A federal appeals court ruling that clarifies the definition of a “foreign official” under the Foreign Corrupt Practices Act has effectively upheld the government’s broad view of who qualifies.
In addressing the case, U.S. v. Esquenazi, the 11th Circuit Court of Appeals became the first appellate court in FCPA history to tackle what constitutes an “instrumentality” within the FCPA’s definition of “foreign official,” which the statute vaguely defines as “any officer or employee of a foreign government or any department, agency, or instrumentality thereof.” Companies have long struggled with whether employees of state-owned entities qualify as public officials under the FCPA, and this ruling now provides some guidance on the issue.
