Bribery’s Demand Side: Implications of the newly enacted Foreign Extortion Prevention Act
Late last year, Congress approved the Foreign Extortion Prevention Act (“FEPA”), which will make it a federal crime for any foreign government official to demand or receive a bribe from a U.S. citizen, resident or company in exchange for taking or omitting to take official action or conferring any improper business-related advantage. Part of the National Defense Authorization Act, this legislation substantially expands U.S. enforcement authority with respect to foreign bribery and aligns with the Biden Administration’s elevation of anti-corruption enforcement to a national security priority.
The creation of a criminal offense specifically targeting demands from foreign officials for bribes could be the harbinger of new anti-corruption enforcement activity, reaching beyond the usual targets of Foreign Corrupt Practices Act (“FCPA”) cases. It remains to be seen, however, whether the Department of Justice will use this new authority to investigate and prosecute cases that otherwise would not have been brought or instead will use FEPA largely to enhance their enforcement of the FCPA. FEPA’s enforcement also could encounter significant jurisdictional challenges, including foreign officials charged under the statute who may remain beyond the reach of U.S. authorities and never see the inside of a U.S. courtroom. From a political perspective, charging foreign officials also may invite diplomatic repercussions and even spark international conflict.
Join us for an in-depth discussion of this new legislation and its implications.
Featuring:
- Peter E. Deegan, Partner, Taft Stettinius & Hollister
- Robert K. McBride, Partner, Taft Stettinius & Hollister
- Moderator: Dr. Sohan Dasgupta, Partner, Taft Stettinius & Hollister LLP
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