On June 30, 2011, the Department of Justice (“DOJ”) issued its first Foreign Corrupt Practices Act (“FCPA”) Opinion Procedure Release of the year. Release 11-01 was submitted to DOJ on May 25, 2011. The Requestor is a U.S. adoption service provider and a “domestic concern.” The Requestor’s routine business before relevant foreign government agencies consists of seeking approval of pending adoptions. This business is guided by international treaty and administrative rules.
The Requestor proposes to pay certain expenses for a trip to the U.S by two officials from two foreign government agencies. The purpose of the trip is to educate the officials regarding the services provided by the Requestor. The officials will be selected by their respective agencies, without any involvement from the Requestor. The sponsored trip will last approximately two days (not including travel time) and the Requestor will pay for economy class airfare, domestic lodging, local transport, and meals. The Requestor has assured that it has no non-routine business before the relevant foreign government agencies. The Requestor will not host the designated officials’ spouses or family members as part of the trip and will not provide any cash to the officials. Any souvenirs provided to the officials would reflect the Requestor’s business and/or logo and be of nominal value. The Requestor will not compensate the foreign agencies or officials for the visit and will not fund or organize any entertainment or side trips. Another adoption agency has also been invited to participate in the visit.
Based on these facts, DOJ indicated that it does not intend to take any enforcement action with respect to this proposal. DOJ stated that as presented, the expenses contemplated are reasonable under the circumstances and directly relate to “the promotion, demonstration, or explanation of [the Requestor’s] products or services.” 15 U.S.C. § 78dd-2(c)(2)(A). DOJ also noted two other favorable Opinion Releases it recently issued regarding sponsoring travel and related expenses for foreign officials:
07-02 – DOJ issued an opinion declining to take enforcement action if the company proceeded with sponsoring domestic expenses for a trip by six officials from an Asian government for an educational program at the company’s U.S. headquarters. The purpose of the visit was to familiarize the officials with the operation of a U.S insurance company. The company represented that it would not select the officials who would participate and would not pay any costs directly to the officials. The company had no non-routine business pending before the relevant agency.
07-01 – DOJ issued an opinion declining to take enforcement action if the company proceeded with sponsoring domestic expenses for a trip by a six-person delegation from an Asian government. The company represented that the purpose of the visit would be to familiarize the delegates with the nature and extent of the company’s business operations. The company also represented that it would not select the officials who would participate and would not pay any costs directly to the officials. The company did not conduct any operations in the foreign country at issue.