Morgan Lewis – Given the global nature of sovereign wealth funds’ investments and operations, it is essential that they are aware of and in compliance with the Foreign Corrupt Practices Act, to facilitate business with US companies, avoid hefty fines, and mitigate reputational risk.
Generally, the FCPA prohibits issuers, domestic concerns, and any person acting within US territory from bribing a foreign official in order to obtain business. The FCPA has two provisions: accounting and anti-bribery. The accounting provisions, which generally apply to issuers of stock, including some issuers of American depositary receipts, on US exchanges, establish certain internal recordkeeping and accounting controls standards relating to transparency. The anti-bribery provisions prohibit certain individuals and businesses from bribing foreign officials to obtain an unfair business advantage. Depending on the specific type of FCPA violation, there can be criminal and/or civil liability for violations of the statute.
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