FCPA practitioners like to focus their attention on “sexy” compliance issues. Internal controls are rarely discussed. It can be a mind-numbing topic. When it comes down to it, internal financial controls are the most important protection against bribes (and fraud). A company with effective internal controls is taking an important step in deterring illegal payments. Two key components of internal controls are: (1) travel and...
In case anyone has noticed, the sky has not fallen. The UK Bribery Act has not lead to the downfall of global business. In fact, here is a profound grasp of the obvious — the UK Bribery Act really has not had much of an impact at all. I am not criticizing the professionals at the Serious Fraud Office, but they have a tough job...
The American public may not listen very closely to what Congress has to say but the Department of Justice has listened — and is continuing to listen. The question from Congress has been very consistent — why is DOJ not prosecuting individuals for criminal FCPA violations? Starting in late 2011, DOJ responded to Congress, and is getting set to speak even louder on this issue. ...
Recent events surrounding FCPA enforcement have reminded everyone that DOJ’s so-called “set-backs” were only temporary, if any at all. The FCPA paparazzi will be sure to exaggerate and overplay “trends” and recent enforcement actions. It is hard to really assess FCPA enforcement trends. FCPA cases take a long time from an initial voluntary disclosure to a settlement. In between are twists and turns, an internal...
In case you did not know it, Tom Fox is a big baseball fan (poor Tom roots for the Astros; of course, poor me for rooting for the Nationals). I am sure Tom never thought that Roger Clemens would be denied the Hall of Fame, much less on criminal trial for lying to Congress. John Edwards has certainly had a fall from grace – from...
Everyone likes to focus on the BRIC countries. Article after article focuses on the risks in the BRIC countries. Africa poses the delicate mix of opportunity and corruption risks. Many of the FCPA enforcement actions have focused on Africa, particularly Nigeria, Angola and Kenya. Many African countries are experiencing significant economic growth especially in the oil and extractive industries. Corruption risks are high because of...
I am not anticipating that the Justice Department’s soon-to-be-released guidance is going to satisfy anyone. However, DOJ has an opportunity to do some good, and I expect they will take it. I have the utmost respect for DOJ, especially the career prosecutors (I was one for 17 years), and I know they will try and do the right thing. There are a lot of issues...
In the aftermath of the New York Times investigative reporting, one thing is clear — Big is not necessarily better. What do I mean by that? You can take all the compliance resources you want, throw them at a problem and come up with zilch on the compliance front. The message for Fortune 100 companies is loud and clear. You may have wonderful compliance programs,...
It is difficult enough to serve on a corporate board. It is not a job for the weak stomached. Corporate boards have faced unprecedented risks. Aside from general board duties, regulators are increasing scrutiny of board committees, especially audit committees. In the early 2000s, audit committees were under the microscope after a series of corporate fraud scandals resulted in Sarbanes-Oxley reforms, focusing on internal controls,...
The FCPA paparazzi has a standard list of anti-corruption risks: government interactions, third-party due diligence, gifts and entertainment, and mergers and acquisitions/joint ventures. Notice that charitable giving is not included on that list of greatest hits. Gifts to charities can be a clever disguise of an improper payment to a government official or a relative of a government official. Like gifts and entertainment, a...
