Companies that make, authorize, or even promise bribes to
foreign officials face the risk of criminal prosecution under U.S.
law. The United States Foreign Corrupt Practices Act of
19771 (FCPA) makes it illegal for issuers2,
domestic concerns3 and, under certain circumstances,
foreign persons, to bribe foreign officials4 in order to
obtain or retain business. The FCPA also covers the officers,
directors, employees and agents of such companies. Companies that
acquire businesses that have engaged in bribery can acquire
significant liability.
FCPA compliance presents special challenges for U.S. companies
and investors engaged in infrastructure and energy transactions
worldwide. Infrastructure and energy projects are particularly
susceptible to FCPA violations. Companies can reduce this risk by
performing in-depth FCPA diligence when acquiring an at-risk
target.
