New U.S. Law Targets Foreign Officials Receiving Bribes
Anticorruption activists worldwide are optimistic about a new U.S. law that enables Washington to prosecute foreign officials who accept bribes. The Foreign Extortion Prevention Act (FEPA) focuses on the “demand” side of the equation, targeting foreign government officials seeking or accepting payouts. President Joe Biden signed the bill into law in December as part of a National Defense legislation.
Scott Greytak, an advocate at Transparency International, believes that the new law will have a significant impact on behavior, as it puts every foreign government employee on notice that they could face prosecution by the U.S. government. However, some experts, like Mike Koehler from Southern Illinois University School of Law, consider this measure to be mere “tokenism.” They argue that promoting transparency and encouraging other countries to enforce their own laws against bribery would be more effective in reducing corruption.
While the Foreign Corrupt Practices Act (FCPA) has been used in the past to target corrupt foreign officials, the Justice Department has also utilized other statutes, such as money laundering, to address this issue. Notable FCPA cases include Goldman Sachs paying $2.9 billion in 2020 for bribes to Malaysian and Abu Dhabi officials, and a 2009 case involving a $402 million criminal file on Halliburton unit KBR. However, Nigerian officials involved in these cases were not imprisoned.
Transparency International’s research reveals the challenges in combating corruption, with most countries scoring below 50 on their annual “Corruption Perceptions Index.” Inadequate funding for enforcement and other governance issues contribute to these low scores. Legal experts caution that foreign policy concerns and the unwillingness of governments to extradite defendants could hinder prosecutions, even with the introduction of FEPA.
Advocates for FEPA view it as a means of prioritizing the fight against corruption. The law obliges the Justice Department to provide annual reports on the prevalence of bribery and its enforcement efforts. Patrick Stokes, who prosecuted the Bonny Island case while at the Department of Justice, believes that FEPA places anti-corruption efforts at the forefront. However, he acknowledges that existing money laundering laws can also be utilized to prosecute foreign officials. Jason Linder, a former U.S. prosecutor, believes that corruption remains prevalent in certain countries and that FEPA, while a positive step, will require time to evaluate its effectiveness.
In conclusion, the new U.S. law aims to address the issue of foreign officials receiving bribes. While some believe it will bring about behavioral changes, others view it as a symbolic gesture. The success of FEPA will depend on enforcement efforts and cooperation from other nations in combating corruption, a challenge that requires long-term commitment.
The new U.S. law, Foreign Extortion Prevention Act (FEPA), allows Washington to prosecute foreign officials who receive bribes. This targets the “demand” side of illicit payments. Anticorruption activists have high hopes for the law, believing it will change behavior and make fighting corruption a priority. However, some legal experts consider the law to be tokenism and favor greater transparency and enforcement of other countries’ laws. The success of FEPA will depend on how it is enforced and measured over the long term.
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