Atlanta Foreign Corrupt Practices Act Lawyer

The U.S. Foreign Corrupt Practices Act (FCPA) prohibits payments to foreign officials with the aim of securing or maintaining business. The U.S. Department of Justice is the primary enforcement agency of the FCPA but the Securities and Exchange Commission (SEC) also may bring a civil action to enjoin any act or practice of a firm if it appears that the firm is violating the anti-bribery provisions of the FCPA. The U.S. Department of Commerce also has a role providing guidance to U.S. exporters regarding FCPA compliance.

Because the fines can be very high for violations of the FCPA, and because the Act explicitly provides that U.S. persons and companies can be held liable for the acts of their representatives if they have reason to know that the representatives are making bribes on their behalf, the FCPA forces U.S. directors, officers, and managers to exercise great care when contracting with foreign consultants, representatives, or joint venture partners for any work that might involve external interfaces on their behalf. U.S. persons and companies should perform due diligence on such representatives before entering into contracts and relationships that could result in improper offers to foreign officials.

Criminal violations of the FCPA can result in companies facing fines up to $2 million per violation and individuals facing fines up to $100,000 and up to five years in jail. Note that fines imposed on individuals may not be paid by their employer or principal. Moreover, under the Alternative Fines Act, these fines may be actually much higher -- the actual fine may be up to twice the benefit that the defendant sought to obtain by making the corrupt payment.