Foreign Extortion Prevention Act in FY2024 NDAA Raises Concerns Over Legalizing Bribery of Foreign Officials Among U.S. Companies

The recent passage of the Foreign Extortion Prevention Act (FEPA) as part of the FY2024 National Defense Authorization Act (NDAA) has raised concerns regarding the implications for U.S. businesses and foreign bribery practices. Critics argue that the FEPA effectively legalizes bribery of foreign officials, undermining the Foreign Corrupt Practices Act (FCPA), which has long prohibited such actions. Some experts suggest that the enforcement of the FCPA protects U.S. firms from extortion, allowing them to refuse bribes without fear of legal repercussions. Others express that the changes could lead to a culture where bribery becomes a normalized cost of doing business abroad. There is a growing sentiment among industry insiders that the enforcement of the FCPA has had a positive social impact by promoting compliance and self-policing among companies. The overall consensus among many businesses is that they prefer the existing FCPA framework, which discourages bribery rather than legitimizing it.