DIFFICULT AND DAUNTING: HANDLING A CROSS-BORDER ANTICORRUPTION INVESTIGATION
It is estimated that more than $1 trillion is paid each year in bribes around the world, and that $2.6 trillion is lost to corruption. This accounts for around 5 percent of global GDP – and the true figure is potentially even higher. The scale of the problem and the damage caused will continue to grow.
Perhaps unsurprisingly, there has been a heightened focus on anticorruption efforts in recent years. Key legislation includes, for example, the US Foreign Corrupt Practices Act (FCPA), the UK Bribery Act and France’s Sapin II, among others. Under these regimes, there is an expectation that companies will have robust compliance programmes in place to combat corruption. They also need to cooperate with authorities in order to secure cooperation credits to reduce potential penalties.
Problems and pitfalls
Due to the global nature of modern financial crime, cross-border investigations are increasingly common. As such, it is imperative that companies can deal effectively with foreign regulators and other authorities. This can often be challenging, however. Navigating dialogue with multiple enforcement agencies simultaneously can be a difficult and daunting task for legal and compliance teams.
But handling these situations well can be the difference between reaching a fair outcome or causing more trouble for the company in the long run. Legal and reputational risks could jeopardise the financial health of a business. With more regulatory bodies launching anticorruption investigations that span borders, companies need to prepare.
Oct-Dec 2023 Issue
Richard Summerfield