What’s at Stake in Court Split Over Foreign Bribery Charges

James Koukios and Heather Han authored an article for Law360 discussing the U.S. Department of Justice (DOJ) using federal anti-money laundering laws, which carry a higher maximum term of imprisonment than charges brought under the Foreign Corrupt Practices Act (FCPA), to combat foreign corruption, and two recent federal court decisions that have called this practice into question.

“Charging money laundering independently or in conjunction with FCPA violations in corruption cases can benefit the DOJ in multiple ways,” the authors wrote. “First, because the MLCA [Money Laundering Control Act] carries higher maximum prison terms than the FCPA, adding money laundering charges raises the stakes of bribery prosecutions for individuals.”

They added: “Second, the MLCA provides an avenue for the DOJ to charge bribe recipients who are not punishable under the FCPA. The DOJ has long taken the position, to date unchallenged, that ‘although foreign officials cannot be prosecuted for FCPA violations, they can be prosecuted for money laundering violations where the specified unlawful activity is a violation of the FCPA,’ as articulated in its FCPA resource guide.”

Read the full article.