Companies must resist temptations to cut corners.

• Jurisdiction: United States
• Date: 01 July 2009
• Author: Latour, Renee,Maki, Jennifer
• Published date: 01 July 2009
• Author: Latour, Renee

* Current economic challenges have forced companies to take cost-cutting measures to protect the bottom line.

Some may be tempted to sacrifice needed compliance-related due diligence measures or skirt risk assessments that should be standard operating procedure for all prospective international business transactions. Others may pursue unfamiliar offshore business opportunities, or relationships with unknown or less-trustworthy foreign partners, agents or third-party intermediaries.

These cost-cutting measures are wrong. Management must counter any temptation to cut corners that could result in violations of the Foreign Corrupt Practices Act (FCPA).

Throughout 2009, the Department of Justice and Securities and Exchange Commission project continued aggressive investigation and enforcement of FCPA. Penalties for violations include billions of dollars in fines as well as criminal sentences.

Thorough evaluation of all prospective foreign partners, agents and third parties should be conducted before ever engaging in international business. The same applies to any targeted international merger and...