Introduction

• Author: Stuart H Deming; Truman K Butler; Vivian Robinson
• Pages: 1-2

1

By its enactment of the Foreign Corrupt Practices Act (‘FCPA’) in 1977,

the United States (‘US’) became the rst country to prohibit the bribery of

foreign public ofcials (‘FPO’). Prior to that time, no country prohibited

the bribery of FPOs. Indeed, the bribery of FPOs was so much an accepted

practice that it was recognized by taxing authorities in most of the world

as a legitimate business expense. Through a series of rather dramatic inter-

national developments beginning in the 1990s, that has all changed.

Today most developed countries have implemented and increasingly

enforce their domestic legislation prohibiting the bribery of FPOs. Virtually

all other countries are parties to international conventions prohibiting the

bribery of FPOs. It is only a matter of time before most of the world will

have adopted domestic legislation prohibiting the bribery of FPOs.

With the aggressive enforcement by the US, and by reason of its very

terms, the global reach of the FCPA has been far greater than any other

anti-bribery statute. Compliance with the FCPA must be a focus for enti-

ties engaged in international business. But, in addition, the breadth and

global reach of the UK’s Bribery Act 2010 (‘UK Bribery Act’) now effec-

tively requires entities engaged in international business to also comply

with its terms.

As a practical matter, the FCPA and the UK Bribery Act can apply to

almost anyone engaged in international business. Often in unexpected ways,

entities, or anyone acting on their behalf, can become subject to prosecution

for violating either law. The possibilities are virtually endless. As opposed

to determining when either law may apply, an entity’s efforts are better

directed towards understanding each law and how best to avoid a violation.

Chapter 1

Introduction

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