EB5 Investors Magazine | Page 15

share. But following the Asian financial crisis of the 1990s, it became evident that, in the long term, a corrupt business climate harms all countries concerned, in addition to frustrating international efforts to foster legitimate economic growth in less developed countries. Some 41 countries have now adopted laws similar to the FCPA under a convention established by the Organization for Economic Cooperation and Development (OECD). Most notably, in 2010 the United Kingdom adopted and began enforcing its Antibribery Act, which is arguably more stringent than the FCPA. Forty years after its adoption, FCPA is not just the law of the land in the United States; it has become an international standard. By covering “anything of value” in addition to cash payments, the law may prohibit gifts and even lavish entertaining or a donation to an official’s designated charity. Enforcement Under the DOJ and SEC The U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice share responsibility for enforcing the FCPA. Most enforcement takes the form of criminal prosecution by the DOJ seeking fines and prison sentences. The SEC is limited to civil enforcement actions, and often refers its findings to the DOJ for joint investigation and litigation. The FBI, which is a division of the DOJ, has a team of agents dedicated specifically to investigating FCPA violations. Risks for EB-5 Issuers Focus on Contractors and Agents The foreign activities of EB-5 issuers consist of raising capital and facilitating the immigration of foreign nationals. This usually involves engagin r