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

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