WELCOME
Annual Meeting &
Compliance Seminar
The Internationalization of Anti-Corruption
Compliance and Enforcement
Annual Compliance Seminar and ACCGNY Annual Meeting
Cheryl A. Krause
Dechert LLP
September 30, 2010
© 2010 Dechert
• Global Anti-Corruption Outlook
• International Anti-Corruption Treaties
• Regional Anti-Corruption Treaties
• Domestic Anti-Corruption Laws
“Hot Spots” According To Corruption Perceptions Index 2009
Guinea
Myanmar
(Burma)
Venezuela
• Chad
• Sudan
• Congo
• Dem. Rep. Congo
• Angola
Source: Transparency International
© 2010 Dechert
• Iraq
• Iran
• Turkmenistan
• Uzbekistan
• Afghanistan
• Kyrgyzstan
The Correlation Between “Red Tape” And Corruption
“A high ranking on the ease of doing business index means the
regulatory environment is conducive to the operation of
business.” -- World Bank’s Economic Rankings
n = 183 countries
Ease of Doing Business
Rank
Dealing with Construction
Permits
Singapore
1
2
New Zealand
2
5
Hong Kong SAR, China
3
1
United States
4
25
United Kingdom
5
16
Economy
China
89
180
Russian Federation
120
182
India
133
175
Congo, Rep.
179
70
Sao Toamae and Principe
180
116
Guinea-Bissau
181
114
Congo, Dem. Rep.
182
146
Central African Republic
183
147
Top tier
compliance
jurisdictions have
least red tape
Bottom tier
compliance
jurisdictions have
significant red
tape
Lowest tier
compliance
jurisdictions have
most red tape
Source: World Bank (http://www.doingbusiness.org/economyrankings/?direction=Asc&sort=1); FCPA Blog
How do you get
a permit in
China, Russia, or
India?
Regional Bribing Disparities Warrant Geographic-Focused
Due Diligence
includes Armenia,
Azerbaijan,
Belarus, Georgia,
Moldova, Mongolia,
Russia, Ukraine
Companies Must Balance Perceived Corruption Risk With
Economic Opportunities To Develop A Strategic Compliance
Policy That Is Sensitive To Regional Disparities
High
• Somalia
• Afghanistan
• Uzbekistan
• Turkmenistan
• Ukraine
Total Trade (Exports + Imports) in USD Millions
$0
$100,000
$200,000
$300,000
$400,000
$500,000
Corruption Perception Index
0
Low
1
2
3
4
5
6
Russia
India
low trade volume &
high corruption
high trade volume &
high corruption
China
Brazil
Hong Kong
UK
7
8
low trade volume &
low corruption
9
Singapore
10
New
Zealand
high trade volume &
low corruption
Canada
• Global Anti-Corruption Outlook
• International Anti-Corruption Treaties
• Regional Anti-Corruption Treaties
• Domestic Anti-Corruption Laws
The Organization for Economic Co-Operation and Development
(OECD) Convention On Combating Bribery
Prohibition
“Each Party shall take such measures as may be necessary to establish that it is a criminal offence
under its law for any person intentionally to offer, promise or give any undue pecuniary or other
advantage, whether directly or through intermediaries, to a foreign public official, for that official or for a
third party, in order that the official act or refrain from acting in relation to the performance of official
duties, in order to obtain or retain business or other improper advantage in the conduct of international
business.”
