Article by John Joy, Managing Attorney, FTI Law.ย
The Foreign Corrupt Practices Act (FCPA) is a U.S. law that prohibits bribery of foreign (non-U.S.) government employees. ย If you think you have information on an FCPA violation, we suggest that youย speak to an attorney immediately, as you may be entitled to a reward for reporting it.ย
If you are trying to figure out if something is an FCPA violation, here are the three signals that will help you recognize a violation:
1. A Foreign Government Employee Is Involved
The FCPA prohibits bribery of (non-U.S.) government employees. ย A government employee can beย anyone that works for a foreign government.ย ย This can include people of any profession; doctors, engineers, accountants, clerks or politicians. ย It also includes people employedย indirectlyย by the government, such as by a company owned by the government, or an organization controlled by the government. ย
The following are some examples of people whoย would beย considered a government employee:ย
- A doctor working in a hospital owned by the governmentย
- A clerk issuing planning permits or licensesย
- A teacher working in a school run by the government
- A contractor working for a state-owned oil company.
2. Something Of Value Is Given or Promised ย
The FCPA prohibits giving orย promisingย “anything of value” to the government employee. ย The term “anything of value” is very broad and includes cash, holidays, meals or entertainment for the government employeeย or their family. ย It can also include more obscure benefits like promising to give jobs, internships, or charitable donations to the employee or their family.ย
The following are some examples of items thatย can beย considered something of value:ย
- Promising to give an internship to someone in their family
- Giving a donation to a charity they work for
- Using a distributor or contractor they have a connection with
- Paying for travel to places where people usually vacation
- Promising to fix a road in an area they live in.
3. Something Is Expected In Returnย
The last piece of an FCPA violation is that the person giving something to the government employee expects to get something in return. ย This is sometimes called aย “quid pro quo” ย (“this for that”). ย Usually the person giving something to the government employee expects to get aย business advantageย in return, such as a contract, information on competitors, or inside information on a tender process. ย
In one notable FCPA caseย we previously profiled, a company was trying to win a government contract. ย During the negotiations, the company promised to give a job to one of the government employees they were negotiating with. ย That case led to a large fine for the company andย $28 million for the whistleblower who reported it.ย
If you think you have information on an FCPA violation, you shouldย speak with an attorney immediately, as you may be entitled to million-dollar reward for reporting it. ย The first person to report the violation gets the award, so it’s important to move quickly before someone takes your award.ย
