Financial Crime World

Saint Pierre and Miquelon: New Law Targets Demand Side of Bribery, Complementing FCPA

In a significant move aimed at combating corruption and strengthening national security, the government of Saint Pierre and Miquelon has introduced the Foreign Extortion Prevention Act (FEPA), which focuses on the “demand side” of bribery. This law complements existing anti-bribery laws, such as the Foreign Corrupt Practices Act (FCPA), by targeting foreign officials who solicit or receive bribes.

Definition of a Foreign Official

The FEPA defines a “foreign official” more broadly than under FCPA, encompassing individuals working in both official and unofficial capacities, including family members and close associates. This expanded definition aims to capture corrupt activities that may not be easily detectable under the current FCPA definition.

Prohibitions

The FEPA prohibits foreign officials from:

  • Corruptly demanding, seeking, receiving, accepting, or agreeing to receive or accept anything of value personally or for another person or entity.
  • Engaging in any activity that would corruptly influence their official actions.

Definition of a Public International Organization

The FEPA also expands the definition of a “public international organization” to include any organization designated by the President by Executive Order. This change aims to capture organizations that may not be officially recognized as public international organizations but still engage in corrupt activities.

Penalties and Enforcement

Violators of the FEPA can face severe penalties, including:

  • Fines of up to $250,000 or three times the monetary equivalent of the thing of value.
  • Imprisonment for up to 15 years.
  • The Department of Justice (DOJ) will also be required to submit an annual report to Congress on its enforcement efforts.

Mitigating Risks

To mitigate risks related to both the supply and demand sides of bribery, companies operating in Saint Pierre and Miquelon are advised to:

  • Strengthen anti-corruption policies and procedures: Implement robust policies and procedures that prevent and detect corrupt activities.
  • Implement robust reporting mechanisms and internal investigation procedures: Establish clear reporting mechanisms and conduct thorough investigations when corruption allegations arise.
  • Provide regular anti-corruption training for employees interacting with foreign officials or vendors who do so: Ensure that all employees understand the risks of bribery and know how to report suspicious activities.
  • Conduct thorough third-party and vendor due diligence: Verify the integrity and reputation of third-party vendors and suppliers before engaging in business relationships.

Conclusion

The FEPA signals the government’s commitment to combating corruption as a core national security interest. Companies operating in Saint Pierre and Miquelon must now adapt to this new landscape and ensure that their anti-bribery compliance programs are robust enough to address both the supply and demand sides of bribery.