Asian
briefings
a special supplement to ACC Docket
graciously sponsored by UBIC, Inc.
1 What Every In-house Counsel Should Know
About Compliance with the US Foreign
Corrupt Practices Act
By Mukesh Advani, Esq.
11 PRC’s New Environmental Protection Law:
Impact for Enterprises, the Public and the
Government
By Sherry Tao
15 Recent Developments on
PRC Food Safety Law
By Lili Jian
What Every In-house Counsel Should
Know About Compliance with the
US Foreign Corrupt Practices Act
By Mukesh Advani, Esq., Member UBIC, NA Advisory Board
Fang Fang, former JP Morgan’s chief
executive for China investment banking and vice chairman of investment
banking in Asia, was recently arrested
by the Hong Kong anti-corruption
agency and questioned for compliance
with anti-corruption laws as it relates
to hiring of employees. The arrest is
part of a much wider probe by the US
investigators looking into whether
JP Morgan and four or more other
banks violated the US Foreign Corrupt Practice Act (FCPA) with respect
to their hiring practices in Asia. With
respect to Fang, the issue relates to the
hiring of the son of China Everbright
Group Chairman Tang Shuangning.
According to published reports, Sh-
uangning approached Fang regarding
a job for his son, Tang Xiaoning, at the
bank. Fang jumped at the opportunity
because it could and did lead to assign-
ments from China Everbright Group.
Such high-profile investigations and
arrests are not uncommon under the
FCPA and many other anti-corruption
laws that are now on books in various
jurisdictions in Asia. The largest penalty
imposed under the FCPA has been a
staggering $800 million against Siemens.
The longest prison terms imposed under
the FCPA has been 15 years.
The reach of the FCPA is very broad
and sweeping. It is a law that can
land the top executives of a company,
including the CEO, in prison. There
has also been a rapid increase in the
enforcement of such laws. Under the
new strategy adopted by the US Department of Justice (DOJ) and the Securities & Exchange Commission (SEC),
there is a renewed and aggressive effort
to target not just companies, but also
responsible individuals. Both the
Interesting in authoring for Asian
Briefings Visit www.acc.com/docket/
edguide.cfm, or contact Editor in Chief
Tiffani Alexander at alexander@acc.com.