Entries in Due Diligence (110)
Doing business in countries perceived to be high risk for corruption and FCPA compliance issues (and unhappily my country Nigeria sits squarely within that category) requires a clear picture of who your local partners are, and whether associating with them represents any sort of risk to you from a compliance perspective.
There are many striking similarities between navigating the daily chaos of urban traffic in Lagos, Nigeria and attempting to do business ethically in Nigeria. For one thing the objectives are generally the same -- to arrive alive, unharmed, and without any damage to your car or your reputation.
What is it about agents, fixers, and intermediaries that makes them so attractive while potentially toxic to multinationals?
When a company merges with or acquires another company, the successor company risks assuming the predecessor company’s liabilities, including any FCPA violations that occurred prior to the merger.
With the growing number of data sources and changing regulation, compliance teams are under incredible pressure and scrutiny to implement the most thorough due diligence process available.
The old Chinese saying “money and power always come together” acknowledges the prevalence of using political power to gain business advantage in China. In ancient China, governmental officials opened their own businesses, which earned them the title “Red Hat Businessmen” alluding to the official hat under the Qing Dynasty of China.
For more than a year, France has been working on improving its legislation to enact a new anti-corruption law in order to reach the same standards as the FCPA, the UK Bribery Act or the Brazilian Clean Company Act.
I cringe when compliance teams rely solely on Google to investigate and make decisions.