International, Global Issues

Below is some of the most recent Compliance Week coverage of various global regulatory developments. Coverage includes analysis of EU directives, GAAP-IFRS accounting convergence, IASB pronouncements, exchange convergence, and more. Also see our searchable database of global rules, standards and guidance, which includes not only U.S. regulatory bodies like the SEC and FASB, but documents from the International Accounting Standards Board and European Union: Internal Market, as well.

Accounting Rules for Foreign Currency Raise Questions

July 19, 2011

As cross-border merger activity picks up and currency exchange rates fluctuate, many companies find that they need to brush up on accounting rules for foreign currency. "You wouldn't think it would cause headaches year after year, but we do see companies that have challenges," says Brian Jobe, a partner with Deloitte & Touche. More inside.
 

Regulators Talk Export Control

June 07, 2011

Three regulators at Compliance Week 2011 gave a wide-ranging talk on how companies can manage the complex world of export-control law. It's not easy, Justice Department lawyer Jonathan Poling admitted. "You can't ... just have 'Compliance in Canada' and 'Compliance in North America' and never have those two talking to each other," he said. More insight on compliance strategy directly from regulators inside.
 

Justice Department Targets Foreign Documents in Antitrust Probe

May 17, 2011

Defense attorneys are lashing out over an aggressive new tactic by the Justice Department to retrieve foreign documents by subpoenaing them from law firms that are involved in parallel civil lawsuits—which critics say is an over-reach of the department's subpoena power. The matter has split federal courts and is nearly certain to head to the U.S. Supreme Court. Details inside.
 

Regulators Cracking Down on Trade Sanction Violations

May 03, 2011

The Office of Foreign Assets Controls is getting aggressive in its enforcement against companies that violate economic and trade sanctions. The agency reeled in $1 billion in penalties from 2009 to 2010. Some companies run afoul of the rules by transacting with sanctioned individuals. "It's really important to know who you're selling to, and who those people are dealing with," says Erich Ferrari, founder of Ferrari Legal.
 

Delays and Difficulties Mar the Path to IFRS Adoption

May 03, 2011

A series of delays on accounting convergence projects will complicate the SEC's vow to decide this year whether to adopt International Financial Reporting Standards for U.S. companies. Indications of the SEC's thinking are hard to come by, but prognosticators say adoption won't happen anytime soon—if at all. More 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.
 

Libyan Sanctions Give Banks Compliance Headaches

March 22, 2011

After the Obama Administration imposed economic sanctions against Libya, U.S. banks uncovered $32 billion in tainted assets belonging to Libyan officials and the Libyan government. The funds now represent a compliance headache for financial institutions with serious penalties for non-compliance including potential jail time. Details inside.
 

Securities Enforcement and Litigation Goes Global

February 08, 2011

Countries around the world are now seeing an increase in the level of public and private efforts to enforce securities laws, from anti-corruption laws and insider-trading prosecutions to fledgling efforts to launch investor class-action lawsuits. Inside, Columnist Bruce Carton examines what the trend means for global companies.
 

An Expensive Lesson on FCPA Compliance

November 16, 2010

Compliance officers looking for the latest guidance on the Foreign Corrupt Practices Act might want to read a sweeping joint settlement reached earlier this month—which was bad news for the six companies involved, but drops plenty of strong hints about what the Justice Department wants to see in an FCPA compliance program.
 

Survey Spotlights Corruption in Globalized Legal Profession

November 09, 2010

A new survey has found widespread corruption in the legal profession around the world and serves as a stark reminder to companies about the potential risks posed by outside advisers.
 

IRS Seeks Input on Foreign Withholding Rules

October 19, 2010

Multinational corporations with foreign operations are facing new tax compliance headaches, thanks to the Internal Revenue Service and the Department of Treasury pursuing offshore accounts they suspect are hiding from U.S. taxes.
 

Guidance on Bribery Act Still Disappoints

October 12, 2010

The British government has begun to provide specific guidance on how companies can avoid prosecution under the country’s tough new anti-bribery laws, but it will be little comfort to compliance executives—especially those at U.S. companies, still unclear when they might face prosecution.
 

One Way Around an Onerous China Tax Law? Ignore it

September 28, 2010

Chinese tax authorities surprised Western companies last December with a new tax law aimed squarely at a standard legal mechanism to do business in China, the offshore holding company.
 

The Perils of Good Labor Standards in China

August 03, 2010

Labor standards in China have re-emerged as a concern for global corporations this summer, after a series of worker suicides this year at a sprawling electronics manufacturer that counts Apple, Dell, Hewlett-Packard, and many other Western companies among its customers.
 

