Carnegie Mellon University

No, the FCPA applies to all “domestic concerns” and their employees.  A “domestic concern” under the statute can include U.S.-based non-profits, NGOs, and educational institutions.

No, although cash bribery is what led to the enactment of the FCPA, its provision are actually much broader and include things that at first blush may seem innocent, including meals and entertainment.

The FCPA applies to payments and other things of value provided to what the statue refers to as “foreign officials.”  For purposes of the FCPA, the term “foreign official” includes not only government ministers and employees but also employees of government-owned or government-controlled entities, such as state-run universities.  A professor or other employee of a state-run university could be considered a “foreign official” for purposes of the FCPA.

The FCPA applies to any and all “things of value,” including gifts.  There are some exceptions to the general prohibition, however.  Faculty and Staff members should review the FCPA Guidance and the FCPA Training before giving any gifts to foreign colleagues at state-run universities overseas.  Any employee with questions about the guidance and/or training should contact the Office of the General Counsel.

Unfortunately, the FCPA does not contain a de minimis exception.  However, the absence of a de minimis exception does not mean that all gifts and meals are prohibited by the FCPA.  Faculty and Staff members should review the FCPA Guidance and the FCPA Training before giving any gifts, meals, or other entertainment, even if of nominal value.  In most cases, small promotional items, such as Carnegie Mellon memorabilia, can be given.  Any employee with questions about the guidance and/or training should contact the Office of the General Counsel.

The FCPA itself does not cover “family members” of foreign officials.  However, there are certain family relations that are so close as to give rise to a presumption that a foreign official derives benefits indirectly when money or other things of value are given to a family member directly.  For example, assume that someone on the staff of the Minister of Education in a foreign country suggested that the Minister would look favorably on the University if it hired the Minister’s son as a professor.  Technically, the benefit in this example – the job as a professor – is going to the son of the foreign official.  On the other hand, giving the professorship to the Minister’s son can be interpreted as an attempt to curry favor with the Minister himself, which is prohibited by the FCPA.