Do It Go

Companies are being advised to keep up with their policies of regulatory compliance to the laws of the Foreign Corrupt Practices Act.  In the current climate, the amount of corruption investigations underway, and the increased activity and diligence on the part of the FCPA investigators, has many companies nervous, for fear of the simple mention of the acronym, “FCPA”.  Many hear that and immediately think of fines, lawsuits, prosecution and jail time.  This is not the case, for if a business is being conducted and operated in an ethical manner than they really have nothing to worry about.

The FCPA, the courts, the lawyers have nothing to gain by pursuing prosecuting a case wherein the defendant is obviously innocent.  It would be a waste of time.  Now it is more important than it ever has been that companies make certain that those in charge of following and enforcing due diligence and regulatory compliance, do so in a thorough and unwavering manner.  For companies that are unsure if their compliance may be slipping, there are many organizations that will come in and do risk assessments.

This will measure accurately, with the help of a third and unbiased party, whether people are doing their jobs to the fullest extent.  They will also assess how well the current procedures are working and suggest ways in which to improve and increase the effectiveness of the program.  The point is, is that when one company commits corruption, such as fraud or extortion,  the ramifications for all those they do business with is great, is daunting.

For even if their associates were not involved, they will for one, come under investigation.  Secondly, they may be charged with not being thorough enough, not fully checking the company out to make certain they were trustworthy.  And thirdly, they may lose business as a result.  For when they become the subject of the FCPA policies of a prospective new business partner, that partner may not want to be associated with with a party who has been noted to be involved with another company, convicted of fraudulent and illegal activities.  It’s a cyclical process that is so easily avoided, by simply taking the time and the effort to comply.

Tags: extortion, regulatory compliance, risk assessments
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