🌍 The Dawn of a New Era in Anti-Corruption Law: Foreign Extortion Prevention Act (FEPA) 🌍
- Tomasz Kruk
- Sep 24, 2024
- 2 min read
On December 22, 2023, President Joe Biden signed into law the Foreign Extortion Prevention Act (FEPA), marking a groundbreaking step in international anti-corruption efforts. While the Foreign Corrupt Practices Act (FCPA) has long targeted U.S. entities offering bribes, FEPA fills a crucial gap by addressing foreign officials who demand or accept bribes. This legislation represents a pivotal expansion of U.S. extraterritorial jurisdiction, setting a bold precedent in holding foreign bribe-takers accountable.
Here are some of the key provisions of FEPA, as outlined in the legislation:
1. Prohibition of Bribe Demands by Foreign Officials
FEPA amends Section 201 of Title 18, U.S. Code, making it unlawful for any foreign official to corruptly demand, seek, or accept any form of bribe, either directly or indirectly, from U.S. citizens or entities. This includes anything of value given in exchange for:
Influencing the performance of any official act,
Inducing the official to violate their duty, or
Conferring any improper advantage in business transactions.
2. Penalties for Violations
Foreign officials found guilty under FEPA face severe penalties, including:
Fines of up to $250,000 or three times the value of the bribe,
Imprisonment for up to 15 years, or
Both penalties.
This provision is designed to send a strong message to corrupt officials worldwide: engaging in bribery with U.S. entities now comes with significant legal risks, even beyond their own borders.
3. Extraterritorial Jurisdiction
One of the most notable aspects of FEPA is its extraterritorial reach. This means that foreign officials who demand bribes from U.S. entities can be prosecuted under U.S. law, even if the misconduct occurs outside of the United States. This extends the power of U.S. authorities to hold foreign bribe-takers accountable globally, providing a level playing field for U.S. businesses operating in corrupt environments.
4. Victims of Kleptocracy Fund
FEPA establishes a Victims of Kleptocracy Fund, into which penalties and fines collected under the Act are deposited. These funds are then allocated to anti-corruption and investigative programs such as:
The International Criminal Investigative Training Assistance Program,
The Kleptocracy Asset Recovery Initiative, and
The Office of International Affairs.
This provision ensures that resources from FEPA violations are directed toward combating global corruption and strengthening legal frameworks.
5. Mandatory Reporting by DOJ
FEPA mandates that the Attorney General submit an annual report to Congress, providing an overview of bribery involving foreign officials. This report must include:
Data on where bribery crimes are most prevalent,
Summaries of enforcement actions, and
Diplomatic efforts to protect U.S. entities from foreign bribery.
This reporting ensures transparency and oversight in the enforcement of FEPA, while also highlighting areas where additional diplomatic or legal efforts may be required.
With FEPA, the U.S. has introduced a powerful tool to combat corruption globally, addressing the demand side of bribery for the first time. Compliance officers and international legal teams should take immediate steps to assess how this new law impacts their risk assessments and business strategies. FEPA represents the next frontier in anti-corruption enforcement, and its implementation will undoubtedly reshape the global business landscape.
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