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HOUSE_OVERSIGHT_022517

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OO expensive gifts. Like the domestic bribery statute, the FCPA Gifts, Travel, Entertainment, and Other Things does not contain a minimum threshold amount for corrupt of Value gifts or payments.* Indeed, what might be considered a A small gift or token of esteem or gratitude is often modest payment in the United States could be a larger and an appropriate way for business people to display respect much more significant amount in a foreign country. for each other. Some hallmarks of appropriate gift-giving Regardless of size, for a gift or other payment to vio- are when the gift is given openly and transparently, properly late the statute, the payor must have corrupt intent—that is, recorded in the giver’s books and records, provided only to the intent to improperly influence the government official. reflect esteem or gratitude, and permitted under local law. The corrupt intent requirement protects companies that Items of nominal value, such as cab fare, reasonable engage in the ordinary and legitimate promotion of their meals and entertainment expenses, or company promo- businesses while targeting conduct that seeks to improp- tional items, are unlikely to improperly influence an off- erly induce officials into misusing their positions. Thus, it cial, and, as a result, are not, without more, items that have is difficult to envision any scenario in which the provision resulted in enforcement action by DOJ or SEC. The larger of cups of coffee, taxi fare, or company promotional items or more extravagant the gift, however, the more likely it was of nominal value would ever evidence corrupt intent, and given with an improper purpose. DOJ and SEC enforce- neither DOJ nor SEC has ever pursued an investigation ment cases thus have involved single instances of large, on the basis of such conduct. Moreover, as in all areas of extravagant gift-giving (such as sports cars, fur coats, and federal law enforcement, DOJ and SEC exercise discre- other luxury items) as well as wides

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