Client Alert: “Instrumentality” Ruling in United States vs. Esquenazi

In a long-awaited decision, on May 16, 2014, the U.S. Court of Appeals for the Eleventh Circuit, in United States vs. Esquenazi, defined the term “instrumentality” of a foreign government under the U.S. Foreign Corrupt Practices Act (“FCPA”). In addition to being the first appeals court to decide this issue, the decision is important in that the test promulgated by the court will determine who is a “foreign official” under the FCPA.

The court’s definition of “instrumentality” and the list of factors that should be used to determine the potential applicability of the definition provide clarity on a much debated issue. From a compliance perspective, the decision prompts companies to examine their anti-bribery and corruption programs and procedures keeping in mind this new ruling.

In Navigant’s latest Anti-bribery and Corruption Client Alert, our experts provide the background and overview of the court’s decision and outline the potential implications to multi-national companies. For a full summary and expert analysis on how this ruling impacts to your organization, read Navigant's latest client alert.

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