What Is the Foreign Extortion Prevention Act (FEPA)?

Enacted in December 2023 as part of the National Defense Authorization Act (NDAA) for Fiscal Year 2024, the Foreign Extortion Prevention Act (FEPA) represents the most significant expansion of U.S. foreign anti-corruption law in nearly half a century.

Codified at 18 U.S.C. § 201(f), FEPA criminalizes the "demand side" of international bribery, making it a federal crime for foreign officials to solicit or accept bribes from U.S. citizens, domestic companies, or foreign entities operating within U.S. jurisdiction.

By targeting foreign officials who demand kickbacks, FEPA addresses a historical legal imbalance, creating a comprehensive framework alongside existing federal bribery statutes to eliminate corrupt pressures in global commerce.

The Strategic Purpose of FEPA

Prior to FEPA's passage, U.S. anti-corruption enforcement focused almost exclusively on the supply side of bribery.

Under the Foreign Corrupt Practices Act (FCPA), federal prosecutors routinely penalized American companies and executives for paying bribes, while the foreign officials demanding those payments often escaped U.S. prosecution due to jurisdictional limitations.

FEPA closes this legal loophole. Under this statute, federal authorities can criminally prosecute foreign officials who leverage their governmental authority to extort money, gifts, or financial benefits from U.S.-linked businesses.

FEPA vs. FCPA: Key Differences

While FEPA and the FCPA both combat cross-border corruption, they target opposite parties in a bribery transaction:

Legal Feature	Foreign Corrupt Practices Act (FCPA)	Foreign Extortion Prevention Act (FEPA)
Primary Target	Supply Side: Individuals & entities offering/paying bribes	Demand Side: Foreign officials soliciting/accepting bribes
Statutory Home	Title 15 (15 U.S.C. §§ 78dd-1, et seq.)	Title 18 (18 U.S.C. § 201(f))
Maximum Prison Time	Up to 5 years per anti-bribery violation	Up to 15 years in federal prison
Maximum Fine	Up to $250,000 for individuals / $2M for entities	Up to $250,000 or 3x the value of the bribe
Enforcement Focus	Corporate compliance, internal controls, corrupt intent	Extortionate demands, official acts, foreign state capacity

Statutory Violations and Criminalized Conduct

Under 18 U.S.C. § 201(f), it is unlawful for any foreign official—corruptly, directly or indirectly—to demand, seek, receive, accept, or agree to receive anything of value in exchange for:

Influencing Official Decisions: Inducing a foreign authority to perform or omit an official act.
Securing Business Advantages: Obtaining, retaining, or directing business to any person or corporate entity.
Improper Influence: Persuading an official to use their influence with a foreign government or instrumentality to affect a government decision.

Broad Definition of "Foreign Official" Under FEPA

FEPA defines a "foreign official" broadly, covering virtually anyone exercising governmental or public functions on behalf of a foreign nation, including:

Government Personnel: Ministers, cabinet members, legislative members, agency officials, and judicial officers.
State-Owned Enterprises (SOEs): Executives, board members, and employees of government-controlled corporations or financial entities.
Political Entities: Leaders and senior figures in foreign political parties.
International Organizations: Representatives, directors, and officials of public international organizations (e.g., the United Nations, World Bank).
Official Proxies: Agents, consultants, or close family members acting in an official capacity on behalf of a foreign government entity.

Extraterritorial Jurisdiction and Federal Enforcement

FEPA establishes sweeping extraterritorial jurisdiction, granting U.S. federal prosecutors authority to investigate and charge foreign officials even if the extortionate demand occurred entirely outside U.S. borders. Federal jurisdiction is triggered whenever the corrupt demand involves:

A U.S. citizen, permanent resident, or national.
A U.S. business entity organized under federal, state, or territorial laws.
Any person or business operating while physically located in the United States or utilizing U.S. jurisdictional touchpoints (e.g., U.S. wire transfers, servers, or financial institutions).

Enforcement is primarily directed by the Department of Justice (DOJ) Fraud Section, working alongside the Federal Bureau of Investigation (FBI) and international law enforcement allies.

Frequently Asked Questions (FAQs)

What is the Foreign Extortion Prevention Act (FEPA)?

FEPA is a U.S. federal anti-corruption statute enacted in December 2023 that criminalizes the demand side of international bribery by making it illegal for foreign officials to solicit or accept bribes from U.S. persons or companies.

How does FEPA differ from the FCPA?

The FCPA punishes individuals and companies that offer or pay bribes to foreign officials, whereas FEPA targets and penalizes the foreign officials who demand, seek, or accept those corrupt payments.

Can the U.S. government prosecute foreign officials under FEPA if the conduct occurred abroad?

Yes. FEPA includes broad extraterritorial jurisdiction, permitting federal prosecution of foreign officials anywhere in the world as long as the bribery demand involves a U.S. citizen, a U.S. company, or a transaction with U.S. jurisdictional touchpoints.

What penalties apply to violations of FEPA?

Foreign officials convicted under FEPA face severe criminal consequences, including up to 15 years in federal prison and monetary fines reaching $250,000 or three times the monetary value of the solicited bribe.

What should a U.S. business or consultant do if faced with a foreign extortion demand?

Companies encountering extortion demands abroad should immediately consult experienced federal defense counsel to evaluate disclosure options, navigate anti-bribery compliance protocols, and avoid liability under both the FCPA and secondary federal wire fraud or money laundering statutes.

Strategic Legal Representation in Federal Anti-Corruption Investigations

FEPA enforcement creates new risks and avenues for federal scrutiny. Grand jury subpoenas, DOJ cross-border investigations, and mutual legal assistance treaty (MLAT) requests require experienced legal representation.

U.S. entities facing extortion abroad and individuals entangled in cross-border corruption inquiries must protect their rights immediately.

The federal criminal defense firm Eisner Gorin, LLP provides defense counsel in complex international bribery, FCPA, and FEPA investigations. Call (818) 781-1570 or submit an inquiry through our confidential contact page to arrange a case evaluation.

Foreign Extortion Prevention Act