How to Sleep Soundly and Avoid Bribes: Mitigating Chinese and American Corruption Risk in the Context of EB-5

While the United States' Foreign Corruption Practices Act (FCPA) prohibits U.S. entities from paying bribes to foreign officials abroad, China's Anti-Unfair Competition Law and Criminal Law together cover bribery of both public and private individuals by foreign or domestic actors in China.

At a time when both countries' governments are prioritizing the fight against corruption, one cannot ignore the many potential bribery-related pitfalls presented by the numerous trans-Pacific exchanges that drive the EB-5 process. The first step in addressing the issue is understanding one's role in the EB-5 industry and the unique compliance challenges it presents.  Additionally, a comprehensive anti-corruption compliance program to mitigate such risks can help ensure that you are protected from costly government fines, possible prison sentences, and sleepless nights. 

The behavior of the agents, brokers, issuers, and investors you work with will make or break your EB-5 business. As with all investments, you can protect yourself by understanding what risks are associated with doing business with each entity involved. This article explains the corruption risks and government concerns and provides six proactive steps you can take to minimize such risks in your EB-5 business.