Extraterritorial Application Of Us Laws: An Overview Of The FCPA And The Alien Tort Statute And The Implications For The Mining Sector

The past several decades have seen the rapid expansion of multinational mining companies? exploration and production activities around the globe. This trend has resulted from a number of factors, including increased demand for resources as a result of worldwide economic growth, the diminishment of known and proven reserves, rising commodity prices, technology improvements, and the liberalization of investment regimes in developing countries with significant natural resources. With those opportunities, however, come associated risks and significantly increased legal compliance obligations that may be imposed by various bodies. That includes domestic regulations, as well as foreign civil and criminal laws with extraterritorial reach. A failure to adhere to those laws can have dire consequences, including substantial monetary fines and penalties, severe damage to a company?s reputation, and even jail time for individual company employees.