EU enforcement of anticorruption laws is intensified. Prosecutions under the U.S. Foreign Corrupt Practices Act (FCPA) have increased dramatically in recent years. Penalties for violations are stepped up as enforcement action thru intergovernmental cooperation is expanding.

Pursue, prosecute, and punish the corruption perpetrators seem to be the new GRC focus. Some recent high-profile cases have shown, that companies that do not take steps to prevent their personnel and agents from engaging in corrupt acts, or do not adequately respond to corruption allegations, can face extraordinarily severe consequences. Conversely, companies that maintain strong anticorruption controls, document their diligence, and cooperate with authorities when appropriate, are generally better positioned to mitigate the damage to their financial health, business operations, and reputation should corruption issues arise.

Recently a UK Firm was fined £6.6 Million for Corruption. FCPA focus is alive, licking and lives in Europe.

The first firm to be prosecuted in Britain for overseas corruption and breaching United Nations sanctions is to pay 6.6 million pounds in fines and penalties, the UK's Serious Fraud Office (SFO) said.

Bridge manufacturer Mabey & Johnson was convicted of two corruption charges relating to contracts in Jamaica and Ghana between 1993 and 2001.

The Company also pleaded guilty to applying for contracts under the Iraq oil-for-food programme in 2001-02 in breach of U.N. sanctions.

London's Southwark Crown Court was told the company paid out 1 million pounds in sweeteners it thought helped it to win contracts worth 60 million pounds as reported by several UK newspapers.

We suggest that all companies look into their Corruption programs and create a base for a fresh start, having wiped the slate clean of possible corruption charges and offences and avoid disastrous and damaging PR.

There are many signs of the renewed vigor on the part of the authorities to tackle overseas corruption. Tough new legislation currently before international parliaments requires corporations to be alert to the risks of corruption and to ensure that they have adequate systems and controls in place. Here are a few pointers.

Start with the structural evidence of awareness at the Top

• Awareness is gained through an ethical and moral foundation to doing business and from reading, education, interaction with peers, etc. and not through SEC or DOJ Enforcement action.
• Definition of Terms, Written Policies, procedures and directives
• Formal training, Information, Newsletters, Town Hall meetings, etc.

FCPA Sections and EU directives Compliance Program issues

• Anti-Bribery (also grease or facilitating payments separately discussed)
• Books, records, and internal controls
• Transaction reviews – Payables, T and E, Contracts, Other Expenditure methods (e.g., check request or electronic fund transfer that do not flow through normal payable controls
• Controls reviews – Similar to Sox work but separate / different risk analyses probably lead to different key controls and different testing
• Disclosures – Monthly or quarterly roll-out of concerns (implies awareness and training at Business Unit level). Includes Top Legal Department Talent as final arbiter of what is disclosed

See separate brochure on FCPA workshop here.