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Corporate

Mar. 26, 2010

The Line Between Lawful and Unlawful Payments

Jason de Bretteville of Sullivan & Cromwell explores the relevance of evidence of economic coercion as a defense to the Foreign Corrupt Practices Act.

By Jason de Bretteville

The Foreign Corrupt Practices Act of 1977 (FCPA) prohibits the making of "corrupt" offers, promises or payments to foreign officials in order to secure their official action or inaction, while at the same time requiring that issuers of securities registered in the United States maintain accurate books and records and adequate internal controls.

Although the FCPA provides for a variety of affirmative defenses and excep...

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