In his article for the New York Law Journal, partner Chris Zona examines the Foreign Extortion Prevention Act (FEPA), the most significant anti-bribery legislation since the Foreign Corrupt Practices Act (FCPA) of 1977. Chris argues that while FEPA aims to address the “demand side” of foreign bribery by punishing foreign officials who demand or receive bribes, it faces substantial jurisdictional challenges and questions about its enforceability.
Chris highlights that FEPA mandates U.S. entities to create mechanisms for reporting demands from foreign officials and train their personnel accordingly. However, the U.S. Department of Justice has not yet provided extensive guidance on FEPA, leaving entities to navigate these new requirements on their own.
The article discusses potential complications in enforcement and coordination between the DOJ and the Securities and Exchange Commission (SEC), as well as the significantly harsher penalties under FEPA compared to the FCPA. Chris emphasizes that the true impact of FEPA will become clearer with the first annual report due in December 2024, which will provide insights into the law’s effectiveness and enforcement efforts.
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Chris is a partner in the White Collar and Criminal Defense and Litigation practices at Mandelbaum Barrett PC in New York. Contact him at czona@mblawfirm.com.