Implementation
• Parties must criminalize complicity (incitement, aiding and abetting, authorization) in bribery of foreign
public officials by natural/legal persons, as well as improper accounting, and adopt effective sanctions,
including seizure and confiscation of proceeds of bribery
• Parties must establish jurisdiction over bribery committed at least part in their own territory
• Parties must cooperate when they have shared jurisdiction
• Parties must cooperate in ongoing monitoring and reporting of obligations through “OECD Working
Group on Bribery in International Business Transactions”
Enforcement
• Subject to the domestic law of each party
exercising jurisdiction
• Parties must render mutual legal assistance in
criminal investigations/prosecutions
• Bribery is extraditable offense, and the OECD
convention can substitute for an extradition treaty
Status
Ratified by 38 countries to date (including U.S., but
not China or Russia)
Purpose
“[A]chieving progress in this field requires not only
efforts on a national level but also multilateral cooperation, monitoring and follow-up”
United Nations Convention Against Corruption
Provisions
• Requires parties to criminalize public bribery as related to national and foreign
officials (Arts. 15, 16)
• Parties are encouraged to prevent private bribery, and to adopt books and records
controls, but are not required to criminalize improper conduct in this regard (Arts. 12,
21)
Principal weaknesses
• Non-binding provisions (e.g., those requiring that parties “shall take measures, in
accordance with the fundamental principles of its domestic law,” or that merely
require states to “consider” adopting legislative prohibitions)
• No enforcement mechanism to deter violations
Status
• Adopted by UN General Assembly Resolution on
Oct. 31, 2003 and entered into force Dec. 14, 2005
• Broad adherence by 140 parties (includes China,
Russia, United States)
• Global Anti-Corruption Outlook
• International Anti-Corruption Treaties
• Regional Anti-Corruption Treaties
• Domestic Anti-Corruption Laws
Regional Anti-Corruption Treaties
Council of Europe
•
Criminal Law Convention on Corruption
–
–
–
•
Requires parties to criminalize public corruption, including corruption of both the public
officials in the party’s country, as well as foreign public officials, and officials of public
international organizations
Requires parties to criminalize private corruption
43 parties to date; U.S. has signed, but not ratified, the Convention
Civil Law Convention on Corruption
–
–
Requires parties to provide civil remedies for victims of corruption, including victims of public
corruption, and to cooperate in international civil proceedings (including service, obtaining
evidence, and enforcement of judgments). Query: potential civil liability for corporation
found to have damaged private European plaintiff?
34 parties to date, not including the U.S.
Organization of American States
•
Inter-American Convention Against Corruption
–
Requires parties (including the U.S.) to adopt domestic laws to prohibit public corruption
African Union
•
African Union Convention on Preventing and Combating Corruption
–
Requires parties to adopt domestic laws to prohibit both public and private corruption
• Global Anti-Corruption Outlook
• International Anti-Corruption Treaties
• Regional Anti-Corruption Treaties
• Domestic Anti-Corruption Laws
UK Bribery Act Of 2010
Offense: Failure to prevent bribery (strict liability)
•
UK claims jurisdiction over any company, “wherever incorporated,” that “carries on a
business, or part of a business, in any part of the United Kingdom”
– Company’s connection with the UK can be minimal and the act of bribery can
take place anywhere in the world. Thus, even if bribe is paid outside UK, and the
benefit is realized outside UK, and company’s dealings with UK are limited, there
can still be liability.
Offense: Active Bribery
•
For the payer or recipient of a bribe to be subject to the Act, one of two tests must be
met:
– Act or omission forming part of the offense must have occurred in the UK, or
– The offender must be a British citizen, a British
corporation or an individual ordinarily resident
in the United Kingdom
Status
• Guidance issued Sept. 14, 2010
• Consultative process continues until
November 8, 2010
• New guidance to be offered in new year
• New law will be effective April 2011
UK Bribery Act Of 2010 (cont’d)
Private commercial bribery covered
•
Prohibits both commercial bribery of private parties as well as bribery of
public officials
Giving and receipt of bribe (“active” and “passive” bribery) both
criminalized
•
Unless the recipient is a foreign public official
Defenses and exceptions
•
New affirmative defense for companies: “adequate procedures” to prevent
bribery
•
No exception for “facilitating payments”
UK Ministry of Justice’s Sept. 14 Proposed Guidance
1.
Risk assessment. Requires attention to: qualifications of those conducting the risk
assessment; the business’s market and industry; country risks; transaction risks; business
partner risks.
2.
Senior Management Commitment. Requires establishing a culture of compliance and
conveying this message regularly to staff and business partners; appointment of a senior
manager with oversight of compliance.
3.
Due diligence. Requires knowing with whom you are dealing; ensuring that business
relationships are transparent and ethical; knowing why, when, and to whom funds are being
released; reciprocal anti-bribery agreements; inquiries about bribery risks in particular
countries; inquiries about risks of a particular business opportunity; inquiries regarding
reputation of individuals or organizations involved in key decisions, such as joint venture
partners.
4.
