THE WASHINGTON COLLEGE OF LAW
SYLLABUS FOR
INTERNATIONAL ANTI-CORRUPTION LAW
FOR BUSINESS, FINANCE & DEVELOPMENT
LAW-7950-001, 2 CREDIT HOURS
FALL 2015
PROFESSOR:
CONTACT INFORMATION:
OFFICE HOURS:
NANCY Z. BOSWELL
boswell@wcl.american.edu (preferred method of contact)
By appointment. Students are encouraged to contact me by email or
before/after class.
CLASS SCHEDULE:
Tuesdays, starting August 25th, from 4:00 PM until 5:50 PM.
COURSE DESCRIPTION:
Corruption in government, politics, business, sports and other aspects of life – and efforts to combat it
-- are front-page news around the world. At the same time, an evolving, comprehensive international
anti-corruption legal framework and enhanced cooperation among authorities is exerting a profound
impact on governments, private sector, non-profits and development assistance communities – and the
lawyers advising them.
This course will analyze causes and consequences of corruption, international anticorruption
conventions criminalizing transnational bribery and enhancing public sector transparency, integrity
and accountability and explore the extent of and challenges to enforcement. It will also discuss private
sector compliance programs, development assistance integrity measures and sanctions programs, and
multilateral and multi-stakeholder transparency initiatives.
The course 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 seminar is open to LLM students and to upper level JD students who have taken international law
and basic criminal law courses.
EVALUATION/GRADING:
Evaluation/grading will be based on class attendance and active participation in discussions of
required reading (25%), a substantial research paper of 20-25 pages (65%) and two in-class
presentations (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 topic selection, outlines and
draft papers. Final papers will be due by the start of Reading Week.
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 below.
As reading assignments may change, please check MyWCL regularly for updates in advance of
class.
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 25TH – 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) https://www.imf.org/external/pubs/ft/fandd/1998/03/pdf/gray.pdf
TI 2014 Corruption Perceptions Index, https://www.transparency.org/cpi2014/results
TI Global Corruption Report 2006 - Corruption in the Health Sector (Read
Corruption in Kenya’s National AIDS Control Council, pgs. 103-109, 112-115)
http://www.transparency.org/research/gcr/gcr_health
SEPTEMBER 1ST – CORRUPTION IN OPERATION: 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 8TH – US LAW PROHIBITING FOREIGN BRIBERY: FOREIGN CORRUPT PRACTICES ACT
Reading:
- FCPA Resource Guide, pgs. 10-46, 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 2125, 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
2
Optional:
- Siemens AG Litigation Release No. 20829
http://www.sec.gov/litigation/litreleases/2008/lr20829.htm
SEPTEMBER 15TH – US Law: A Prosecutor’s Perspective on the FCPA & Emerging Issues
(Guest Lecturer: James Koukios, Senior Deputy Chief, Fraud Section, Criminal
Division, Department of Justice - INVITED)
Investigations and prosecution under FCPA and other US laws, decisions to prosecute,
negotiated settlements, voluntary disclosure, multijurisdictional enforcement,
whistleblower rules and bounty.
Reading:
FCPA, A Resource Guide to the U.S. Foreign Corrupt Practices Act, Pgs. 48-49, 5255, 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
Indictment, United States v. Esquenazi,
http://www.justice.gov/criminal/fraud/fcpa/cases/esquenazij/12-08-09esquenaziindict.pdf
Appellate Decision, United States v. Esquenazi, No. 11-15331
(11th Circuit) http://media.ca11.uscourts.gov/opinions/pub/files/201115331.pdf
Optional:
-
Avon Deferred Prosecution Agreement,
http://www.justice.gov/criminal/fraud/fcpa/cases/avon-products-china/avon-dpa-filestamped.pdf, pgs. 1-19.
“SEC Adopts Rules to Establish Whistleblower Program,” SEC Press Release, May
25, 2011,http://www.sec.gov/news/press/2011/2011-116.htm
SEPTEMBER 22RD – FOREIGN LAW ON TRANSNATIONAL BRIBERY
(Guest Lecture: Kathryn Nickerson, Senior Counsel, Office of the Chief Counsel
for International Commerce, U.S. Department of Commerce - INVITED)
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, pgs. 6-29. http://www.oecd.org/daf/antibribery/ConvCombatBribery_ENG.pdf
- The UK Bribery Act of 2010,
http://www.legislation.gov.uk/ukpga/2010/23/pdfs/ukpga_20100023_en.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
3
Optional:
OECD Working Group on Bribery Annual Report 2014, pgs 8-11, 21-24, 51-65,
http://www.oecd.org/daf/anti-bribery/WGB-AB-AnnRep-2014-EN.pdf
SEPTEMBER 29TH - INDUSTRY SECTOR INITIATIVES
Students to select topic for brief in-class presentation
Readings on distinct challenges and approaches in diverse sectors:
- “Corruption in the Petroleum Sector,” pgs. 191-210, The Many Faces of Corruption,)
