THE WASHINGTON COLLEGE OF LAW
SYLLABUS FOR
INTERNATIONAL ANTI-CORRUPTION LAW
FOR BUSINESS, FINANCE & DEVELOPMENT
LAW-7950-001, 2 CREDIT HOURS
FALL 2013
PROFESSOR: NANCY Z. BOSWELL
CONTACT INFORMATION: boswell@american.edu (preferred method of contact)
OFFICE HOURS: By appointment. Students are encouraged to contact me by email or before/after
class.
CLASS SCHEDULE: Tuesdays, starting August 27th, from 4:00 PM until 5:50 PM.
COURSE DESCRIPTION:
International anti-corruption law has evolved significantly in recent years with profound implications
for governments, the private sector, non-profits and development assistance communities and for
the lawyers advising them. This course will analyze the provisions and enforcement of international
anticorruption conventions criminalizing transnational bribery and enhancing public sector
transparency, integrity and accountability. It will also discuss private sector compliance programs,
development assistance integrity measures and sanctions programs, and multilateral and multistakeholder transparency initiatives.
It will emphasize information and issues of concern to practitioners and feature speakers from the US
government, multilateral organizations and the private and non-profit sectors.
PREREQUISITES:
This is an upper level seminar open to LLM students and to JD students who have taken international
law and basic criminal law courses.
EVALUATION/GRADING:
Evaluation/grading will be based on class attendance and participation in discussions of required
reading (25%), a substantial research paper of 20-25 pages (65%) and a presentation on the paper’s
key findings (10%). Students are strongly encouraged to meet with me by mid-September to discuss
potential research topics. Class will agree on a schedule for submitting outlines and drafts. Final
papers will be due by the start of Reading Week, December 5th.
COURSE MATERIALS:
Course materials draw on legal agreements, cases, academic texts, legislation, policy papers, law
review articles and other widely consulted reference materials. Required reading for discussion in
class is specified in the syllabus. Please check MyWCL for updates, which will be posted in advance.
TEXTBOOKS:
S. Rose Ackerman, Corruption and Government
E. Campos, G. Ware, Ed.: The Many Faces of Corruption
All other required reading is available online, as indicated. Where links are problematic, a web
search using the document title, particularly on the site of the publication source, should help locate
the document. Please contact me if you encounter difficulties accessing the documents.
CLASSES & READING ASSIGNMENTS:
AUGUST 27TH – ECONOMIC, SOCIAL AND POLITICAL CONSEQUENCES OF CORRUPTION
Reading:
S. Rose-Ackerman, Corruption & Government: Causes, Consequences & Reform, pgs.
1-38
D. Kaufmann, C. Gray, “Corruption and Development,” (Finance & Development,
March 1998)
http://siteresources.worldbank.org/INTWBIGOVANTCOR/Resources/gray.pdf
TI Corruption Perceptions Index, http://cpi.transparency.org/cpi2012
TI Global Corruption Report 2006 - Corruption in the Health Sector (Read Corruption
in Kenya’s National AIDS Control Council, pgs. 112-115 and skim other articles)
http://www.transparency.org/research/gcr/gcr_health
SEPTEMBER 3RD – CORRUPTION IN PROCUREMENT & CUSTOMS
Reading:
E. Campos, G. Ware, Ed.: The Many Faces of Corruption, (pgs 295-334)
US v. Siemens Bangladesh Limited, Statement of Offense, US District Court for the
District of Columbia,
http://www.justice.gov/opa/documents/siemens-bangladesh-stmt.pdf
- US v. Panalpina, Inc., Plea Agreement, Attachment B-Statement of the Facts, B-2-B19. www.justice.gov/opa/documents/panalpina-inc-plea-agreement.pdf
- World Bank Detailed Implementation Review – India Health Sector, (pgs. 9-12),
http://siteresources.worldbank.org/EXTDOII/Resources/WB250_Web_Vol1_012408.
pdf
Optional:
World Bank, “Corruption Warning Signs: Is Your Project at Risk,” pgs 17-27,
http://siteresources.worldbank.org/INTFIDFOR/Resources/46591861204641017785/2ProjectAtRisk.pdf
Most Common Red Flags of Fraud and Corruption in Bank-Financed Projects,
http://siteresources.worldbank.org/EXTGOVANTICORR/Resources/30358631281627136986/Most_Common_Red_Flag.pdf
SEPTEMBER 10TH – US LAW PROHIBITING FOREIGN BRIBERY: FOREIGN CORRUPT PRACTICES ACT
FCPA history, anti-bribery and books and records provisions; jurisdiction; penalties.