Clear, practical, accessible procedures. Must apply to all employees and business
partners; covers political and charitable contributions, gifts, hospitality, and promotional
expenses; requires policies and procedures to deal with bribery allegations and making
anti-bribery code of conduct part of employment contract
5.
Effective implementation. Requires evidence that policy is not simply a “paper policy,”
including evidence of: internal controls; recruitment; training; communications.
6.
Monitoring and review. Requires auditing and financial controls; and consideration of
how often to review, and whether external review is required.
People’s Republic Of China Anti-Corruption Laws
•
PRC criminal code prohibits both private commercial bribery and bribery of officials (broader than
FCPA)
–
Commercial bribery (Art. 163) requires:
• demanding, offering, or receiving property from others;
• by or from a member of the working personnel of a company or enterprise;
• in return for a benefit, or for assistance in obtaining a benefit; and
• the amount of the bribe is of a relatively large value. (The term "relatively large value" is
not specifically defined, but acceptable gifts have included moon cake coupons, modest
dining and reasonable travel expenses.)
–
Bribery of officials (Art. 389) requires:
• giving property;
• to a state functionary;
• in return for illegitimate gain.
–
•
Applies to both foreigners and Chinese citizens
Note:
• PRC criminal law broader than FCPA
because includes commercial bribery
prohibition
• PRC criminal law narrower than FCPA
regarding official bribery because requires
actual giving of item of value, not mere
promise
PRC Unfair Competition Law
–
Provides a broad definition of commercial bribery "by giving property or otherwise" and prohibits
commercial bribery by operators
–
Applies to less severe bribery cases
Source: Metropolitan Corporate Counsel (Aug. 2010);
http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052702304370304575151032293098898.html
Recent Chinese Enforcement Of Anti-Corruption Laws
•
Recent new measures
– New regulations adopted in July 2010 require mid-level Communist Party
officials and state-owned enterprise executives to declare their financial
interests and those of their family members
– New measures motivated by public concern with levels of corruption,
which PRC leaders view as a threat to the regime
•
Evidence of active enforcement
– Over 3,375 commercial bribery investigations by State Administration of
Industry and Commerce (“SAIC”) in 2009
– Recent prosecution of 4 Rio Tinto employees (Australian mining co.) for
accepting bribes from Chinese steel industry (one of which was disguised
as home loan), allegedly in exchange for steering iron ore shipments to
the Chinese manufacturers. Resulted in prison sentences of 7-14 years
– Other offenders include Carrefour hypermarkets, IBM, and Hitachi
Source: Metropolitan Corporate Counsel (Aug. 2010);
http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052702304370304575151032293098898.html
Recent Chinese Enforcement Of Anti-Corruption Laws
(cont.)
•
Other recent cases
– Huang Guangyu – The founder of GOME (and one-time richest man in
China) was sentenced to two years imprisonment for violating China’s
anti bribery legislation. Huang bribed or instigated others to bribe five
government officials between 2006 and 2008 in exchange for corporate
benefits.
– Jiahe Life – China charged Jiahe Life, a Chinese insurance company,
and individuals within the company with bribing employees of China’s
Agricultural Bank. Jiahe was fined RMB1.2 million and the person
responsible for approving the bribes was sentenced to 21 months
imprisonment.
– Zhang Jingli - China has recently begun investigating Zhang Jingli, one
of four deputy heads of China's State Food & Drug Administration for
"suspected disciplinary violations." It appears that Zhang was ousted
after authorities began probing a number of pharma companies,
including the Shanghai branch of Johnson & Johnson, for bribery
offenses.
Russia’s Anti-Corruption Laws
•
Background
– An estimated $300 billion in bribes are paid annually in Russia
– Russia ranked 146 out of 180 countries in Transparency
International’s 2009 Global Corruption Index
– Russia adopted new anti-corruption legislation on Dec. 30, 2008
which became effective Jan. 10, 2009
– Russia enacted a federal law "On Counteracting Corruption" and
amended more than 20 existing laws of the Russian Federation in
January 2009 ("the Anti-corruption Legislation")
– This legislation was motivated by Russian President Dmitry
Medvedev’s National Plan for Counteraction to Corruption of July 31,
2008 and Russia’s commitments under the UN Anti-Bribery
Convention and the Council of Europe’s Criminal Law Convention on
Corruption
Source: http://belfercenter.ksg.harvard.edu/publication/814/long_war_against_corruption.html
Russia’s Anti-Corruption Laws (cont.)
