NEW YORK, March 9 (Reuters) – Leading Democratic U.S. senators on Monday will introduce a bill to extend the amount of time prosecutors have to file foreign bribery charges to 10 years, a warning to companies that they may still be held accountable for potential wrongdoing despite a Trump administration enforcement pullback.
The planned FCPA Reinforcement Act, co-sponsored by Elizabeth Warren, Dick Durbin, and 12 other senators, is a response to the Justice Department’s decision to pare down enforcement of the decades-old Foreign Corrupt Practices Act, a 1977 law that outlaws companies operating in the U.S. from bribing foreign officials.
It would extend the statute of limitations for anti-bribery violations from five years to 10 years, the lawmakers said. The change would last for eight years.
FCPA enforcement had become a cornerstone of U.S. and global anti-corruption efforts. But critics, including President Donald Trump, have said it creates an uneven playing field and hurts U.S. interests.
“Our bill sends a clear message: despite President Trump’s disregard for countering a range of financial crimes and his disdain for the Foreign Corrupt Practices Act, effective enforcement of that landmark law – a shield for U.S. companies that compete the right way – is here to stay,” Warren said in a statement shared with Reuters, which was first to report the effort.
It is unlikely that the planned bill will gain traction unless Democrats win more seats in November’s midterm elections. Still, it signals to companies that a future Democratic administration will likely seek ways to enforce historic FCPA violations.
The DOJ last year paused FCPA enforcement for review and later said it would narrow its enforcement of the law to certain alleged misconduct, such as activity that harms U.S. firms’ ability to compete with foreign rivals or is tied to operations of transnational criminal organizations.
Criminal defense lawyers said companies should still maintain anti-bribery programs, but the change in tone from the U.S. has raised concerns that some may reduce spending on compliance or cease reporting violations.
Sheldon Whitehouse, Jeanne Shaheen and Andy Kim are among the other senators sponsoring the bill.
(Reporting by Chris Prentice; Editing by Michelle Price and Andrea Ricci)
Comments