Reading:
- FCPA Resource Guide, pgs. 10-46, 68-72, 92-102, Department of Justice, November
2012,http://www.justice.gov/criminal/fraud/fcpa/guide.pdf
- US v. Siemens Aktiengesellschaft, Department of Justice Statement of Offense, pgs
21-25, 35-37, http://www.justice.gov/opa/documents/siemens-ag-stmt-offense.pdf
-“Former Chairman and CEO of Kellogg, Brown & Root Inc. Sentenced to 30 Months
in Prison for Foreign Bribery and Kickback Schemes,”
http://www.justice.gov/opa/pr/2012/February/12-crm-249.html
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Optional:
- Siemens AG Litigation Release No. 20829
http://www.sec.gov/litigation/litreleases/2008/lr20829.htm
- Institute for Legal Reform, February 21, 2012 Letter to Justice Department Re
“Guidance Concerning the FCPA”
http://www.instituteforlegalreform.com/doc/letter-to-the-doj-and-sec-regardingforthcoming-guidance-on-the-foreign-corrupt-practices-act
SEPTEMBER 17TH –
US Law: A Prosecutor’s Perspective on the FCPA & Emerging Issues
(Guest Lecturer: Nathaniel Edmonds, Paul Hastings, Former Deputy Chief, Fraud
Section, Department of Justice)
investigations, prosecution under other US laws, decisions to prosecute, negotiated settlements,
voluntary disclosure, multijurisdictional enforcement, whistleblower rules.
Reading:
FCPA, A Resource Guide to the U.S. Foreign Corrupt Practices Act, Pgs. 48-49, 52-55,
68-72, 74-77, Department of Justice, November
2012, http://www.justice.gov/criminal/fraud/fcpa/guide.pdf
- An Overview of the Federal Sentencing Guidelines,
http://www.ussc.gov/About_the_Commission/Overview_of_the_USSC/Overview_Fe
deral_Sentencing_Guidelines.pdf
Principles of Federal Prosecution of Business Organizations,
http://www.justice.gov/opa/documents/corp-charging-guidelines.pdf
US v. Siemens Aktiengesellschaft, Plea
Agreement, http://www.justice.gov/criminal/fraud/fcpa/cases/siemens/12-1508siemensakt-plea.pdf
Optional:
- US v. Biomet Inc., Department of Justice Deferred Prosecution Agreement, March 26,
2012, pgs. 1-10 and Attachment D
http://www.justice.gov/criminal/fraud/fcpa/cases/biomet/2012-03-26-biometdpa.pdf
- “SEC Adopts Rules to Establish Whistleblower Program,” SEC Press Release, May 25,
2011,http://www.sec.gov/news/press/2011/2011-116.htm
SEPTEMBER 24TH –
FOREIGN LAW ON TRANSNATIONAL BRIBERY
(Guest Lecture: Kathryn Nickerson, Senior Counsel, Office of the Chief Counsel for
International Commerce, U.S. Department of Commerce)
OECD and other multilateral convention prohibitions on transnational and
commercial bribery, peer review monitoring and illustrative country review findings
and cases.
Reading:
- OECD Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions and Related Documents, from start to p. 27,
http://www.oecd.org/daf/briberyininternationalbusiness/antibriberyconvention/38028044.pdf
- The UK Bribery Act of 2010,
http://www.legislation.gov.uk/ukpga/2010/23/pdfs/ukpga_20100023_en.pdf
- OECD Working Group on Bribery Annual Report 2012, from start to p. 43,
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http://www.oecd.org/daf/anti-bribery/AntiBriberyAnnRep2012.pdf
OECD Country Report -- Select US or UK Phase 3 Country Report or Russia Country
Report, http://www.oecd.org/daf/antibribery/countryreportsontheimplementationoftheoecdanti-briberyconvention.htm
OECD Recommendations, Annex II, pgs 30-32,
http://www.oecd.org/dataoecd/5/51/44884389.pdf
OCTOBER 1ST -
INDUSTRY SECTOR INITIATIVES
Distinctive challenges and approaches to corruption in industry sectors.
Class members will take responsibility for discussion of different sectors.