•
Bribing an Official (Article 291 of the RF Criminal Code)
– What Is Prohibited:
• Giving something of value
• To an official
• In return for:
– actions (or inaction) by an official and within the official’s authority; or
– an official’s assistance in effecting such action or omission; or
– an official’s “general patronage”;
• for the benefit of the person providing the bribe or related party
– an “Official” is: a person who permanently, temporarily or under specific authority
performs the functions of a state representative or performs organizational
(management) or administrative (economic) functions in state, local municipal bodies,
or armed forces (including lawmakers, representatives of state control and supervisory
bodies, judges, customs officials etc.)
•
Commercial Bribery (Article 204 of the RF Criminal Code)
– Punishes giving money, securities (commercial paper), or other material goods, or the
unlawful rendering of services, material in nature, to an officer of a commercial
organization in exchange for certain benefits and in connection with such officer’s
position in a commercial organization
Russia’s Anti-Corruption Laws (cont.)
•
Elements of the new legislation
– Increases public control over public officials and transparency of
governmental functions by giving President the right to form anticorruption
commissions and increasing access of public to information on the activities
of governmental bodies
– Imposes new requirements and restrictions on public officials, including a
requirement to regularly disclose personal financial information
– Introduces whistle-blowing provisions requiring public officials to notify
authorities of violations of anticorruption laws and of attempted corruption
– Includes new requirements and restrictions on judges and candidates for
judicial positions relating to professional qualifications and experience,
criminal history, and referrals from previous employers
– Imposes more severe sanctions for corruption
Note:
• Prohibition broader than FCPA because
includes commercial bribery prohibition
• Prohibition narrower than FCPA regarding
official bribery because requires actual giving
of item of value, not mere promise
Recent Russian Enforcement of Anti-Corruption Laws
•
Russian investigators cooperated with German and United States
authorities in the Hewlett Packard probe, and raided HP's Moscow
offices in April 2010
•
In May 2010, Russian prosecutors received information from the
United States to aid their investigation into allegations of bribery by
Daimler AG
•
4,500 corruption cases were brought to court in the first half of 2009
in Russia, with 532 public officials convicted
•
However, it is questionable whether there has been an actual
improvement in enforcement – according to Russia’s Justice
Ministry, the number of corrupt officials exposed and punished has
not increased over the last three years
Sources: RIA Novosti (May 2010), at http://en.rian.ru/russia/20100520/159088935.html; Wall Street Journal (August 2010), at
http://online.wsj.com/article/SB10001424052748703723504575425303867402456.html?mod=googlenews_wsj; RIA Novosti (July 2010), at
http://en.rian.ru/world/20100702/159659046.html; Moscow Times (September 2010), at http://www.themoscowtimes.com/business/article/anti-corruption-effortswords-not-deeds/414694.html
Risk Factors When Conducting
Internal Investigations
Dan Karson
Executive Managing Director
Kroll
New York, New York
September 30, 2010
Disclaimer: The information herein is of a
summary nature and is limited to the U.S.;
international rules and regulations may differ. It is
not intended to be taken as advice with respect to
any individual situation and cannot be relied upon
as such, nor as financial, regulatory or legal
advice which we are not authorized to provide.
ALLEGATIONS
•IP Theft
•FCPA Violations – Kickbacks
•Stealing Company Money, Assets
WHAT WE’LL DISCUSS
•Assessing the situation
•Investigative strategy
•Where to look for evidence
•Whom to interview
•What not to do
•Laws and cases relevant to the investigation
THE SEARCH FOR EVIDENCE
•What first steps should I take?
•Where might I find good evidence?
