Technology solutions can aid FCPA compliance programs
The long-awaited Justice Department guidance on the Foreign Corrupt Practices Act (FCPA)was warmly received, but it's unclear if it will lead to a big change in the way companies approach the law.
The threat of an enforcement action has stepped up as of late. While companies seem to more aware of the risks generically, they also seem uncertain as to how to set up preventative and monitoring measures. A report from Deloitte, as noted by CFO.com, has found that 44.6 percent of compliance and other professionals say that either their companies are not making improvements to prevent and detect corrupt activity or that they don't know if their companies are doing so.
That said, the trend seems to be toward more proactive solutions. But there is much more that needs to be done, according to Deloitte officials.
"Almost half of the companies that were part of our survey were not planning, or didn't know if they were planning to make any changes," an exec told CFO.com.
There is a lot on the line when it comes to maintaining strong FCPA programs internally. If a company general counsel, CFO or chief compliance officer can prove to prosecutors and investigators that the company takes the law seriously by setting up various programs--from training to reporting to compliance and so on--they will be in line for much more lenient treatment in the face of violation, especially if they self-report.
Bringing technology solutions to bear on the issue will likely look good in the eyes of regulators. So perhaps we're in a classic half-empty/half-full situation. I tend to see the glass as half full, as more companies move to reduce their risks in this area.
- here's the article
FCPA guidance well recieved