FCPA Guide Underscores the Importance of Risk-Based Due Diligence
NEW YORK, Nov. 27, 2012 /PRNewswire/ -- According to IPSA International, Inc., the term 'due diligence' is mentioned 76 times in the newly released Resource Guide to the U.S. Foreign Corrupt Practices Act (FCPA Guide) where, over the past four years, corporations have paid more than $2 billion in fines arising from FCPA violations.
According to the FCPA Guide, risk-based due diligence is critical to the detection and prevention of corrupt activities, the cornerstone of an effective anti-corruption program, and a key factor taken into consideration by the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) in declining to pursue FCPA violations. The FCPA Guide underscores the importance of risk-based due diligence in two areas considered the most common sources of corruption risk - third-party intermediaries and mergers and acquisitions. These two common, yet high-risk business practices also represent the majority of enforcement proceedings over the past 6 years1.
"It all comes back to risk-based due diligence and a disciplined, pro-active approach to assessing and improving anti-corruption compliance efforts", commented Robert Weiner, Managing Director and Regional Counsel, IPSA International, Inc. "According to the FCPA Guide, the DOJ and SEC have declined to take action against companies to the degree that they conducted risk-based due diligence, voluntarily disclosed potential FCPA violations, sought remedial action, and cooperated with authorities."
IPSA International's anti-bribery and corruption experts conduct global, risk-based due diligence and independent reviews of anti-corruption programs to determine a company's capability of reasonably detecting and preventing bribery and corruption. Our clients are multinational corporations subject to increased anti-corruption requirements including the FCPA, U.K. Bribery Act and other country-specific anti-bribery regulations.
ABOUT IPSA International, Inc.
IPSA International, Inc. has a 20 year history of successfully completing complex multi-jurisdictional engagements in the areas of anti-money laundering, anti-bribery and corruption, investigative due diligence, and litigation support. Assignments include large-scale internal investigations, regulatory driven remediation and compliance reviews for Fortune 100 corporations, banking and financial institutions, and law firms. Our senior investigators and advisors deliver timely, accurate and defensible intelligence that supports our clients in making better informed decisions, ensuring compliance and mitigating risk. IPSA International has offices in the U.S., U.K. and Canada, resources in over 75 countries and research capabilities in 20 languages. Please visit us at www.ipsaintl.com
Mr. Robert Weiner, JD, CIPP
Managing Director and Regional Counsel
IPSA International, Inc.
1185 Avenue of the Americas
New York, NY 10036
1 According to an analysis of SEC and DOJ enforcement actions, the alleged use of third-party intermediaries to pay bribes to foreign government officials increased from 42% of FCPA enforcement actions in 2005 to 100% in 2011. Based on statistics compiled by Transparency International, approximately 50% of U.S. FCPA prosecutions in 2007 were connected to M&A transactions.
SOURCE IPSA International, Inc.