•Electronic evidence
•Physical evidence
•Witness evidence
EVIDENCE UNDER YOUR CONTROL
•Electronic evidence
•Electronic data lasts (almost) forever
•Image/copy
−Email
−Electronic organizer files
−Word-processing and spreadsheet files
•Webmail
−Network logs of the subject’s internet usage
−Suspend IT deletion schedule with respect to all
server files that the subject created or modified
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•EU Data Protection Directive – Safe Harbor
http://www.export.gov/safeharbor/eg_main_018236.asp
•Latin America – evolving data protection laws:
−Argentina law is similar to Europe
−Mexico: new DP regulations are in effect
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Europe – generally the rule for examining hard
drives:
−Is what I’m doing fair?
−Do I have a reason to look at this?
Answer: Yes, if you are investigating potential
fraud or misconduct
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Data transfer
−Even if you are entitled to retrieve data, you may be
restricted from transferring it out of the country
−You must have a Safe Harbor certification
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Pro-employee countries may be even more
restrictive: France, Italy.
−Employee consents may not be sufficient
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Defamation can be a criminal offense in Latin
America and Europe.
−An investigative report could be deemed to be a
criminal offense in many countries, e.g: Argentina,
Brazil, Colombia, Mexico, Belgium France, Germany,
Sweden, Poland, Russia, Spain, Switzerland.
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Criminal liability may not attach against a
business in certain countries. A charge of
defamation therefore could be brought against a
corporate officer.
COMPREHENSIVE DUE DILIGENCE IS INDISPENSABLE
•Companies must investigate employees and managers, especially
employees responsible for purchasing goods
and services and seeking government contracts.
•Verify education, employment and backgrounds; investigate
affiliations with private businesses
•Confirm reasons for departing previous employers
•Investigate agents and representatives – people to whom you “give
your pen”
COMPREHENSIVE DUE DILIGENCE IS INDISPENSABLE
•Lay down the law on FCPA and zero tolerance for bribery
•Require vendors to sign vendor codes of conduct
•Red Flag: the new head of purchasing replaces your traditional
vendors
−Good reason: lower prices, higher quality, faster delivery
−Bad reason: these are the vendors who paid him off at his last
job
•Audit your vendor list. Make sure vendors are real companies
supplying real goods and services.
•Work with reputable consultants and investigators. You are
responsible for their actions.
Risk Factors When Conducting
Internal Investigations
Dan Karson
Executive Managing Director
Kroll
New York, New York
September 30, 2010
Disclaimer: The information herein is of a
summary nature and is limited to the U.S.;
international rules and regulations may differ. It is
not intended to be taken as advice with respect to
any individual situation and cannot be relied upon
as such, nor as financial, regulatory or legal
advice which we are not authorized to provide.
ALLEGATIONS
•IP Theft
•FCPA Violations – Kickbacks
•Stealing Company Money, Assets
WHAT WE’LL DISCUSS
•Assessing the situation
•Investigative strategy
•Where to look for evidence
•Whom to interview
•What not to do
•Laws and cases relevant to the investigation
THE SEARCH FOR EVIDENCE
•What first steps should I take?
•Where might I find good evidence?
•Electronic evidence
•Physical evidence
•Witness evidence
EVIDENCE UNDER YOUR CONTROL
•Electronic evidence
•Electronic data lasts (almost) forever
•Image/copy
−Email
−Electronic organizer files
−Word-processing and spreadsheet files
•Webmail
−Network logs of the subject’s internet usage
−Suspend IT deletion schedule with respect to all
server files that the subject created or modified
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•EU Data Protection Directive – Safe Harbor
http://www.export.gov/safeharbor/eg_main_018236.asp
•Latin America – evolving data protection laws:
−Argentina law is similar to Europe
−Mexico: new DP regulations are in effect
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Europe – generally the rule for examining hard
drives:
−Is what I’m doing fair?
−Do I have a reason to look at this?
Answer: Yes, if you are investigating potential
fraud or misconduct
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Data transfer
−Even if you are entitled to retrieve data, you may be
restricted from transferring it out of the country
−You must have a Safe Harbor certification
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Pro-employee countries may be even more
restrictive: France, Italy.
−Employee consents may not be sufficient
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Defamation can be a criminal offense in Latin
America and Europe.
−An investigative report could be deemed to be a
criminal offense in many countries, e.g: Argentina,
Brazil, Colombia, Mexico, Belgium France, Germany,
Sweden, Poland, Russia, Spain, Switzerland.
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Criminal liability may not attach against a
business in certain countries. A charge of
defamation therefore could be brought against a
corporate officer.
