Last month, President Biden signed the annual defense spending bill for 2024, otherwise known as National Defense Authorization Act (NDAA), into law. Contained in the NDAA is a provision titled the Foreign Extortion Prevention Act (FEPA), which for the first time makes it a crime for foreign officials or other non-citizens to demand or accept bribes from an American citizen or organization.
Until now, the primary tool that the U.S. Department of Justice used to prosecute those involved in bribery schemes was the Foreign Corruption Practices Act. The FCPA, however, only provides the power to prosecute those on the “supply side” of the transaction, meaning those who offer bribes to secure business or pursue other goals. With the enactment of FEPA, U.S authorities can now prosecute foreign officials who demand or accept such bribes — the “demand side” of the transaction. Violators of FEPA face a maximum fine of $250,000 or three times the amount of the bribe, up to fifteen years in prison, or both.
Elements of FEPA
Specifically, FEPA makes it illegal:
For any foreign official or person selected to be a foreign official: 1. To corruptly demand, seek, receive, accept, or agree to receive, or accept, directly or indirectly, anything of value personally or for any other person or nongovernmental entity; 2. By making use of mails or any means or instrumentality of interstate commerce;
From: 1. Any person while in the territory of the United States; 2. Any issuer; or 3. Any domestic concern;
In return for: 1. Being influenced in the performance of any official act; 2. Being induced to do or omit to do any act in violation of the official duty of such foreign official or person; or 3. Conferring any improper advantage, in connection with obtaining or retaining business for or with, or directing business to, any person.
“Without this, the U.S. legal arsenal for combating international corruption was incomplete,” said Tom Firestone, a partner at law firm Squire Patton Boggs. “If it’s enforced effectively, it would hopefully protect U.S. companies operating abroad so they won’t be subject to these demands.”
Under FEPA, the DOJ can charge foreign officials with bribery and can be arrested while in the U.S or in any country that has an extradition treaty with the U.S. Before the enactment of FEPA, the DoJ had brought charges against foreign officials for bribery, but such charges were brough under different laws such as money-laundering or fraud. Now, the DoJ is provided with a direct means to purse corrupt foreign officials and will most likely increase their efforts in targeting the “demand side” of these prohibited transactions. 
Jacob Horowitz is a contributing editor at Compliance Chief 360°