New U.S. Bribery Law Could Put Non-U.S. Officials Under Unwarranted Scrutiny
The increasingly aggressive U.S. Department of Justice has been handed new tools to extend its targeting of non-U.S. individuals in corruption investigations: A new law targets foreign government officials who demand or receive payments from U.S. individuals or entities. This puts non-U.S. politically connected persons at fresh risk of being reported by politically-motivated rivals. We explore proactive steps at-risk individuals should consider.
January 11, 2024
The U.S. Department of Justice (DOJ) has aggressively extended its targeting of non-U.S. individuals and government officials in corruption investigations. In December 2023, the U.S. adopted legislation making it a crime for a foreign government official to demand or receive payments from U.S. individuals or entities. This new law expands the DOJ’s authority, increasing the risks for current and former government officials and their assets.
Prior global anti-corruption statutes, including the globally enforced U.S. Foreign Corrupt Practices Act (FCPA), target companies and individuals offering payments to government officials, but did not make it illegal for a government official to accept such a payment. The new U.S. law, the Foreign Extortion Prevention Act (FEPA), allows the DOJ to target foreign government officials directly.
Current and former politically connected persons in non-U.S. jurisdictions now face fresh risks from aggressive U.S. prosecutors operating outside the borders of the U.S. In addition to these U.S. prosecutors, these risks may be initiated by politically motivated domestic rivals falsely reporting their political rivals to the DOJ in order to subject them to invasive and damaging investigations, threatening their domestic political reputations, assets and freedom of movement through the Interpol system.
At-risk individuals should consider taking several proactive steps, including:
Given the DOJ’s new weapons to directly target non-U.S. officials, current and former government officials can quickly find themselves subjected to unwarranted scrutiny by unsavory political rivals attempting to use the DOJ as a political weapon. If, however, this tactic is identified early, the risks to their assets, reputation and liberty can be mitigated through early and proactive action.
Kobre & Kim is a global law firm focusing on cross-border disputes and investigations, often involving fraud and misconduct.
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