FCPA ENFORCEMENT AND THE NEED FOR JUDICIAL INTERVENTION I. II.
388 ............................................ INTRODUCTION 390 .................................... BACKGROUND 390 .......................... A. The Scope of the FCPA ........ 390 1. The Anti-Bribery Provisionsof the Act ........ ..... 393 2. The Accounting Provisions ................ ...... 394 3. FCPA Exceptions and Defenses ........... 394 a. Facilitating Payments ...................... ..... 394 .................... b. Lawful Payments ...... 394 c. No De Minimis Exception ............. ...... 395 B. Enforcement of the FCPA ................. ..... 395 ................ 1. The Enforcement Agencies ..... 396 .................. 2. Enforcement Procedures
III.
CONSEQUENCES OF FCPA ENFORCEMENT AND PROPOSITIONS ............................................. FOR REFORM
..... 397 Consequences ofFCPA Enforcement ............ 397 ......................................... 1. Individuals ...... 398 ..................... 2. Impact on Business. ............. 398 ................ a. Increased Costs
B.
Propositionsfor Reform by the U.S. Chamber of 400 ..... .............................. Commerce ....... 400 1. Adding a Compliance Defense ............ ........ 402 2. Limiting Successor CriminalLiability ......... 3. Adding a "Willfulness" Requirementfor Corporate ........ 404 CriminalLiability................... 4. Limiting a ParentCompany's Liabilityfor Acts of a 406 .................................... Subsidiary.. .......... 408 5. Statutory Definition of "ForeignOfficial" a. UnitedStates v. Aguilar.......................... 409 .......... 411 b. UnitedStates v. Esquenazi............ c. Amending the Definition or Judicial Review? ...... . .. . . 414
b.
IV.
Collateral Litigation.................................
399
416
THE NEED FOR JUDICIAL INTERVENTION .....................
A. B.
V.
397
A.
...... 417 ..................... Diversion Agreements 418 ................................ ProsecutorialOverreach ............ 418 1. United States v. Aguilar.............. .......... 419 2. The Africa Sting Cases ................ ............... 420 3. United States v. John O'Shea........
CONCLUSION
.......................................
......
421
387