Minimising corruption risk
November 13, 2012 | BY
clpstaff &clp articlesForeign investors in China face the challenge of dealing with corruption in an unfamiliar business culture. The penalties set out in UK, US and Chinese law are strict, but a comparison of bribery legislation shows what steps can be taken to mitigate risks
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Multinationals will already be familiar with the provisions of the US Foreign Corrupt Practices Act (FCPA) and will have in place compliance programs to mitigate potential risk. However, the FCPA is not the only anti-corruption statute that businesses need to be concerned with. Last year, the United Kingdom enacted the Bribery Act 2010 (Bribery Act) which is far-reaching, both in terms of the offences it creates and its extra-territorial reach. At the same time, there have been recent extensions to China's domestic anti-bribery provisions as well as an increase in domestic enforcement activity.
With enforcement levels in the US at unprecedented levels over recent years, and the UK and PRC regulators looking to make their mark, it is now more important than ever that multinationals have in place policies and controls that are compliant with both international and domestic anti-corruption legislation.