Reading:
- E. Campos, G. Ware, Ed.: The Many Faces of Corruption, Corruption in the Petroleum
Sector, pgs. 191-220)
- EITI Rules, 2011 Edition, http://eiti.org/files/2011-11-01_2011_EITI_RULES.pdf
- Open Contracting In Extractives, Open Data Initiative, The World Bank,
www.worldbank.org
- Conflict Minerals, SEC Final Rule, pgs 6-33, www.sec.gov/rules/final/2012/3467716.pdf
- “Anti-bribery and corruption systems and controls in investment banks” Financial
Services Authority, March 2012, http://www.fsa.gov.uk/static/pubs/other/antibribery-investment-banks.pdf
- The Wolfsberg Group 2011 Anti-Corruption Guidance
www.wolfsberg-principles.com
- Bank’s Management of High Money Laundering Risk Situations,
http://www.fsa.gov.uk/pubs/other/aml_final_report.pdf, Financial Services
Authority, June 2011.
- Annotated Water Integrity Scans - Manual, www.waterintegritynetwork.net
- “The Construction Sector Transparency Initiative,”
http://www.constructiontransparency.org/
- “Building Integrity and Countering Corruption in Defense & Security” (to be posted
on WCL)
- “Fraud, Corruption and Collusion in the Roads Sector,” INT Report, The World Bank,
www.worldbank.org
OCTOBER 8TH -
PRIVATE SECTOR ETHICS & COMPLIANCE PROGRAMS & PRACTICE
US and international norms of voluntary compliance practice.
Reading:
FCPA, A Resource Guide to the U.S. Foreign Corrupt Practices Act, Pgs. 57-67,
Department of Justice, November 2012.
2011 Federal Sentencing Guidelines Manual, Applicability of Chapter Eight (8A1.1);
Effective Compliance and Ethics Program(8B2.1),
http://www.ussc.gov/Guidelines/Organizational_Guidelines/guidelines_chapter_8.htm
US v Garth Peterson, Information, (particularly para. 13-23), US District Court, Eastern
District of New York,
http://www.justice.gov/criminal/fraud/fcpa/cases/petersong/petersonginformation.pdf
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OECD Good Practice Guidance on Internal Controls, Ethics and Compliance,2009
OECD Recommendation, Annex II
http://www.oecd.org/daf/briberyininternationalbusiness/antibriberyconvention/38028044.pdf
The Bribery Act 2010: Guidance about commercial organizations preventing bribery,
http://www.justice.gov.uk/downloads/legislation/bribery-act-2010-guidance.pdf
OCTOBER 15TH - ADDRESSING PUBLIC SECTOR CORRUPTION: ANTI-CORRUPTION CONVENTIONS
UNCAC and other anti-corruption conventions; peer review monitoring and
illustrative country reviews
Reading:
- United Nations Convention Against Corruption,
www.unodc.org/unodc/en/treaties/CAC
- US Self-assessment checklist on the implementation of the UNCAC, www.unodc.org,
August 15, 2007.
Reference:
Technical Guide to the UN Convention Against Corruption
http://www.unodc.org/documents/corruption/Technical_Guide_UNCAC.pdf
OCTOBER 22ND - DEVELOPMENT ASSISTANCE: ALTERNATIVE APPROACHES TO FIGHTING CORRUPTION
World Bank and regional development bank investigations, sanctions and referrals.
Reading:
- INT Annual Report, Fiscal 2011, World Bank Integrity Unit & Debarment,
www.siteresources.worldbank.org, pgs. 32-39,44,49.
- World Bank Anti-Corruption Guidelines,
- http://siteresources.worldbank.org/PROJECTS/Resources/409401173795340221/EnglishFinalAnti_CorruptionGuidelines5_05_08nd.pdf
- World Bank Sanctions Procedures, January 1, 2011,
http://siteresources.worldbank.org/EXTOFFEVASUS/Resources/WBGSanctionsProced
uresJan2011.pdf
- The World Bank Sanctions Board Decision No. 47 (Sanctions Case No. 121) issued on
May 30, 2012,
http://siteresources.worldbank.org/EXTOFFEVASUS/Resources/WebsiteDecision47.p
df
- Summary of World Bank Group Integrity Compliance Guidelines
http://siteresources.worldbank.org/INTDOII/Resources/IntegrityComplianceGuidelin
es_2_1_11web.pdf
OCTOBER 29TH - THE ROLE OF FINANCIAL INSTITUTIONS & GATEKEEPERS
(GUEST LECTURER: HEATHER LOWE, GLOBAL FINANCIAL INTEGRITY)
Money laundering and corruption, bank secrecy, offshore havens, beneficial
ownership, legal professional responsibility.
Reading:
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“Laundering the Proceeds of Corruption,” FATF Report, July 2011, www.fatf-gafi.org,
pgs. 16-34.