E. Campos, G. Ware, Ed.
-
Corruption in the Petroleum Sector, (EITI) Pgs. 210-215;
“The EITI Standard, “July 2013, pages 8-42,
www.eiti.org/files/English_EITI%20STANDARD_11July_0.pdf
-
Disclosure of Payments by Resource Extraction Issuers, SEC Final Rule,
www.sec.gov/rules/final/2012/34-67717.pdf
-
New Disclosure Requirements for extractive industry and loggers of primary forests,
European Commission Memo, 12 June 2013, www.europa.eu/rapid/pressrelease_MEMO-13-541_en.htm?locale=en
Directive 2013/34/EU of the European Parliament and of the Council, paras. 44-53,
http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:182:0019:0076:EN:PDF
-
“Anti-bribery and corruption systems and controls in investment banks” Financial
Services Authority, March 2012, http://www.fsa.gov.uk/pubs/other/anti-briberyinvestment-banks.pdf
-
Wolfsberg Anti-Corruption Guidance (2011), pgs. 1-4, Appendix 2, www.wolfsbergprinciples.com/standards.html
-
“Annotated Water Integrity Scans,” pgs. 3-27,
http://www.waterintegritynetwork.net/index.php?option=com_mtree&task=att_downl
oad&link_id=15&cf_id=61
-
“The Construction Sector Transparency Initiative,” COST website: The Challenge,
Objectives, Principles, Essential Features and Briefing Note 3,
http://www.constructiontransparency.org/
-
“Building Integrity and Countering Corruption in Defense & Security,” http://www.tidefence.org/publications/88-building-integrity-and-reducing-corruption-in-defenceand-security--20-practical-reforms, pgs. 8-15, 32-35, and peruse www.tidefence.org/our-work
-
“Fraud, Corruption and Collusion in the Roads Sector,” pgs. 1-3, 11-15, 17-33,
www.worldbank.org
4
-
“Preventing Corruption in Humanitarian Operations,” Selections from Programme
Support Functions & Corruption Through the Program Cycle,
www.transparency.org/whatwedo/pub/handbook_of_good_practices_preventing_corru
ption_in_humanitarian_operations
OCTOBER 6TH - PRIVATE SECTOR ETHICS & COMPLIANCE PROGRAMS & PRACTICE
Reading:
FCPA, A Resource Guide to the U.S. Foreign Corrupt Practices Act, Pgs. 56-67,
Department of Justice, November 2012.
2014 Federal Sentencing Guidelines Manual:
Chapter Eight (8A1.1 only): http://www.ussc.gov/guidelines-manual/2014/2014chapter-8#8a11 and
Effective Compliance and Ethics Program (8B2.1): http://www.ussc.gov/guidelinesmanual/2014/2014-chapter-8#8b21
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/petersong-information.pdf
OECD Good Practice Guidance on Internal Controls, Ethics and Compliance,2010
OECD Recommendation, Annex II http://www.oecd.org/investment/antibribery/anti-briberyconvention/44884389.pdf
“After Bribery Scandal, High-Level Departures at Walmart,” New York Times, June
4, 2014.
Optional:
The Bribery Act 2010: Guidance about commercial organizations preventing bribery,
pgs. 20-31,
http://www.justice.gov.uk/downloads/legislation/bribery-act-2010-guidance.pdf
OCTOBER 13TH – ADDRESSING PUBLIC SECTOR CORRUPTION: ANTI-CORRUPTION CONVENTIONS
Reading:
- United Nations Convention Against Corruption, (with particular focus on Chapter II,
Chapter III, Articles 15-26, 33-35, 40, Chapter V, Articles 52,57),
www.unodc.org/unodc/en/treaties/CAC
- Mechanism for the Review of Implementation of the UNCAC-Basic Documents, pgs 411, www.unodc.org
- Federative Republic of Brazil, Final Report, Mechanism for Follow-Up on the
Implementation of the Inter-American Convention Against Corruption,
Recommendations, Pgs 50-63,
http://www.oas.org/juridico/PDFs/mesicic4_bra_en.pdf
- GRECO Evaluation Report on the Russian Federation, Theme I, pgs. 18-30, para. 49
to end,
http://www.coe.int/t/dghl/monitoring/greco/evaluations/round3/GrecoEval3(2011)6_R
ussianFed_One_EN.pdf
Optional:
- USA UNCAC Self Assessment,www.state.gov/documents/158105.pdf
- UN Convention Against Corruption, U4 AntiCorruption Resource Centre, various
documents,
http://www.u4.no/home/SphinxSearchForm?Search=uncac&locale=en_US
- Technical Guide to the UN Convention Against Corruption
5
http://www.unodc.org/documents/corruption/Technical_Guide_UNCAC.pdf
OCTOBER 20TH -- THE ROLE OF FINANCIAL INSTITUTIONS
(GUEST LECTURER: HEATHER LOWE, GLOBAL FINANCIAL INTEGRITY)
Money laundering and corruption, bank secrecy, offshore havens, beneficial
ownership.
