The U.S. Foreign Corrupt Practices Act of 1977 (FCPA), 15 U.S.C. § 78dd-1 et seq., makes it illegal for a company, its employees, directors, officers, and agents to make a bribe or unlawful payment, or give anything of value to any foreign governmental official in order to obtain business with that government. The FCPA is jointly enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The activities addressed under the scope of the FCPA can occur inside or outside of the United States and still be enforced by the SEC and/or the DOJ.1 Companies subject to FCPA enforcement may turn to insurance to assist with costs to investigate claims that they violated the FCPA. Insurance is available for certain FCPA claims, but is often limited, and rarely covers the actual fines and penalties. This article addresses the FCPA in brief, outlines basic insurance coverage available with respect to the FCPA, and highlights two new products from the insurance industry that may provide additional insurance for this rapidly increasing corporate exposure.
The FCPA in Brief
— Anti-bribery Provisions
— Books and Records Requirements
FCPA Enforcement and the Potential Costs
Directors and Officers Insurance Coverage for FCPA Investigations
Recent Insurance Industry Response
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