In their recently issued joint guidance on the Foreign Corrupt Practices Act (FCPA), the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) explained that a parent company may be liable under the FCPA's anti-bribery provisions for the actions of a subsidiary not only when the parent directly participated in the subsidiary's misconduct, but also “under traditional agency principles.”
FCPA Anti-Bribery Liability for a Subsidiary's Conduct
The new Guidance raises the question of how much, if any, knowledge and control of a subsidiary's bribery, as opposed to its actions generally, the government believes is necessary for a parent to be held liable under the FCPA's anti-bribery provisions ' and whether the answer is different for the DOJ than for the SEC.
By
Laurence A. Urgenson, William J. Stuckwisch, And Brigham Q. CannonThis premium content is locked for Business Crimes Bulletin subscribers only
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