'Instrumentality' Definition Leads FCPA Bar to Discuss Its Meaning | White & Case LLP International Law Firm, Global Law Practice
'Instrumentality' Definition Leads FCPA Bar to Discuss Its Meaning

'Instrumentality' Definition Leads FCPA Bar to Discuss Its Meaning

On May 16, the US Court of Appeals for the 11th Circuit provided a definition of "instrumentality" under the Foreign Corrupt Practices Act (FCPA) to include state-owned companies. By defining "instrumentality," the new ruling narrows the unbounded interpretations of the FCPA.

"The court did an excellent job of boiling down [the definition] to its essence, so compliance officers can ask a simple question," said White & Case partner Kathleen Hamann, "does the foreign government treat [the entity] as its own?"

Hamann said the definition will be helpful to corporate compliance officers explaining their programs to company employees.