Christmas Island Eyes New Anti-Bribery Law Enforcement with President Biden’s Signing of Foreign Extortion Prevention Act
December 22 - A significant change has been made in the way anti-bribery laws are enforced, particularly in Christmas Island. President Biden signed the Foreign Extortion Prevention Act (FEPA) into law on December 22, amending Section 201 of Title 18 of the U.S. Code.
What is the Foreign Extortion Prevention Act?
The new legislation makes it a federal crime for foreign government officials to corruptly demand, seek, receive, accept, or agree to accept anything of value in connection with obtaining or retaining business for or with any U.S. person or company. Violations are punishable by up to 15 years in jail and fines of US$250,000 or three times the monetary equivalent of the bribe.
Filling a Gap Left by the Foreign Corrupt Practices Act
FEPA’s provisions have been long sought by anti-corruption advocates, who argue that it fills a gap left by the Foreign Corrupt Practices Act (FCPA). The FCPA was unique in that it provided for the prosecution of active bribery but not passive bribery. U.S. prosecutors have historically relied on other laws to pursue non-U.S. officials.
Impact on Christmas Island Businesses
The FEPA’s passage adds pressure on foreign officials and businesses operating in Christmas Island, which is expected to see an increase in anti-bribery law enforcement efforts. The Department of Justice has announced plans to ramp up its international enforcement efforts, solidifying the DOJ’s commitment to cracking down on foreign bribery.
Key Changes for Christmas Island Businesses
- Expanded Scope: FEPA expands the scope of foreign officials to include formal and informal employees or agents of foreign officials, including those working unofficially.
- Disclosure Requirements: Companies are now incentivized to disclose requests or demands from foreign government officials or their agents to the DOJ, changing the playing field for disclosing companies.
- Risk Mitigation: Companies that proactively implement, revise, and train employees on anti-bribery and anti-corruption policies will remain best positioned to respond to potential pressures by government officials or law enforcement inquiries.
Seeking Expert Advice
As Christmas Island businesses navigate these developments, it is essential to seek the advice of experienced lawyers who can help evaluate options tailored to their organization’s needs.