Keeping Foreign Corruption Out of the United States: Four Case Histories, US Senate
Permanent Sub-Committee on Investigations, pgs 1-14, February 4, 2010
www.hsgac.senate.gov/subcommittees/investigations
Corruption: A Reference Guide and Information Note on the use of the FATF
Recommendations to support the fight against corruption, www.fatf-gafi.org
“How Delaware Thrives as a Corporate Tax Haven,” Leslie Wayne, New York Times,
June 30, 2012 http://www.nytimes.com/2012/07/01/business/how-delawarethrives-as-a-corporate-tax-haven.html?pagewanted=all
International Bar Association, Risks and Threats of Corruption in the Legal Profession,
(October 2010).
http://www.ibanet.org/Document/Default.aspx?DocumentUid=AE4B6ED2-4871487B-B653-31424494D97B
Reference:
FATF Recommendations February 2012, pages 4-5, 11-30.
Optional:
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“France Issues Arrest Warrant for Obiang”, S. Rubenfeld, Wall Street Journal, July 13,
2012 http://blogs.wsj.com/corruption-currents/2012/07/13/france-issues-arrestwarrant-for-obiang/?mod=google_news_blog
“Amended Complaint in Obiang Case Details Alleged Corruption”, S. Rubenfeld, Wall
Street Journal, June 13, 2012, http://blogs.wsj.com/corruptioncurrents/2012/06/13/amended-complaint-in-obiang-case-details-alleged-corruption/
T. S. Greenberg, Politically Exposed Persons: A Guide to Preventive Measures for the
Banking Sector, The World Bank
NOVEMBER 5TH - ‘SOFT LAW’: OTHER MULTILATERAL ANTI-CORRUPTION & TRANSPARENCY INITIATIVES
Multilateral arrangements and bilateral ‘dialogues’ promoting transparency,
whistleblower protection and other anti-corruption measures.
Reading:
- G20 Anti-Corruption Action Plan, www.g8.utoronto.ca/g20/2010/g20seoulanticorruption.pdf
- Open Government Declaration, www.opengovpartnership.org/open-governmentdeclaration.
- G-8 Open Data Charter,
www.gov.uk/government/uploads/system/uploads/attachment_data/file/207772/O
pen_Data_Charter.pdf
- Anti-Corruption Working Group documents: Denial of Safe Haven, Asset Disclosure
and select one country example from Asset Tracing & Mutual Legal Assistance,
http://www.g20.org/en/working-groups
- APEC General Transparency Standards, http://www.apec.org/MeetingPapers/Leaders-Declarations/2003/2003_aelm/leadersstmtimplapectranspstd.aspx
- Free Trade Agreements: Matrix of transparency & anti-corruption provisions
- 2012 U.S. Model Bilateral Investment Treaty, Articles 10, 11 at pgs. 13-16,
http://www.ustr.gov/sites/default/files/BIT%20text%20for%20ACIEP%20Meeting.pdf
- Deauville Partnership: Action Plan on Governance & Anti-Corruption (Handout)
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NOVEMBER 12TH SUSPENSION & DEBARMENT
Debarment of corrupt contractors as an anticorruption tool in procurement systems
around the world: EU, US federal system, multilateral bank (MDB) procurements.
Reading:
Federal Acquisition Regulation: Debarment, Suspension and Ineligibility, Sub-part 9.4,
https://www.acquisition.gov/far/current/html/Subpart%209_4.html
“Can Your Code of Business Ethics and Conduct Program Withstand Government
Scrutiny?’”
Stanley R. Soya
Laura S Shores, Pepper Hamilton,LLP
http://governmentcontractsconnectionph.files.wordpress.com/2011/03/code-ofethics-government-scrutiny_11.pdf
Subpart 3.10—Contractor Code of Business Ethics and Conduct,
https://www.acquisition.gov/far/html/Subpart%203_10.html#wp1080758
52.203-13 Contractor Code of Business Ethics and Conduct,
https://www.acquisition.gov/far/html/52_200_206.html#wp1141983
The World Bank Group: Mutual Enforcement of Cross Debarment Decisions Among
Multilateral Development Banks, March 3, 2010,
http://siteresources.worldbank.org/INTDOII/Resources/Bank_paper_cross_debar.pdf
“Don’t Go Overboard Banning Military Contractors,” Steven Shaw, Thompson
Reuters, http://blogs.reuters.com/great-debate/2012/08/08/dont-go-overboardbanning-military-contractors/
NOVEMBER 19TH & 26TH – PRESENTATIONS & DISCUSSIONS OF PAPERS
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