U.K. Enforcement Agencies Brace for Shake-Up

June 29, 2010

Britain’s new coalition government is pushing ahead with its promise to dismantle the country’s Financial Services Authority and create a new agency to fight white-collar crime. But already concerns are emerging that the move could stall enforcement efforts, especially against insider trading.
 

Plea Deals Run Aground in British Courts

April 27, 2010

Last year the United Kingdom finally appeared to be delivering on its promise to crack down on bribery and corruption. The Serious Fraud Office scored its first-ever successful conviction of a company for fraud, and hope that would telegraph a clear message troubled corporations: agree to a plea deal with us, or face prosecution and heavy penalties.
 

Tips on Tax Compliance for Foreign Withholding Rules

April 20, 2010

The Internal Revenue Service and the Department of Treasury are moving ahead with new rules that will greatly expand the reporting and disclosure requirements for payments made to foreign financial institutions—but they are also taking unusual steps to solicit public comment on the new rules along the way.
 

Doing Business in Europe? Know Your Competition Law

Soriano, Guest Columnist John March 30, 2010

A senior business leader recently gave me high praise—for the compliance business, at least. “You’ve done a great job brainwashing us about the Foreign Corrupt Practices Act,” he said. “Now you have to do the same with EU Competition Law.”
 

U.K. Bribery Bill Poses Daunting Compliance Challenges

March 16, 2010

British lawmakers are poised to approve the most sweeping reforms of anti-bribery law in the United Kingdom in more than a century, creating a new anti-corruption regime that many believe will be sterner than even the United States’ dreaded Foreign Corrupt Practices Act.
 

Overseas Jurisdictions Step Up Anti-Trust Reviews

February 17, 2010

Warning to anyone planning a big merger or acquisition this year: You may need to alert regulators in Zambia.
 

EU Plans Governance Advances for 2010

January 05, 2010

2010 is shaping up to be a year where the European Union will implement previously planned measures to tighten the screws of financial regulation. The question is whether those efforts will line up with reform plans hatched by the G-20 or be diluted under pressure from lobbyists—and so far, the answer is “who knows?”
 

U.K. Struggles to Improve Narrative Reporting

December 22, 2009

A war of words is brewing in the United Kingdom—about how many words should go into corporate reports.
 

Slowly but Substantively, Japan Moves on Governance

Nagano Yuriko November 03, 2009

The people of Japan placed themselves under new national governance in August with the historic election of the Democratic Party of Japan. Now the DPJ and Japanese regulators seem likely to move forward with changes to corporate governance as well.
 

Britain Gets Serious on Corruption Enforcement

October 27, 2009

Earlier this fall, the United Kingdom scored its first-ever conviction against a company for overseas bribery, 10 years after the country first pledged to crack down on such abuse. Now more cases—and legislation—are on the way, and Britain may finally be delivering on its promise to get tough on corruption.
 

Corporate India Strives to Hit 2011 IFRS Goal

September 29, 2009

When India announced in 2007 that it would fully adopt International Financial Reporting Standards by 2011, nobody doubted it would. Two years later … nobody is quite so sure.
 

Positive Signs From China on Regulation

August 04, 2009

Compliance executives should take note of a spate of new tax rules from the Chinese government for two reasons: first, the nuts-and-bolts headache of obeying the laws; and second, for the deeper message Chinese regulators are telegraphing about how they will handle U.S. companies doing business there.
 

Plea Bargain Sets New Enforcement Era in U.K.

July 28, 2009

Prosecution of corporate fraud has just taken a giant step forward in the United Kingdom—thanks to a prosecution that didn’t actually happen.
 

State Secrets, Business Information in China

July 28, 2009

The broad contours of the dispute between mining conglomerate Rio Tinto and the Chinese government—hardball business tactics, espionage charges, four Rio employees under arrest—are enough to leave any compliance officer unsettled. The spat itself is likely to be settled via quiet diplomacy between China, Australia (Rio Tinto’s home country), and Rio’s boardroom.
 

Japan Renews Governance Reform Conversation

Nagano Yuriko May 19, 2009

Japanese officials, business leaders, and scholars have begun a wide-ranging review of corporate governance there, which could lead to significant changes in corporate law and governance requirements for public companies.
 

Britain Proposes SOX-Like Change to Tax Reporting

May 12, 2009

Large British companies and foreign businesses that pay U.K. taxes are suddenly facing a big increase in their tax compliance costs, thanks to a surprise proposal announced in the government’s recent budget.
 

