The u. S. Foreign corrupt practices act implications for international distributors

Penalties ramped up significantly in wake of Enron & other financial disasters

• Penalties ramped up significantly in wake of Enron & other financial disasters
• ▪ Civil fines: $10,000 against firm, officers, directors, employees, agents or shareholder acting on behalf of the firm
• ▪ Criminal:
• - $2 million for corporations/businesses;
• - $100,000 + 5 years’ jail for officers, directors, employees, agents
• - Actually higher under Alternate Fines Act
• ▪ Debarment: no federal contracts, no export licenses, no OPIC funds
• ▪ SEC fines of $500,000 for entities, $100,000 for natural persons
• ▪ Generally, no private cause of action under the FCPA but violation of Travel Act may  action for treble damages under RICO

• Penalties