The Foreign Corrupt Practices Act

On June 27, 2001, a Grand Jury indicted Richard King for conspiring to violate the Foreign Corrupt Practices Act ('FCPA') 15 U.S.C. §§78.

The case involved an FBI investigation into dealings between an American Businessman who was planning to pay a bribe of one million U.S. dollars to Senior Costa Rican officials. See U.S. vs. Richard King (2003).

The FCPA prohibits payments by American businessmen to a foreign official for influencing that official 'in his official capacity'.

The FCPA makes it unlawful for American businessmen to bribe foreign Government officials to obtain or retain business. The FCPA also makes it unlawful to pay the foreign Government officials bribes through intermediaries.

Under the FCPA, the person making or authorizing the payment must have a corrupt intention and the payment must be intended to induce the recipient to misuse his official capacity.

APPLICABILITY TO JAMAICA

American businessmen in Jamaica may not bribe Government officials to achieve their purposes. The prohibition goes as far as preventing the payment of monies to candidates for election.

'GREASE' PAYMENTS EXCLUDED

Payments called 'grease payments' or facilitating payments are now excluded from the anti-money laundering provisions of the Foreign Corrupt Practices Act.

Deliberate ignorance of bribery does not prevent the defendant from the responsibility under the FCPA. If the defendant is “placed on notice” that criminal activity is probably afoot, the defendant may be guilty under the FCPA if he or she fails to investigate the facts that have been brought to his or her attention.

The Foreign Corrupt Practices Act provides the comprehensive framework for the regulation of American business bribery overseas. All American businessmen should make themselves familiar with the wording of the Statute.

David P. Rowe
Professor of Law
University of Miami School of Law

August 5, 2005

Copyright © 2005 The Law Offices of David P. Rowe & Rosemarie D. Robinson. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.

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