The following discussion provides a preliminary guide for those tasked with steering private equity firms through the shifting obstacle course of overseas anti-corruption compliance. Section I briefly reviews the centrality of overseas anti-corruption enforcement and its role in creating a more hospitable business climate in emerging markets. Section I also examines the American and British enforcement regimes in general before analyzing the most recent changes–specifically, changes as to the scope of liability and expansion of their jurisdiction. This section is designed to help determine whether investments or acquisitions fall within the purview of either enforcement regime. Section II discusses various strategies that may be implemented to prevent overseas corruption and minimize liability under the U.K. Bribery Law’s “adequate procedures” provision. Given how recently and significantly the enforcement efforts have changed, Section III identifies some areas of remaining ambiguity.
Isaac A. Binkovitz, Recent Changes in U.S. and U.K. Overseas Anti-Corruption Enforcement Under the FCPA and the U.K. Bribery Law: Private Equity Compliance, 3 MICH. J. PRIVATE EQUITY & VENTURE CAPITAL L. 75 (2013).