What is the Foreign Extortion Prevention Act (FEPA)?
The Foreign Extortion Prevention Act (FEPA) is a federal anti-corruption law enacted in December 2023 that criminalizes the solicitation or acceptance of bribes by foreign officials from U.S. individuals or businesses.
The law was signed by President Joe Biden as part of the National Defense Authorization Act for Fiscal Year 2024.
FEPA complements the existing Foreign Corrupt Practices Act (FCPA) by targeting the “demand side” of international bribery.
While the FCPA prohibits Americans and U.S. companies from offering bribes to foreign officials, FEPA allows U.S. prosecutors to pursue criminal charges against foreign officials who demand or accept those bribes.
By addressing both sides of bribery transactions, FEPA strengthens the United States' legal framework for combating global corruption.
Under the Foreign Corrupt Practices Act (FCPA), a mistake made by a regional manager in another country can have repercussions all the way up to the boardroom.
For diplomatic staff, trade representatives, government-adjacent consultants, and anyone acting on behalf of a foreign government, whether in an official or unofficial capacity, with any U.S. jurisdictional touchpoint, the enforcement landscape has fundamentally changed.
Your best chance for a favorable outcome is to work with an experienced California federal criminal defense attorney at Eisner Gorin LLP. To schedule a consultation, call (818) 781-1570 or contact us here.
Why the Foreign Extortion Prevention Act Was Created
Before FEPA was enacted, U.S. anti-corruption laws primarily punished individuals or companies that offered bribes to foreign officials. However, there was no federal statute that directly penalized foreign officials who demanded or accepted those bribes.
This created an imbalance in anti-corruption enforcement. U.S. companies could face severe penalties under the FCPA, while corrupt foreign officials who solicited the payments often avoided prosecution.
FEPA was designed to close this legal gap by allowing the United States to criminally prosecute foreign officials who solicit bribes tied to U.S. business interests.
What the Foreign Extortion Prevention Act Criminalizes
Under FEPA, it is illegal for a foreign official to demand, seek, receive, or agree to receive anything of value from a U.S. person or company in exchange for performing or influencing official acts.
The law applies when the bribe is connected to:
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obtaining business contracts
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maintaining business relationships
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influencing government decisions
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securing regulatory approvals
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directing business to certain companies
FEPA focuses on the conduct of the foreign official rather than the person offering the bribe.
Who Is Considered a “Foreign Official” Under FEPA
FEPA broadly defines a foreign official as any person acting in an official capacity for a foreign government.
This definition may include:
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government employees
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ministers or cabinet officials
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members of foreign legislatures
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judges or court officials
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military officers
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employees of state-owned enterprises
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political party officials
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close associates or family members acting on behalf of an official
Because of this broad definition, the law can apply to many individuals who exercise governmental authority abroad.
Extraterritorial Jurisdiction
One of the most significant aspects of FEPA is its extraterritorial reach.
The law allows the United States to prosecute foreign officials even if the bribery demand occurs outside U.S. territory. As long as the conduct involves a U.S. company, a U.S. citizen, or a business operating in the United States, federal prosecutors may pursue charges.
This approach follows the precedent established by other federal anti-corruption laws such as the FCPA.
Relationship Between FEPA and the Foreign Corrupt Practices Act (FCPA)
FEPA works alongside the Foreign Corrupt Practices Act to combat international bribery.
Foreign Corrupt Practices Act (FCPA)
The FCPA makes it illegal for U.S. individuals and companies to offer or pay bribes to foreign officials to obtain business advantages.
The Foreign Agents Registration Act (FARA) involves extensive documentation. The government frequently bases its case on emails, invoices, consulting agreements, encrypted messages, travel logs, and public statements. Developing defenses under FARA can often be complex.
Foreign Extortion Prevention Act (FEPA)
FEPA focuses on the opposite side of the transaction by criminalizing the act of foreign officials demanding or accepting bribes from Americans.
Together, the two laws address both sides of international corruption schemes.
Enforcement of the Foreign Extortion Prevention Act
FEPA enforcement is primarily handled by federal law enforcement agencies, including:
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the Department of Justice (DOJ)
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the Federal Bureau of Investigation (FBI)
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the Securities and Exchange Commission (SEC)
These agencies may also cooperate with foreign governments and international organizations when investigating cross-border corruption cases.
Penalties for Violating the Foreign Extortion Prevention Act
Foreign officials convicted under FEPA may face severe criminal penalties.
Possible penalties include:
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fines of up to $250,000, or
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fines equal to three times the value of the bribe, and
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up to 15 years in federal prison
These penalties are more severe than many FCPA penalties, which generally carry a maximum prison sentence of five years for anti-bribery violations.
Impact of FEPA on International Business
FEPA may significantly affect the way multinational companies operate abroad.
The law may:
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discourage foreign officials from demanding bribes
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provide additional legal protection for U.S. companies facing extortion demands
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increase transparency in international business transactions
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strengthen global anti-corruption enforcement
By targeting corrupt officials directly, FEPA aims to reduce bribery pressures that many companies face in foreign markets.
Implications for Individuals Under Investigation
Individuals involved in international business transactions should be aware that FEPA investigations may affect both foreign officials and U.S. persons connected to bribery allegations.
Potential implications include:
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expanded corruption investigations
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cooperation requests from federal prosecutors
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increased scrutiny of international transactions
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potential opportunities for cooperation agreements with authorities
Anyone under investigation for international bribery or corruption should seek experienced legal counsel immediately.
Frequently Asked Questions
What is the Foreign Extortion Prevention Act?
The Foreign Extortion Prevention Act is a U.S. law that criminalizes foreign officials who demand or accept bribes from American individuals or companies.
When was FEPA enacted?
FEPA was signed into law in December 2023 as part of the National Defense Authorization Act.
How is FEPA different from the FCPA?
The FCPA punishes Americans who offer bribes to foreign officials, while FEPA punishes foreign officials who solicit or accept those bribes.
Can the United States prosecute foreign officials under FEPA?
Yes. The law provides extraterritorial jurisdiction, meaning foreign officials can be prosecuted even if the conduct occurs outside the United States.
What are the penalties for violating FEPA?
Penalties may include fines of up to $250,000 or three times the value of the bribe and prison sentences of up to 15 years.
Why Legal Representation Matters in International Corruption Cases
Investigations involving international bribery laws often involve complex financial transactions, multinational corporations, and cooperation between multiple government agencies.
An experienced federal criminal defense attorney can:
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analyze financial and corporate records
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challenge the government's evidence
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protect clients during federal investigations
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negotiate with prosecutors before charges are filed
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develop strategic defenses in complex international corruption cases
Early legal representation can greatly influence the outcome of an investigation. Eisner Gorin LLP is available to assist. Book your consultation now.