How Morgan Stanley's effective anti-corruption risk management and compliance framework helped avert regulatory action
Introduction
Continued enforcement of the US Foreign Corrupt Practices Act ('FCPA'), coupled with the introduction of the UK Bribery Act ('Bribery Act') and proposed tightening of the provisions for foreign bribery in the Australian Criminal Code mean that bribery and corruptions is a topic that will not go away.
In this article, Jarrod Baker discusses a recent FCPA case development that highlights the benefits of being proactive and developing a robust anti-corruption risk management and compliances framework.
Why you need to take this seriously
An Australian company can be fined at least $11 million under the Australian Criminal Code for the offence of bribing a foreign public official (i.e. the company may be liable for an act of bribery committed by an employee or someone acting on the company's behalf, regardless of whether they are Australian resident or citizens).
The Bribery Act makes business to business illegal and applies to an non-UK company if they conduct any part their business in the UK part of its business is completely unrealated to the alleged bribery.
The FCPA concerns bribing if non-US public officials and not only applies to the conduct of US companies operating abroad but also to non-US companies who:
- Issue securities in the US
- Have US operations
- Have any nexus to the US that is used in the information of bribes being paid anywhere in the world (including but not limited to the use of the US mail system or wire transfer via a US bank).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
