RULE 20
Foreign Corruption & Bribery: Report to SEC/CFTC
Introduction
Enacted in 1977, the Foreign Corrupt Practices Act (FCPA) aims to combat global corruption. The 2010 Dodd-Frank Act enhanced the FCPA’s scope by adding a whistleblower reward provision, addressing international bribery, market manipulation, and other criminal activities.
Open to both U.S. and non-U.S. citizens, the FCPA enables confidential and anonymous reporting, receiving tips from around the world. Foreign whistleblowers have already been awarded millions of dollars for their valuable information and assistance in investigations.
Rule 20 offers a comprehensive overview of the FCPA, including the crimes it covers, evidence of its success, and testimonies from U.S. officials supporting international whistleblowers.
Practice Tips
- File international anti-corruption cases under Dodd-Frank and submit claims using the SEC or CFTC TCR forms.
- Under Dodd-Frank, non-U.S. whistleblowers can remain anonymous and confidential.
- The Foreign Corrupt Practices Act is codified at 15 U.S.C. § 78m and § 78dd-1, et seq.
- The Department of Justice resource page on the FCPA is located at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
- The best source of information explaining the requirements of the FCPA is the 2020 version of the Resource Guide to the U.S. Foreign Corrupt Practices Act, available at www.justice.gov/criminal-fraud/fcpa-resource-guide.
- Information on the CFTC’s enforcement action against Glencore is linked on the commission website at https://www.cftc.gov/PressRoom/PressReleases/8534-22.
Resources
See Rule 6 for information on the Foreign Corrupt Practices Act and the jurisdiction of the SEC and CFTC to police international corruption.
The Department of Justice and SEC co-publish a comprehensive manual on the FCPA:
- A Resource Guide to the FCPA
- The FCPA is codified at 15 U.S.C. §§ 78dd-1, 78dd-2, 78dd-3, 78m, 78ff
The maximum penalty per/bribe is $2 million, the maximum penalty for a books and records violation is $25 million. Under other provisions of law companies can be sanctioned up to 2-times the value of the profits obtained from the bribes paid.
The original legislative history behind the FCPA is located at:
The history behind the 1988 amendments is located at:
- H.R. Rep. No. 100-576, at 916-24 (1988)
- S. Rep. No. 105-277, at 2 (1998) (discussing efforts by U.S. government to encourage U.S. trading partners to enact legislation similar to FCPA following 1988 amendments) [hereinafter S. Rep. No. 105-277]
- International Anti-Bribery and Fair Competition Act of 1998, Pub. L. 105-366, 112 Stat. 3302 (1998)
Information on the OECD’s Anti-Bribery Convention, and its implementation, is available at OECD, Country Reports on the Implementation of the OECD Anti-Bribery Convention.
“In issuing [a $30 million USD] award, the Commission specifically noted that allowing foreign nationals to receive awards under the program best effectuates the clear Congressional purpose underlying the award program.”
Quick Links
- Foreign Corrupt Practices Act 15 USCS § 78m and § 78dd-1
- Securities Whistleblower Incentives and Protection – FCPA 15 U.S.C Section 78-u-6
Kohn, Kohn and Colapinto filed detailed rulemaking comments ensuring whistleblowers can collect “related action” rewards.
- Securities and Exchange Commission Report on Questionable and Illegal Corporate Payments and Practices (May 1976).
- House Report (Sep 28, 1977).
- Senate Report (May 2, 1977).
- House Conference Report (Dec 6, 1977).
- The legislative history of the FCPA is published by the DOJ
- SEC decision awarding a foreign national an award under the FCPA
- THE ROLE OF WHISTLEBLOWERS AND WHISTLEBLOWER PROTECTION – OECD
- Stephen M. Kohn, “Unlocking the Power of the Wildlife Whistleblower Laws,” statement to the U.S. Council on Wildlife Trafficking (Jan. 17, 2017)
- The best source of information explaining the requirements of the FCPA is the Resource Guide to the U.S. Foreign Corrupt Practices Act, published by the Criminal Division of the DOJ and the Enforcement Division of the Securities and Exchange Commission (SEC).
- The Department of Justice (DOJ) resource page on the FCPA
- The FCPA statute is translated into fifty languages.
- The SEC publishes a list of FCPA prosecutions.
- The SEC has a web page, “FCPA Spotlight.” The SEC’s website also contains a list of every foreign company that sells stocks to Americans under the American Depository Receipt program.
- JPMorgan Chase Pays $264 Million in Sanctions for Bribing Foreign Government Officials
- Whistleblower and Qui Tam Blog
- International Presentations (powerpoints)
Steven Kohn speaks in Sarajevo US laws and applicable throughout the World
IVLP Pakistan (September 20, 2023) “A New Tool for Fighting Corruption: Whistleblower Protections” The International Visitor Leadership Program (IVLP) is the U.S. Department of State’s premier professional exchange program.
Frequently Asked Questions
Related Rules
Order Your Copy Today!
All purchases or donations proceeds go to support the National Whistleblower Center, a 501(c)(3) non-profit organization dedicated to supporting whistleblowers.
Shipping is to the United States Only
For international orders, please contact [email protected].