Foreign Corrupt Practices Act Unit

An Overview

Foreign Corrupt Practices Act

The Foreign Corrupt Practices Act of 1977, as amended, 15 U.S.C. §§ 78dd-1, et seq. ("FCPA"), was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.

Since 1977, the anti-bribery provisions of the FCPA have applied to all U.S. persons and certain foreign issuers of securities. With the enactment of certain amendments in 1998, the anti-bribery provisions of the FCPA now also apply to foreign firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment to take place within the territory of the United States.

The FCPA also requires companies whose securities are listed in the United States to meet its accounting provisions. See 15 U.S.C. § 78m. These accounting provisions, which were designed to operate in tandem with the anti-bribery provisions of the FCPA, require corporations covered by the provisions to (a) make and keep books and records that accurately and fairly reflect the transactions of the corporation and (b) devise and maintain an adequate system of internal accounting controls.

For particular FCPA compliance questions relating to specific conduct, you should seek the advice of counsel as well as consider using the Department of Justice's FCPA Opinion Procedure, found here.

Foreign Extortion Prevention Act

The Foreign Extortion Prevention Technical Corrections Act, 18 U.S.C. § 1352 (“FEPA”), was enacted in July 2024 and criminalizes the “demand side” of foreign bribery.  FEPA complements the Foreign Corrupt Practices Act by making it a crime for any foreign official (as defined in FEPA, see 18 U.S.C. § 1352(a)(1)), or a person selected to be a foreign official, to corruptly demand, seek, receive, accept, or agree to receive or accept, directly or indirectly, payments from certain classes of persons and entities by making use of the mails or any means or instrumentality of interstate commerce in return for taking certain actions and in connection with obtaining or retaining business. 

FEPA generally mirrors the FCPA by defining those classes of persons and entities as (i) “issuers” and “domestic concerns,” as defined in 15 U.S.C. §§ 78c(a) and 78dd-2, respectively, and their officers, directors, employees, agents, or stockholders thereof acting on their behalf; and (ii) “persons,” as defined in 15 U.S.C. § 78dd-3, if the foreign official or a person acting on behalf of the foreign official is in the territory of the United States.

A violation of FEPA is punishable by up to 15 years’ imprisonment and a maximum fine of $250,000 or three times the monetary equivalent of the thing of value demanded by the foreign official.  See 18 U.S.C. § 1352(b)(2).  Unlike portions of the FCPA, FEPA does not provide any civil remedies or grant enforcement authority to the U.S. Securities and Exchange Commission.

Report a FEPA Violation to the Criminal Division’s FCPA Unit at FCPA.Fraud@usdoj.gov.

Contact us Regarding the FCPA or FEPA

By Mail
Correspondence relating to the Foreign Corrupt Practices Act (FCPA) or the Foreign Extortion Prevention Act (FEPA) may be sent to:

Fraud Section, Criminal Division
U.S. Department of Justice
ATTN: Chief, FCPA Unit
950 Constitution Ave., NW
Washington, DC 20530

By E-Mail
Report a FCPA or FEPA Violation via Email to the Criminal Division’s FCPA Unit at FCPA.Fraud@usdoj.gov.