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WWW.AWAS.COM © AWAS (IRELAND) LIMITED
HOW CAN BRIBERY / CORRUPTION IMPACT
ON YOUR BUSINESS?
8 OF THE TOP 10 FCPA ENFORCEMENT ACTIONS OF ALL TIME INVOLVE
NON-US CO.S
• SIEMENS (GERMANY): $800 MILLION IN 2008
• BAE (UK): $400 MILLION IN 2010
• TOTAL S.A. (FRANCE) $398 MILLION IN 2013
• SNAMPROGETTI NETHERLANDS (HOLLAND): $365 MILLION IN 2010
• TECHNIP S.A. (FRANCE): $338 MILLION IN 2010
• JGC CORPORATION (JAPAN): $218.8 MILLION IN 2011
• DAIMLER AG (GERMANY): $185 MILLION IN 2010
• WEATHERFORD INTERNATIONAL (SWITZERLAND): $152.6 MILLION IN 2013
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WWW.AWAS.COM © AWAS (IRELAND) LIMITED
ONGOING INVESTIGATIONS
Avon Products Inc. - world’s largest direct seller of beauty products
could pay up to US$132 million to settle bribery probe under FCPA.
Rolls-Royce - world's second-largest aircraft engine manufacturer
announced in December 2013 that the Serious Fraud Office had
launched an investigation into possible bribery in China and Indonesia.
Wal-Mart Stores, Inc. – world's largest retailer expects to spend up to
$240 million on FCPA-related matters and compliance in 2015. Wal-
Mart has already spent more than $300 million in this area.
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WWW.AWAS.COM © AWAS (IRELAND) LIMITED
INDIVIDUALS PAY THE PRICE....
Siemens AG – in February, the largest ever civil penalties for
individuals relating to bribery was imposed on 2 former Siemens
executives. Each was ordered to pay a $524,000 penalty.
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Petro Tiger Ltd. – former CEO of the British Virgin Islands oil
and gas company was charged with FCPA-related offenses in
February. The company's former General Counsel also pleaded
guilty to bribery.
WWW.AWAS.COM © AWAS (IRELAND) LIMITED
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ANTI-BRIBERY LEGISLATION
USA - Foreign Corrupt Practices Act, 1977 (FCPA)
Ireland - Prevention of Corruption Acts, 1889-2010
UK - Bribery Act, 2010
WWW.AWAS.COM © AWAS (IRELAND) LIMITED
WHAT IS A BRIBE?
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What specific actions are prohibited?
OFFERING, GIVING or agreeing to offer or give a GIFT as an
INDUCEMENT OR REWARD to a person who can TAKE OR INFLUENCE
AN ACTION OR INACTION in relation to their own position or office or
AWAS’ affairs or business.
ACCEPTING, OBTAINING or agreeing to accept or obtain a GIFT as an
INDUCEMENT OR REWARD from a person for any action or inaction by
AWAS.
What constitutes a gift?
Cash or cash equivalents
Kickbacks
Certain corporate entertainment
Contributions to any political party
WWW.AWAS.COM © AWAS (IRELAND) LIMITED
EFFECTIVE PREVENTION OF BRIBERY
Clear and well communicated policy prohibiting bribery
Strong commitment from Management to the company's
compliance programme / Policy and positive support for its
observance
Policy applicable to all levels of the company (directors, officers,
employees and subsidiaries)
Clear reporting mechanism and protection through anonymity
Effective control over:
(i) gifts
(ii) hospitality, entertainment
(iii) travel expenses
(iv) political / charitable donations
(v) facilitation payments
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WWW.AWAS.COM © AWAS (IRELAND) LIMITED
EFFECTIVE PREVENTION OF BRIBERY cont’d.
Inform business partners of the company’s commitment to
abiding by anti-bribery laws and of Policy
Ensure periodic communication & documented training on the
compliance programme / Policy for all levels of the company
Periodic reviews of Policy / compliance programme to improve
effectiveness & align with evolving international standards
Appropriate disciplinary procedures to address violations or
failure to report suspected violations
Zero tolerance of retaliation against
whistle blowing
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WWW.AWAS.COM © AWAS (IRELAND) LIMITED
USE OF GIFT REGISTERS, MONETARY
THRESHOLDS & EFFECTIVE MONITORING
Gifts come in many guises – extravagant or frequent
entertainment can have the same effect as generous gifts
Consider absolute prohibition or the use of monetary thresholds
at which (a) notification must be made or (b) approval is required
How to monitor?
(i) Gift Register
(ii) Expense Reimbursement
(iii) Expense Reports
(iv) Escalation to Management
(v) Governance Board review
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WWW.AWAS.COM © AWAS (IRELAND) LIMITED
USEFUL SOURCES OF INFORMATION
Transparency International (http://www.transparency.org)
Convention On Combating Bribery Of Foreign Public Officials In
International Business Transactions - Organisation for
Economic Co-operation and Development (“OECD”)
“Good Practice Guidance on Internal Controls, Ethics, and
Compliance” - OECD
United Nations Convention Against Corruption
FCPA Blog (http://www.fcpablog.com)
Ethical Alliance Daily (http://ethicalalliance.org)
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