Skip to content

Compliance Building

Doug Cornelius on compliance for private equity real estate

Menu
  • Home
  • About
    • About
    • About Doug
    • About This Website
    • Why I Blog
    • Speaking Engagements
    • Contact
    • Publications
  • Archives
    • Topic Archive
    • Book Reviews
    • Most Popular
  • Subscribe
  • Disclaimers
    • Disclaimers
    • Policies and Procedures
    • Use of Site Content
    • Comments
    • FTC Disclosure
Menu

Proclamation 7750, Diplomatic Immunity and Corruption

Posted on April 6, 2009April 15, 2009 by Doug Cornelius
Print Friendly, PDF & Email

The Foreign Corrupt Practices Act only applies to those making bribes. It does not apply to the recipients of bribes. Since the recipient must be a “foreign official” you run into the issue of “diplomatic immunity.”

The concept is that officials should only be held accountable to the laws in their home state. We would not want our officials being courted off to a foreign country for prosecution. Other countries should not expect their officials to be courted off to the U.S. for prosecution. I am sure you have seen an episode of Law & Order or Lethal Weapon2 where a criminal runs free under diplomatic immunity.

It should not surprise you that there is a correlation between parking violations scofflaws under diplomatic immunity and the corruption in their home country.  Ray Fishman and Edward Miguel published a paper researching parking violations and diplomatic immunity in New York City. (The Clinton-Schumer Amendment, which gave the New York City permission to tow diplomatic vehicles, revoke their official parking permits, and have 110 percent of the total amount due paid from U.S. government aid to the offending diplomats’ countries of origin, resulted in a substanital decrease in diplomatic parking scofflaws. )

Congress wrote the FCPA that way because it believed “the efforts expended in resolving the diplomatic, jurisdictional, and enforcement difficulties that would arise upon the prosecution of foreign officials was not worth the minimal deterrent value of such prosecutions.” U.S. v. Castle, 925 F.2d 831 (5th Cir. 1991) (per curiam).

I [George W. Bush] have determined that it is in the interests of the United States to take action to restrict the international travel and to suspend the entry into the United States, as immigrants or nonimmigrants, of certain persons who have committed, participated in, or are beneficiaries of corruption in the performance of public functions where that corruption has serious adverse effects on international activity of U.S. businesses, U.S. foreign assistance goals, the security of the United States against transnational crime and terrorism, or the stability of democratic institutions and nations.

See:

  • Cornering the Kleptocrats, Part I by Richard Cassin on The FCPA Blog
  • Proclamation 7750 Unwrapped by Richard Cassin on The FCPA Blog
  • Proclamation 7750 (.pdf) – Text of the order
  • Privacy hedge on visa bans hides political sins published in The Standard
  • U.S. Strategy to Internationalize Efforts Against Kleptocracy: Combating High-Level Public Corruption, Denying Safe Haven, and Recovering Assets (.pdf) – Fact Sheet from the Bureau for International Narcotics and Law Enforcement Affairs
  • diplomatic immunity – wikipedia
  • Cultures of Corruption: Evidence from Diplomatic Parking Tickets (.pdf) by Ray Fishman and Edward Miguel (2006)
  • Vienna Convention on Diplomatic Relations of 1961
  • Strategies to Fight Kleptocracy (.pdf) by Loretta Graziano Breuning
  • The Fight Against Kleptocracy (.pdf) by Elizabeth G. Verville, Deputy Assistant Secretary of State for Crime, INL
  • Difficulties and Challenges in Strengthening Cooperation in the Denial of Safe Haven to Corrupt Officials and Those Who Corrupt Them (.pdf) by Kathleen M Hamann of Foley Hoag LLP

Share this:

  • Print (Opens in new window) Print
  • Share on Facebook (Opens in new window) Facebook
  • Share on LinkedIn (Opens in new window) LinkedIn
  • Share on X (Opens in new window) X
  • Email a link to a friend (Opens in new window) Email

Leave a ReplyCancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search for Stuff

Recent Stories

  • No Insider Trading Too Small
  • Cancel-Rebill and Screw Your Clients
  • New Risk Alert on Investment Adviser Annual Compliance Reviews
  • When Compliance Says “Do It”, But the Firm Doesn’t
  • Extending Compliance Dates for Form PF
  • The Massive Scope of Digital Asset Investment Scams
  • SEC Proposes Rescission of Political Contribution Rule for Investment Advisers
  • Is Failure to Disclose Misappropriation Committing Securities Fraud?
  • SEC Sweep of Fake Form ADV Filers
  • New Custody Rule Is On Its Way

Fight Cancer

Please support my Pan-Mass Challenge
Make a donation to fight cancer. donate.pmc.org/DC0176
pan-mass challenge badge

I am a lawyer, but I am not your lawyer. Since I’m a lawyer, this website may be considered attorney advertising under the ethical rules of certain jurisdictions. Please read my disclaimers page before taking any action. And then, don't take any action based on what I wrote.

Creative Commons logo with the text 'Some Rights Reserved' and three symbols representing attribution, non-commercial use, and share alike.

Compliance Building - by Doug Cornelius is licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.

© 2026 Compliance Building | Powered by Superbs Personal Blog theme