US Congress Passes Bill Criminalising “Demand Side” Of Foreign Bribery

The U.S. Congress has passed legislation that would make it a federal crime for foreign officials to demand or receive bribes.

The Foreign Extortion Prevention Act (FEPA) was approved Tuesday as part of the annual National Defense Authorization Act. It would impose criminal liability on any non-U.S. government employee or ex-official who solicits or accepts bribes from Americans.

The law closes a loophole where only the bribe payers, often U.S. companies, faced prosecution while the recipient officials avoided charges. Advocates praised it as the most expansive anti-foreign bribery statute in decades.

“FEPA holds the potential to help root out foreign corruption at its source,” said Scott Greytak of Transparency International U.S., a leading backer alongside business groups and watchdogs. Over 120 countries see systemic graft problems.

By deterring the demanding of bribes, rather than just their payment, the legislation could disrupt dynamics in corrupt regimes that steal state resources. Citizens internationally could benefit.

The Biden administration has also committed to working with Congress on laws that punish both sides of bribery schemes. The president is expected to quickly sign FEPA into effect as a tool to combat overseas criminality threatening American interests.