prosecutors to take a tougher approach to FCPA and other enforcement efforts against corporate defendants and to hold individual gatekeepers at those companies personally liable. As a result of the above developments, we expect to see enhanced FCPA enforcement activity in the coming months.
Our International Trade and White-Collar partner Daanish Hamid recently prepared an Executive Summary that provides an overview of the FCPA and key areas of concern. For those of you who are new to the FCPA, this summary can serve as a good starting point to plan an effective compliance strategy as you grow your international footprint. For those who are at companies that already have sophisticated FCPA compliance programs in place, the summary can be used by employees as a refresher and tool to do some quick issue spotting with respect to pending transactions and projects.
The executive summary can be accessed here: The Foreign Corrupt Practices Act | An Executive Summary
Daanish Hamid is a partner in Rimon's Washington DC office with over 20 years' experience. He advises clients on national security reviews conducted by the Committee on Foreign Investment in the United States (CFIUS) and has led several successful CFIUS filings with respect to corporate deals. Mr. Hamid also handles compliance and investigations involving the Foreign Corrupt Practices Act (FCPA), anti-money laundering laws, economic sanctions, and fraud. Read more here.
Our attorneys have extensive experience representing clients before the Committee on Foreign Investment in the United States (CFIUS) with respect to national security reviews of their M&A, PE/VC/CVC, joint venture, and real estate deals. U.S. as well as foreign companies and investors regularly seek our user-friendly guidance on navigating complex CFIUS laws and regulations, including the Foreign Investment Risk Review Modernization Act (FIRRMA) and its implementing rules.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
