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anti-corruption

Recipe for Anti-Corruption Successes: Due Diligence, Diverse Messaging

Todd Neff May 08, 2012

Much goes into doing anti-corruption properly, but there are four broad categories that top companies focus on: assessing corruption risks, devising controls against them, implementing those controls and procedures with the local workforce, and then following up with constant monitoring. Inside, more lessons for building an effective anti-corruption program.

Walmart, in Damage Control Mode, Appoints Global FCPA Head

Joseph McCafferty April 25, 2012

Walmart shifted into full damage control mode last week, following allegations of a massive bribery and corruption campaign at its Mexico operations. It has issued a statement on the charges and announced it will appoint a global FCPA compliance chief along with making other "enhancements" to its FCPA compliance practices. Details inside.

Finding the Corruption Needle in the Haystack

Carole Switzer April 24, 2012

Every organization should have a strong anti-corruption program that includes detection systems and processes and a response plan to assess, investigate, and resolve issues. Inside, the latest installment of our GRC Illustrated series outlines the major steps for implementing and refining a corruption investigation process.

The High Cost of FCPA Investigations

Jaclyn Jaeger April 17, 2012

Forget about fines and penalties to settle a Foreign Corrupt Practices Act investigation; simply conducting one can run into the hundreds of millions of dollars. Just ask Avon: The cosmetics company has spent $249 million since 2009 to investigate charges of FCPA violations. Inside are more examples of those racking up massive FCPA costs and tips to hold down expenses.

Building an Effective Global Anti-Corruption Program

Jaclyn Jaeger March 20, 2012

What are the hallmarks of a best-in-class anti-corruption compliance program? Anti-corruption experts cite five standard elements: a risk assessment, one global set of standards, wise use of technology, a strong tone-at-the-top, and constant monitoring of effectiveness. Companies that incorporate these characteristics will go a long way toward reducing corruption risks. More inside.

Anti-Corruption Programs Enable Business Agility

Carole Switzer December 20, 2011

One of the most frequently asked questions about managing corruption risk demonstrates the compliance profession's passion for benchmarking: "What do companies with the best anti-corruption programs do differently?" The answer is less about process or technology, at least not directly, than it is about philosophy and vision. Inside, our GRC Illustrated series returns with this look at anti-corruption programs.

Germany Creates a Standard for Compliance Assurance

Neil Baker August 30, 2011

After several high-profile compliance failures in Germany, many companies there are looking for help building compliance systems and asking audit firms to assure that they are suitable. But audit firms, fearing liability, had been reluctant to provide that assurance. Now, a new standard from a German accounting organization provides a roadmap for auditors to follow and guidelines for completing the assurance process.

The Dos and Don'ts of Corporate Hospitality

Jaclyn Jaeger July 26, 2011

Vigorous enforcement of the Foreign Corrupt Practices Act is causing some companies to second-guess their compliance efforts. In the latest example, a company recently asked the Justice Department for an advisory opinion on corporate hospitality questions that had already been clearly answered years ago. The Justice Department's (repeat) answer is inside.

Canada Takes Landmark Anti-Bribery Enforcement Action

Jaclyn Jaeger July 12, 2011

Move over, FCPA—your northern cousin, the Corruption of Foreign Public Officials Act, just took a big step into adulthood. Canadian officials have reached their first-ever plea deal with a company for overseas bribery, and more enforcement is ahead. "For a U.S. company that may have thought anti-bribery was not an issue in Canada ... it is now," Toronto lawyer John Boscariol says. More inside.

The BRIC Wall of Anti-Corruption Law

Jaclyn Jaeger July 06, 2011

Britain's Bribery Act went into effect on July 1, but that's not the only new anti-bribery hurdle compliance departments are facing. Brazil, Russia, India, and China have all either enacted or proposed new anti-bribery legislation, and a slew of other countries have measures in the works. In short, anti-corruption compliance just got a whole lot more complex. Details inside.

Lessons From SEC's First Deferred Prosecution Agreement

Jaclyn Jaeger June 21, 2011

Last month the SEC signed its first-ever deferred-prosecution agreement with a company. The intent of the SEC's DPA is "essentially to create incentives for corporate self-policing, self-reporting, and self-remediations," says John Sturc, partner at law firm Gibson, Dunn & Crutcher. But is self-disclosing your way into a DPA really worth the risk? Not everyone is sure.

The Summer of FCPA

Bruce Carton June 14, 2011

Enforcement actions of Foreign Corrupt Practices Act violations are intensifying as the summer begins. In May alone, several notable FCPA cases transpired, including the first ever jury conviction of a corporation, the first deferred-prosecution agreement by the Securities and Exchange Commission, and challenges to the law's defining language. Inside, Columnist Bruce Carton recaps the latest.

FCPA Officers Aim for Global Anti-Corruption Program

Jaclyn Jaeger June 01, 2011

Compliance officers at CW 2011 debated the challenges of the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act, and mapped out strategies to craft one common anti-bribery policy that could be applied worldwide as more and more risks pile up around corruption and improper payments. The full discussion is inside.

Latest FCPA Trial Sheds New Light on State-Owned Companies

Jaclyn Jaeger May 24, 2011

Executives at Lindsey Manufacturing had hoped to challenge the Justice Department on its assertion that the Foreign Corrupt Practices Act applies to payments made to employees of state-owned entities. The bad news: They lost. The good news: The judge presiding over the case issued a clarification on the issue, which could help defenses in future FCPA cases. Details inside.

