Bribery

Finding FCPA Violations in Employee Expense Reports

May 01, 2012

Travel and entertainment expenses have long been a haven for abuse, but since the dollar amounts are often insubstantial, companies don't always pay close attention to them. Companies are now finding, though, that they can be a conduit for bribes. "If T&E goes unchecked, it can make a company susceptible to allegations of corruption," says Andrew Levi, head of the Miami office at investigation firm Nardello & Co. How to root out fraud? More inside.
 

Walmart, in Damage Control Mode, Appoints Global FCPA Head

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

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.
 

Targeting the Demand for Facilitation Payments

March 27, 2012

A group of energy companies is banding together to press countries where demand for facilitation payments is high to adopt new practices that combat such requests. Among the solutions the group is pursuing are better documentation of government service fees and procedures, automated payment processes, and more training for officials. The group now hopes to expand beyond its own industry. Details inside.
 

Anti-Corruption Programs Enable Business Agility

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.
 

SciClone Raises Standards, and Eyebrows, With FCPA Deal

November 29, 2011

SciClone Pharmaceuticals, a middle-weight drug development business with only 260 employees, struck a memorable blow for corporate compliance this month: The company agreed to profound changes in its anti-corruption program solely to settle a shareholder lawsuit. "I'm not aware of any other case, certainly in the FCPA area, where this sort of result has occurred," says Lucinda Low of the law firm Steptoe & Johnson.
 

Germany Creates a Standard for Compliance Assurance

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

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.
 

British Regulator Issues Record Corruption Fine

July 22, 2011

Britain's Financial Services Authority has slapped a record £7 million ($11.4 million) fine on one of the country's biggest insurance brokers for failing to have good internal controls to prevent corruption. The regulator said Willis Limited had not done enough to monitor payments to third parties that helped the broker win contracts in Russia and Egypt.
 

Courts Reject Claim that Bribery Raids Were Unlawful

July 14, 2011

The UK Serious Fraud Office can restart its bribery investigation into Alstom after the courts refused a legal challenge from two of the engineering company's directors.
 

The BRIC Wall of Anti-Corruption Law

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.
 

Fraud Chief Warns Foreign Companies as Bribery Act Goes Live

July 01, 2011

Britain's tough new anti-bribery legislation finally took effect today, and was greeted with a warning from the head of the Serious Fraud Office that foreign companies would be in his firing line.
 

FCPA Officers Aim for Global Anti-Corruption Program

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.
 

Fight Against Corruption Losing Momentum

May 27, 2011

International efforts to tackle bribery and corruption are losing momentum, according to Transparency International (TI), an anti-corruption group
 

Latest FCPA Trial Sheds New Light on State-Owned Companies

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.
 

Companies Lacking in Facilitation Payments Policies

April 26, 2011

An examination of the codes of conduct at 40 oil and gas companies finds that more than half don't address the controversial topic of facilitation payments, and only two prohibit the practice outright. With enforcement of the U.K. Bribery Act—which outlaws such payments—just a few months away, it may be time to review your policy on the topic. More analysis inside.
 

U.S. Execs Lack Bribery Act Knowledge

April 21, 2011

As the July 1 deadline for Britain to begin enforcing its tough new anti-bribery law approaches, many executives in the United States are unprepared. Three-quarters of U.S. business professionals surveyed said they were not familiar with provisions of the Bribery Act, according to research from Deloitte.
 

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

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

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.
 

Bribery Act Guidance Retreats, Still Fails to Deliver Clarity

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.
 

OECD Raises Concerns Over Germany's Anti-Bribery Controls

March 28, 2011

Though the OECD working group on bribery commended Germany for its crackdown on illegal payouts abroad, it also expressed concerns over light sanctions, underdeveloped corporate internal controls and external audits, and lack of whistleblower protection.
 

U.K. to Make Bribery Law Easier for Foreign Companies

March 21, 2011

According to recent press leaks, British authorities will make it easier for non-U.K. companies to comply with the Bribery Act. Reports say foreign companies won't fall under the scope of the Act simply because they are listed on the London Stock Exchange. They must also conduct business in the United Kingdom. More details inside.
 

Report: Compliance Risks Growing in Emerging Markets

February 15, 2011

Compliance and integrity risks are rising for acquisitions, investments, and joint ventures in emerging markets, a recent study by Deloitte finds. "Companies are either reevaluating the costs and benefits of these deals, or are scuttling those that present unacceptably high risks," says Ed Rial of Deloitte. More survey results inside.
 

OECD Attacks U.K. Bribery Delay

February 06, 2011

The Organization for Economic Cooperation and Development has criticized the U.K.'s decision to delay the start date of its long-awaited anti-bribery laws, branding the move "very disappointing."
 

U.K. Warns Cos. Against Paper Compliance on Bribery

September 20, 2010

The U.K. government has started consultation on how a key part of its new Bribery Act will work in practice, warning companies that they will need to “go beyond paper compliance” when the Act takes effect next April.Companies will face prosecution under the Act if staff or third-party agents pay...
 

U.K. Bribery Law Gets April 2011 Start Date

July 21, 2010

The U.K.’s new corporate offense of failure to prevent bribery will take effect from April next year, the country’s new government has announced.The offense came onto the statute book when the previous government finalized the Bribery Act 2010 in its last days in office this May, but a date for...
 

Jailed Corruption Whistleblower Wins Sentence Appeal

May 13, 2010

A U.K. appeals court has overturned a controversial decision to jail an executive who cooperated with the Serious Fraud Office in a high-profile corruption case.Robert Dougall, former marketing director at healthcare company DePuy International, pleaded guilty to corruption charges last month under a plea deal agreed upon with the SFO.The...
 

U.K. Modernizes Bribery Laws, Finally

April 09, 2010

The U.K. finally modernized its anti-bribery laws this week when Parliament approved long-awaited new legislation.The Bribery Bill had to be rushed through before Parliament shut down ahead of a General Election on May 6, but lawyers say there were no last-minute amendments of any note.However, some uncertainty remains about when...
 

Judge Puts U.K. Plea Deals in Doubt

March 30, 2010

The U.K. Serious Fraud Office’s strategy for tackling financial crime has been thrown into doubt after a senior judge criticized the plea deal that the agency reached with a company guilty of paying bribes.In his judgment on the case, Lord Justice Thomas, the U.K.’s deputy head of criminal justice, said...
 

Campaigners Lose Bid to Block BAE Plea

March 25, 2010

Two anti-corruption groups have lost their court battle to delay approval of a controversial plea bargain between the U.K. Serious Fraud Office and arms company BAE Systems.The defeat for protest groups Corner House and Campaign Against Arms Trade clears the way for BAE to plead guilty to charges it agreed...
 

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