BackPublications

Global Connection - February 2012
Foreign Corrupt Practices Act Update: The Government Finds It Tough To Obtain Criminal Convictions

02/03/2012

Foreign Corrupt Practices Act Update: The Government Finds It Tough To Obtain Criminal Convictions

by Craig S. Denney and Brett W. Johnson

The Department of Justice (DOJ) suffered another major loss in a high profile U.S. Foreign Corrupt Practices Act of 1977 (FCPA) prosecution in Washington D.C.

The FCPA generally prohibits U.S. companies and citizens, foreign companies listed on a U.S. stock exchange or any person acting while in the United States, from corruptly paying or offering to pay, directly or indirectly, money or anything of value to a foreign official to obtain or retain business (known as the "Anti-bribery Provisions"). The FCPA also requires issuers (any company including foreign companies) with securities traded on a U.S. exchange or required to file periodic reports with the Securities and Exchange Commission (SEC) to keep books and records that accurately reflect business transactions and to maintain effective internal controls (the "Books and Records and Internal Control Provisions"). The FCPA is jointly enforced by the DOJ and the SEC. A U.S. territorial nexus is not required for the FCPA to be implicated against U.S. companies and citizens. FCPA violations can occur even if the prohibited activity takes place outside of the U.S.

[Read the full article …]