Foreign official or foreign public official refers to a person who acts in an official capacity for a foreign government. The term is chiefly used in connection with international conventions and national laws against corruption in international trade.
International law
Members of the ''Organization for Economic Cooperation and Development'' (
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
) agreed the
OECD Anti-Bribery Convention in 1999 and this treaty has been ratified by 39 countries.
[Russia - OECD Anti-Bribery Convention](_blank)
OECD The document
[CONVENTION ON COMBATING BRIBERY OF FOREIGN PUBLIC OFFICIALS IN INTERNATIONAL BUSINESS TRANSACTIONS and Related Documents](_blank)
OECD defines a foreign public official as follows:
And expands the definition as such:
The definition of a foreign official defined in the OECD agreement is now referenced in enforcement actions by the United States Department of Justice.
National jurisdictions
US Department of Justice definition
According to the
US Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United Stat ...
, the term "foreign official" is defined as:
The
Foreign Corrupt Practices Act applies to US companies and foreign organisations or persons doing business within the borders of the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
. This definition also applies to issuers of publicly traded securities (companies traded on US stock exchanges and in other US markets). The intent of the law is to stop the
bribing
Bribery is the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With regard to governmental operations, essentially, bribery is "Corr ...
of foreign officials so that the actual providing of funds to foreign governments directly would not constitute a violation.
Risks of business with foreign officials
The process of recognising if an entity is doing business with an individual who would be considered a foreign official is not only necessary from a compliance perspective, but also necessary when evaluating the risks in a company's business model. This process can be very simple or may be quite complex depending on how many relationships an entity has in place. The process of identifying foreign officials is typically carried out by the comparisons of client or third-party lists with lists of foreign officials that contain the names and positions of such officials, as well as unique identifiers such as dates of birth, photos, and contact numbers.
The term foreign official should not be confused with the term "
politically exposed person
In financial regulation, a politically exposed person (PEP) is one who has been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and ...
", as this term relates to the financial sector and its clients. The term "foreign official" relates to all industries.
See also
*
Bribery Act 2010
The Bribery Act 2010 (c.23) is an Act of the Parliament of the United Kingdom that covers the criminal law relating to bribery. Introduced to Parliament in the Queen's Speech in 2009 after several decades of reports and draft bills, the Act recei ...
(United Kingdom)
*
Corruption of Foreign Public Officials Act
The ''Corruption of Foreign Public Officials Act'' (CFPOA, french: Loi sur la corruption d’agents publics étrangers) (the ''Act'') is an anti-corruption law in force in Canada. It was passed in 1999, ratifying the OECD Convention on Combating Br ...
(Canada)
*
OECD Anti-Bribery Convention
*
Politically Exposed Person
In financial regulation, a politically exposed person (PEP) is one who has been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and ...
References
{{reflist
United States foreign relations legislation
Corruption in the United States