COMPREHENSIVE DUE DILIGENCE IS INDISPENSABLE
•Companies must investigate employees and managers, especially
employees responsible for purchasing goods
and services and seeking government contracts.
•Verify education, employment and backgrounds; investigate
affiliations with private businesses
•Confirm reasons for departing previous employers
•Investigate agents and representatives – people to whom you “give
your pen”
COMPREHENSIVE DUE DILIGENCE IS INDISPENSABLE
•Lay down the law on FCPA and zero tolerance for bribery
•Require vendors to sign vendor codes of conduct
•Red Flag: the new head of purchasing replaces your traditional
vendors
−Good reason: lower prices, higher quality, faster delivery
−Bad reason: these are the vendors who paid him off at his last
job
•Audit your vendor list. Make sure vendors are real companies
supplying real goods and services.
•Work with reputable consultants and investigators. You are
responsible for their actions.
Risk Factors When Conducting
Internal Investigations
Dan Karson
Executive Managing Director
Kroll
New York, New York
September 30, 2010
Disclaimer: The information herein is of a
summary nature and is limited to the U.S.;
international rules and regulations may differ. It is
not intended to be taken as advice with respect to
any individual situation and cannot be relied upon
as such, nor as financial, regulatory or legal
advice which we are not authorized to provide.
ALLEGATIONS
•IP Theft
•FCPA Violations – Kickbacks
•Stealing Company Money, Assets
WHAT WE’LL DISCUSS
•Assessing the situation
•Investigative strategy
•Where to look for evidence
•Whom to interview
•What not to do
•Laws and cases relevant to the investigation
THE SEARCH FOR EVIDENCE
•What first steps should I take?
•Where might I find good evidence?
•Electronic evidence
•Physical evidence
•Witness evidence
EVIDENCE UNDER YOUR CONTROL
•Electronic evidence
•Electronic data lasts (almost) forever
•Image/copy
−Email
−Electronic organizer files
−Word-processing and spreadsheet files
•Webmail
−Network logs of the subject’s internet usage
−Suspend IT deletion schedule with respect to all
server files that the subject created or modified
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•EU Data Protection Directive – Safe Harbor
http://www.export.gov/safeharbor/eg_main_018236.asp
•Latin America – evolving data protection laws:
−Argentina law is similar to Europe
−Mexico: new DP regulations are in effect
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Europe – generally the rule for examining hard
drives:
−Is what I’m doing fair?
−Do I have a reason to look at this?
Answer: Yes, if you are investigating potential
fraud or misconduct
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Data transfer
−Even if you are entitled to retrieve data, you may be
restricted from transferring it out of the country
−You must have a Safe Harbor certification
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Pro-employee countries may be even more
restrictive: France, Italy.
−Employee consents may not be sufficient
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Defamation can be a criminal offense in Latin
America and Europe.
−An investigative report could be deemed to be a
criminal offense in many countries, e.g: Argentina,
Brazil, Colombia, Mexico, Belgium France, Germany,
Sweden, Poland, Russia, Spain, Switzerland.
DATA PROTECTION LAWS RESTRICT THE
RETRIEVAL AND TRANSMISSION OF DATA
•Criminal liability may not attach against a
business in certain countries. A charge of
defamation therefore could be brought against a
corporate officer.
COMPREHENSIVE DUE DILIGENCE IS INDISPENSABLE
•Companies must investigate employees and managers, especially
employees responsible for purchasing goods
and services and seeking government contracts.
•Verify education, employment and backgrounds; investigate
affiliations with private businesses
•Confirm reasons for departing previous employers
•Investigate agents and representatives – people to whom you “give
your pen”
COMPREHENSIVE DUE DILIGENCE IS INDISPENSABLE
•Lay down the law on FCPA and zero tolerance for bribery
•Require vendors to sign vendor codes of conduct
•Red Flag: the new head of purchasing replaces your traditional
vendors
−Good reason: lower prices, higher quality, faster delivery
−Bad reason: these are the vendors who paid him off at his last
job
•Audit your vendor list. Make sure vendors are real companies
supplying real goods and services.
•Work with reputable consultants and investigators. You are
responsible for their actions.