Reading:
- “Laundering the Proceeds of Corruption,” FATF Report, July 2011, http://www.fatfgafi.org/media/fatf/documents/reports/Laundering%20the%20Proceeds%20of%20Cor
ruption.pdf, pgs. 16-34.
- Illicit Financial Flows, http://www.gfintegrity.org/issue/illicit-financial-flows/
- Anti-Money Laundering/Combating the Financing of Terrorism – Topics
http://www.imf.org/external/np/leg/amlcft/eng/aml1.htm
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
- The Great Rip Off, Global Witness, Read Summary and Recommendations &
Conclusions, http://www.globalwitness.org/greatripoff/
Reference:
- FATF Recommendations February 2012, pages 4-5, 11-30.
- Corruption: A Reference Guide and Information Note on the use of the FATF
Recommendations to support the fight against corruption, www.fatf-gafi.org
Optional:
-
-
“When U.S. Targets Foreign Leaders for Corruption, Recovering Loot is a Challenge,
James Grimaldi, October 10, 2014, Wall Street Journal,
http://online.wsj.com/articles/u-s-reaches-34-million-corruption-settlement-withequatorial-guinea-official-1412948259
“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/
“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-delaware-thrives-asa-corporate-tax-haven.html?pagewanted=all
T. S. Greenberg, Politically Exposed Persons: A Guide to Preventive Measures for the
Banking Sector, The World Bank
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
OCTOBER 27TH - STOLEN ASSET RECOVERY
(GUEST LECTURER: LISA BOSTWICK, WORLD BANK/UNODC STOLEN ASSET
RECOVERY INITIATIVE - INVITED)
Reading:
-Fighting “Dirty Money” and Illicit Financial Flows to Reduce
6
-
Poverty, http://www.worldbank.org/en/results/2013/04/04/helping-countriesestablish-transparent-financial-systems-and-robust-mechanisms-for-asset-recovery
Stolen Asset Recovery: Toward a Global Legal Architecture for Asset Recovery,
pages iii-viii, 14-20,
http://www.unodc.org/documents/corruption/Publications/StAR/StAR_Publication__Global_Architecture.pdf
NOVEMBER 3RD - ‘SOFT LAW’: ANTI-CORRUPTION & TRANSPARENCY INITIATIVES
Multilateral trade, governmental forums and ‘dialogues’ promoting transparency,
whistleblower protection and other anti-corruption measures.
Reading:
- G20 Anti-Corruption Action Plan, www.g8.utoronto.ca/g20/2010/g20seoulanticorruption.pdf
- 2015-2016 G20 Anti-Corruption Action Plan, https://g20.org/wpcontent/uploads/2014/12/2015-16%20_g20_anti-corruption_action_plan_0.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/Open_
Data_Charter.pdf
- 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.pd
f
- Deauville Partnership: Action Plan on Governance & Anti-Corruption (Handout)
NOVEMBER 10TH - SUSPENSION & DEBARMENT
Debarment of corrupt contractors as a procurement anticorruption tool: US federal system, multilateral
banks (MDBs).
Reading:
- World Bank Guidelines on Preventing and Combating Fraud and Corruption in
Projects Financed by IBRD Loans and IDA Credits and Grants,www.worldbank.org
The World Bank Sanctions Board Decision No. 47 (Sanctions Case No. 121) issued
May 30, 2012,
http://siteresources.worldbank.org/EXTOFFEVASUS/Resources/WebsiteDecision47.
pdf
Federal Acquisition Regulation: Debarment, Suspension and Ineligibility, Sub-part
9.4, https://www.acquisition.gov/far/current/html/Subpart%209_4.html
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
Optional:
- INT Annual Report, Fiscal 2014, World Bank Integrity Unit & Debarment, pgs 18-28,
7
-
32-34, http://siteresources.worldbank.org/EXTDOII/Resources/5889201412626296780/INT_Annual_Update_FY14_WEB.pdf
“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-of- ethicsgovernment-scrutiny_11.pdf
NOVEMBER 17TH & 24TH – PRESENTATIONS & DISCUSSIONS OF PAPERS
8