Lessons From J&J's $70 Million FCPA Settlement

Arielle Bikard April 19, 2011

Earlier this month Johnson & Johnson settled a Foreign Corrupt Practices Act case with the Justice Department for $70 million. The company scored points for having an effective compliance program, but will now be required to audit its anti-corruption program. It's just the latest case in a crackdown on FCPA violations. Details inside.

China Passes Anti-Bribery Law

Richard Meyer April 12, 2011

At just two lines of text, China's new anti-bribery law is open for interpretation—but it is certain to complicate corporate anti-bribery efforts. "The government is concerned that corrupt officials are besmirching the good name of the Communist party," says Amy Sommers, national China partner for law firm Squire, Sanders & Dempsey.

In Court, FCPA Comes Under Fire

Jaclyn Jaeger April 05, 2011

The question of whether state-owned companies fall within the scope of the Foreign Corrupt Practices Act is finally getting a hearing in court. Three cases over so-called "foreign instrumentalities" are pending this spring; the question is urgent, Butler University law professor Mike Koehler says, because companies are spending "a lot of wasteful money to comply with a law based [solely] on what the Justice Department says." Details inside.

Bribery Act Guidance Retreats, Still Fails to Deliver Clarity

Neil Baker April 05, 2011

The British government has finally given prosecutors the green light to start enforcing the country's tough new Bribery Act starting July 1—and also published eagerly awaited guidance suggesting that the anti-corruption law may not be enforced so toughly. One thing that is clear: Compliance departments looking for clarity are out of luck. Details inside.

Auditors Plead for Protection From International Risk

Tammy Whitehouse March 09, 2011

If auditors weren't already jittery enough about litigation risk, they're getting even more nervous over the possibility that litigation related to antifraud provisions in U.S. law could include securities fraud claims crossing international borders. That has prompted seven major firms, including all of the Big 4, to pool their legal resources and plead for protection.

DoJ Assistant Attorney General Warns on FCPA Breaches

Melissa Klein Aguilar November 17, 2010

Concerned about Foreign Corrupt Practices Act compliance? You should be.Detailing a "new era" of FCPA enforcement, a top Justice Department official said those worried about more aggressive anti-bribery enforcement "are right to be more concerned.""Our FCPA enforcement is stronger than it's ever been - and getting stronger," Assistant Attorney General...

U.S. Enforcement of FCPA Draws Scrutiny

Melissa Klein Aguilar November 02, 2010

U.S. anti-bribery enforcement efforts have come under heightened scrutiny, just as two new laws are expected to launch those efforts into overdrive.The Foreign Corrupt Practices Act, which makes it a crime for U.S. companies and their employees to pay bribes to foreign officials to obtain business abroad, ought to be...

FCPA Leniency Program Built on Antitrust Model?

Melissa Aguilar August 16, 2010

More summer reading for those with an interest in anti-corruption enforcement: The latest thinking on how federal prosecutors can encourage cooperation by rewarding companies for self-reporting transgressions of U.S. anti-bribery laws, courtesy of Baker & McKenzie partners Robert Tarun and Peter Tomczak.In their proposal for leniency for self-reporting and cooperation by companies that...

FCPA Research Stirs Debate on Voluntary Disclosure

Melissa Aguilar August 06, 2010

An academic paper is stirring up fresh debate about whether or not companies get any tangible benefit for confessing their Foreign Corrupt Practices Act violations to federal prosecutors.As part of their crackdown on corruption and bribery, Department of Justice officials frequently preach the benefits of voluntary disclosure of FCPA violations....

Former Deputy AG Seeks DoJ Enforcement Policy Change

Melissa Aguilar June 30, 2010

Top Justice Department officials have long said companies reap "meaningful" benefits from voluntary disclosure. If federal prosecutors really want to convince companies and encourage self-reporting, a change in enforcement policy is needed, says one former U.S. Deputy Attorney General.Whether companies reap real benefit from self-reporting violations, particularly in the area...

Warning, Tips From Justice Department's Grindler

Melissa Aguilar May 26, 2010

Corporate compliance, legal and risk professionals got a warning from a top Justice Department official, along with some advice on how to keep the companies they work for out of trouble.Acting deputy attorney general Gary Grindler made it clear that the agency is taking a no holds barred approach to...

OECD Guidance on Internal Controls, Ethics, Compliance

Melissa Aguilar March 08, 2010

The Organization for Economic Co-operation and Development has issued new guidance on internal controls, ethics, and compliance to help its member countries implement anti-bribery strategies.The OECD Working Group on Bribery has issued "Good Practice Guidance on Internal Controls, Ethics, and Compliance," which calls for companies in the 38 countries that...

U.S., EU Increase Cooperation on Crime Enforcement

Melissa Aguilar February 11, 2010

The increasing trend of cooperation between U.S. law enforcers and regulators and their overseas counterparts got another boost recently, with new agreements now in effect with the European Union that make it easier to extradite people charged with transnational crimes and allow more information sharing.The U.S. Department of Justice announced...

New OECD Stance on Facilitation Payments

Melissa Aguilar December 18, 2009

The Organisation for Economic Cooperation and Development has taken a new stance on facilitation payments, urging its member countries to encourage companies to ban or discourage their use.Such payments, known as "grease payments," are generally small payments to a government official to expedite a routine bureaucratic action, but are considered...

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