Earlier today, we looked at the arrest of company executives and employees attending the SHOT Show in Las Vegas for violations of the Foreign Corrupt Practices Act (FCPA).
The Department of Justice has posted a “Lay-Person’s Guide” on its website. Now would be a good time to review some of the highlights:
The FCPA makes it unlawful to bribe foreign government officials to obtain or retain business. With respect to the basic prohibition, there are five elements which must be met to constitute a violation of the Act:
A. Who — The FCPA potentially applies to any individual, firm, officer, director, employee, or agent of a firm and any stockholder acting on behalf of a firm. Individuals and firms may also be penalized if they order, authorize, or assist someone else to violate the antibribery provisions or if they conspire to violate those provisions…
B. Corrupt intent — The person making or authorizing the payment must have a corrupt intent, and the payment must be intended to induce the recipient to misuse his official position to direct business wrongfully to the payer or to any other person…
C. Payment — The FCPA prohibits paying, offering, promising to pay (or authorizing to pay or offer) money or anything of value.
D. Recipient — The prohibition extends only to corrupt payments to a foreign official, a foreign political party or party official, or any candidate for foreign political office…a member of a royal family, a member of a legislative body, or an official of a state-owned business enterprise [could] be considered a “foreign official.”
E. Business Purpose Test — The FCPA prohibits payments made in order to assist the firm in obtaining or retaining business for or with, or directing business to, any person. The Department of Justice interprets “obtaining or retaining business” broadly, such that the term encompasses more than the mere award or renewal of a contract. It should be noted that the business to be obtained or retained does not need to be with a foreign government or foreign government instrumentality.
That’s a broad-brush overview. The guide includes permissible payments, affirmative defenses, sanctions, guidance…and from the main FCPA page you can access further information, including:
Opinion Procedure Releases (1993 – Present)
Opinion Procedure Regulations
Review Procedure Releases (1980 – 1992)
Lay-Person’s Guide to the FCPA Statute (June 2001)
International Agreements Relating to Bribery of Foreign Officials
Other FCPA & Anti-Corruption Sites
Recent Court Opinions
I’m going to be talking more about the arrests in the coming days and as new information becomes available. For now, I just wanted to make sure readers knew of this resource.
Tomorrow we’re going to look at the investigation and one of the principals behind it.
More from the SHOT Show: SAF attorney tells press conference ‘You can’t pick and choose’ from Bill of Rights
More from Gun Rights Examiners
Atlanta: Ed Stone | Austin: Howard Nemerov | Boston: Ron Bokleman | Charlotte: Paul Valone | Cheyenne: Anthony Bouchard | Chicago: Don Gwinn | Cleveland: Daniel White | DC: Mike Stollenwerk | Denver: Dan Bidstrup | Fort Smith: Steve D. Jones | Grand Rapids: Skip Coryel | Knoxville: Liston Matthews | Los Angeles: John Longenecker | Minneapolis: John Pierce | National: Dan | Phoenix: Douglas Little | Seattle: Dave Workman | St. Louis: Kurt Hofmann | Wisconsin: Gene German
WIDTH=”160″ BORDER=”0″ ALT=””>