Foreign Bribe Taking Targeted in US Defense Authorization Bill

James Koukios spoke to Bloomberg Law regarding a provision within the National Defense Authorization Act (NDAA), which cleared the U.S. Congress on Dec. 14 and is awaiting President Biden’s signature. The new legislation grants federal prosecutors new authority to charge overseas officials for demanding or receiving bribes from U.S. companies.

James noted that the enforcement of the NDAA may be more nuanced, stating, “When it comes down to actually enforcing it, I think it’s going to be very difficult and tricky.” If a line prosecutor develops evidence that an adversary such as Vladimir Putin or even a politician from a U.S. ally country, had received bribes, it “would have major diplomatic implications” to actually charge the individual, he added.

James also said he suspects the Foreign Corrupt Practices Act unit at Department of Justice’s (DOJ) criminal fraud section—where he was once a manager—will have primary enforcement jurisdiction of the new policy. Given the sensitivity to international relations, he said DOJ will need to set up a careful review process requiring sign-off from senior department officials before an overseas individual is indicted.

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