Financial Reporting Summit Outlines Problems

April 07, 2009

World leaders at the G-20 summit in London last week pledged to make accounting reform a pillar of their efforts to restore stability to the global financial system. Accounting rulemakers meeting in the city at the same time, however, voiced concerns that politicians were pushing reform too fast and in the wrong direction.
 

EU Regulators Striking a Stronger Tone

April 07, 2009

When U.S. government officials met their European counterparts in London last week for the G-20 summit meeting, they were no doubt shaken by some of the more radical sentiments expressed by protesters in the streets outside.
 

Once Feared, China Labor Law Eases Its Bite

March 10, 2009

The Chinese Labor Contract Law went into effect on Jan. 1, 2008, amid suspicions that it might be used to force Western companies into compliance with the whim of whatever Chinese regulator happened to use it.
 

U.S. Regulatory Arm Stretches to U.K.

March 03, 2009

The long arm of U.S. regulatory compliance is now reaching ever more deeply into overseas corporations—even, when necessary, reaching over the shoulder of local regulators not enforcing their own standards to U.S. liking.
 

Satyam: Is Indian Governance to Blame?

February 03, 2009

In most developing nations, the collapse of Satyam Computer Services would follow a well-worn arc: poor corporate governance in a poorly regulated land leads to criticism from the West and promises of swift action from the government.
 

China Whets Its Enforcement Appetite

January 12, 2009

For most of the last decade, China seemed to take a light approach on regulatory enforcement; it worried that strict application of its many laws, rules, and regulations would scare off investors when the economy could not afford to lose foreign money and manufacturing.
 

Struggling for Coherent Reforms Globally

January 06, 2009

Expect 2009 to be hectic year for international corporate governance and compliance.
 

Shop Talk: Best Practices on Fraud Risks

December 16, 2008

When it comes to managing fraud risk, compliance and internal audit executives say the toughest challenge isn’t winning support from the board or top management; it’s winning over everyone else in the company.
 

Global Turmoil Triggers EU Regulatory Reform

November 18, 2008

In the shadow of the global financial crisis, the European Parliament has plunged into a wholesale overhaul of Europe’s legislation to supervise its financial markets. From banks to insurance companies to credit-rating agencies, all are in the crosshairs of a nearly unanimous call for reform.
 

Japan Moves Closer to International Accounting Standards

Nagano Yuriko November 11, 2008

The United States is not the only nation moving in fits and starts down the long—long—road to International Financial Reporting Standards. On the other side of the world, Japan is making the same trek, and finding the same experience: A consensus on global accounting standards isn’t easy.
 

EC on Fair Value; Sustainability Reporting Rises; More

November 11, 2008

The European Commission has decided not to make unilateral changes to the way that the fair-value rules in International Financial Reporting Standards are applied in Europe—an idea that would have undermined the authority of the International Accounting Standards Board.
 

Cross-Border Securities Regs; FSA on CEO Pay; More

October 21, 2008

European Commission President José Manuel Barroso has asked a panel of experts to suggest “far-reaching proposals” to improve cross-border securities regulation within the European Union. The aim is to fix failings exposed by the credit crunch.
 

Increased Enforcement of FCPA Violations

October 07, 2008

Note to compliance officers: If you aren’t already seriously worried about being ensnared by the Foreign Corrupt Practices Act, you should be.
 

FSA Short-Sale Ban; CSA Revamps Exec Pay; ERM; More

October 07, 2008

British financial firms face a tougher regulatory environment after Prime Minister Gordon Brown pledged to “clean up” business practices in the City of London.
 

China’s SOX: A Pipe Dream at Best

September 30, 2008

If Chinese authorities could have their way, all public companies in that country would begin complying with “CSOX”—China’s version of governance and financial reporting akin to the Sarbanes-Oxley Act in the United States—by the middle of next summer, as planned.
 

EU Auditors: EuroSox Misses the Mark

September 16, 2008

Public companies in the European Union’s 27 member states should be complying with “EuroSox” by the end of the summer to establish a pan-European framework for governance and financial reporting akin to the Sarbanes-Oxley Act in the United States.
 

IFRS Adoption: The China Experience

September 03, 2008

The United States isn’t the only economic superpower finally lurching into the global accounting age. On the other side of the world, China is doing much the same.
 

PwC on Pay; EU Shirks Audit Reform; More

September 03, 2008

Non-executive directors at British companies are still enjoying tidy pay rises, but the rate of increase has leveled off and directors are expected to work harder for their money, according to a study by PricewaterhouseCoopers.
 

When Investigations Hit the BRIC Wall

August 26, 2008

Massive in land size, population, and economic power, the BRIC countries—Brazil, Russia, India, and China—are global giants in every sense of the phrase. That includes the potential to give compliance executives giant headaches.
 
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