Navigating the Vagaries of the FCPA’s Business-Nexus Requirement

For a payment to a foreign official to violate the FCPA, it must be made for the purpose of obtaining or retaining business.  This “business-nexus” requirement limits, in theory, the types of payments that violate the FCPA.  In practice, however, the government has taken a broad view of the business nexus required for an FCPA violation and judicial direction has been vague.  In a guest article, Robert J. Cleary and Celia V. Cohen, a partner and associate, respectively, at Proskauer Rose, detail the little guidance available on the business-nexus requirement and offer concrete advice on how practitioners and companies can negotiate with the government when a case involves a questionable business nexus.  See also “How to Find a Business-Minded Compliance Monitor and Minimize Reporting Requirements When Negotiating an FCPA Settlement (Part One of Three)” (Feb. 20, 2013); Part Two (Mar. 6, 2013); Part Three (Mar. 20, 2013).

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