Here’s one situation you absolutely never want to find yourself in as a business…
Paying $130 million in penalties for FCPA (Foreign Corrupt Practices Act) violations.
That’s exactly what happened to Deutsche Bank AG in 2021 after providing gifts and entertainment to government officials in China to help establish a clean-energy investment fund.
Every region and country around the world has its own cultural norms about what is standard practice when it comes to conducting business. And oftentimes, what is perfectly normal and legal in one place, is completely illegal in another.
In fact, it may be nearly impossible to conduct business in some places without opening yourself up to liability in the U.S. Whether it’s the FCPA, the Bank Secrecy Act, the Patriot Act or Sarbanes Oxley, you can’t afford to unwittingly find yourself on the other end of these laws.
In fact, 97% of FCPA violations occur because someone in one of your supply chains is doing business corruptly and making transactions through U.S. bank accounts. And it’s your responsibility to show that you conducted the due diligence necessary to prevent any such supply chain corruption.
So what can you do to prevent your company from unwittingly entering into a similar situation like Deutsche Bank AG that will not only bankrupt your business but also lead to the kind of reputational damage you may never recover from? Or what can you do if such a situation has already occurred?
It comes down to making sure your due diligence is as thorough and accurate as possible. Due diligence services and boots on the ground intelligence from Infortal can uncover hidden corruption risks with any business or person you are conducting business with, such as bribery, money laundering and other financial crimes, or institutional corruption throughout every one of your supply chains.
Our due diligence investigations help you understand fraud, bribery and corruption issues so your organization can avoid unnecessary risk exposures.
Protecting your corporation’s Board of Directors, shareholders and employees are part of key risk mitigation strategy.
Infortal has screened workforces for Fortune 100 companies, banks, law firms for 30 years including nationwide and international hires.