Why are the trials under the Foreign Corrupt Practices Act multiplying 30 years after its implementation? Is it yet another example of decade long non compliance that has provided Securities and Exchange Commission almost a billion dollars in penalties?

Compliance programs can help a corporation avoid prosecution for the unauthorized acts of its employees and reduce the penalty imposed.

The SEC has identified the existence of a corporate compliance program as a factor to be considered when deciding whether to bring charges. Moreover, Federal Sentencing Guidelines provide for lower fines when a company has an effective compliance program in place.

Currently there is now a worldwide focus on prosecuting corruption. On Nov. 20, 2009, a Swiss court ordered the confiscation of bank accounts held in countries outside Switzerland in connection with the graft conviction of the son of Sani Abacha, the late Nigerian dictator estimated to have stolen over $2.2 billion from Nigeria's public coffers. Shedding its reputation as a repository for illicit funds, Switzerland has tried to recover funds siphoned off by public officials.

For over 3 decades almost prosecutions under the Foreign Corrupt Practices Act (FCPA), enacted in 1977 in response to widespread corporate bribery scandals, were rare. In the past few years, FCPA prosecutions have exploded, landing high-profile executives in prison and netting the Department of Justice and the Securities and Exchange Commission almost a billion dollars in penalties.

There are an estimated 120 pending FCPA investigations. Several factors have caused this, including increased penetration of U.S. companies into countries like oil-rich Nigeria, where bribes are expected; the Patriot Act of 2001, which connects bribing foreign officials to the advancement of terrorist activity; the Sarbanes-Oxley Act of 2002, which makes senior executives of public companies accountable for the criminal activities of the company; a heightened sensitivity to FCPA violations with mergers; and a significant increase in voluntary disclosures.

While these causes have increased investigations, governments will keep pursuing corrupt business practices for one very simple reason--it's lucrative.

Too many corporate executives believe they will be protected by a "don't ask, don't tell" policy, when it comes to bribes and foreign officials. Not anymore. Given this climate of vigorous FCPA investigation and enforcement, corporate executives should ensure that an effective compliance program is implemented and followed. An effective, written compliance program will educate employees; require due diligence in pertinent business functions; and establish internal controls to determine whether payments are for legitimate services, if they will be shared with government officials or if payments will be accurately recorded in the company's books and records. It will also promote accurate financial record keeping; foster the reporting of violations and monitor high-risk activity. Such a program represents tangible evidence that a corporation seeks to prevent unlawful corrupt payments.

Simply put, the old ways of doing business globally won't be tolerated any more. The government is watching and the risks are too high.