Foreign governments seek shares of FCPA settlements

Non-profit group proposes that SEC gives “victimized” foreign entities portion of bribery case proceeds

Last week, the Securities and Exchange Commission (SEC) received a letter containing a convoluted proposal that would drastically alter the way it approaches foreign bribery cases.

In its letter, the non-profit group Socio-Economic Rights and Accountability Project (SERAP), which focuses on anti-corruption efforts in Nigeria, asked the SEC to consider allowing foreign government entities involved in corruption schemes to apply for a portion of the agency’s settlements under the Foreign Corrupt Practices Act (FCPA), which prohibits companies with U.S. ties from bribing foreign officials in order to secure business. SERAP reasons that “it is axiomatic that victimized foreign government entities bear the cost of bribery and corruption of their officials.”

Ashley Post

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