THE IMPACT OF ANTI-BRIBERY LAWS ON YOUR ORGANIZATION

MARCH 2014

THE IMPACT OF ANTI-BRIBERY LAWS ON YOUR

ORGANIZATION & IMPLEMENTING A COMPLIANCE

CULTURE

WWW.AWAS.COM © AWAS (IRELAND) LIMITED

HOW CAN BRIBERY / CORRUPTION IMPACT

ON YOUR BUSINESS?

8 OF THE TOP 10 FCPA ENFORCEMENT ACTIONS OF ALL TIME INVOLVE

NON-US CO.S

• SIEMENS (GERMANY): $800 MILLION IN 2008

• BAE (UK): $400 MILLION IN 2010

• TOTAL S.A. (FRANCE) $398 MILLION IN 2013

• SNAMPROGETTI NETHERLANDS (HOLLAND): $365 MILLION IN 2010

• TECHNIP S.A. (FRANCE): $338 MILLION IN 2010

• JGC CORPORATION (JAPAN): $218.8 MILLION IN 2011

• DAIMLER AG (GERMANY): $185 MILLION IN 2010

• WEATHERFORD INTERNATIONAL (SWITZERLAND): $152.6 MILLION IN 2013

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ONGOING INVESTIGATIONS

Avon Products Inc. - world’s largest direct seller of beauty products

could pay up to US$132 million to settle bribery probe under FCPA.

Rolls-Royce - world's second-largest aircraft engine manufacturer

announced in December 2013 that the Serious Fraud Office had

launched an investigation into possible bribery in China and Indonesia.

Wal-Mart Stores, Inc. – world's largest retailer expects to spend up to

$240 million on FCPA-related matters and compliance in 2015. Wal-

Mart has already spent more than $300 million in this area.

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INDIVIDUALS PAY THE PRICE....

Siemens AG – in February, the largest ever civil penalties for

individuals relating to bribery was imposed on 2 former Siemens

executives. Each was ordered to pay a $524,000 penalty.

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Petro Tiger Ltd. – former CEO of the British Virgin Islands oil

and gas company was charged with FCPA-related offenses in

February. The company's former General Counsel also pleaded

guilty to bribery.


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ANTI-BRIBERY LEGISLATION

USA - Foreign Corrupt Practices Act, 1977 (FCPA)

Ireland - Prevention of Corruption Acts, 1889-2010

UK - Bribery Act, 2010


WHAT IS A BRIBE?

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What specific actions are prohibited?

OFFERING, GIVING or agreeing to offer or give a GIFT as an

INDUCEMENT OR REWARD to a person who can TAKE OR INFLUENCE

AN ACTION OR INACTION in relation to their own position or office or

AWAS’ affairs or business.

ACCEPTING, OBTAINING or agreeing to accept or obtain a GIFT as an

INDUCEMENT OR REWARD from a person for any action or inaction by

AWAS.

What constitutes a gift?

Cash or cash equivalents

Kickbacks

Certain corporate entertainment

Contributions to any political party


EFFECTIVE PREVENTION OF BRIBERY

Clear and well communicated policy prohibiting bribery

Strong commitment from Management to the company's

compliance programme / Policy and positive support for its

observance

Policy applicable to all levels of the company (directors, officers,

employees and subsidiaries)

Clear reporting mechanism and protection through anonymity

Effective control over:

(i) gifts

(ii) hospitality, entertainment

(iii) travel expenses

(iv) political / charitable donations

(v) facilitation payments

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EFFECTIVE PREVENTION OF BRIBERY cont’d.

Inform business partners of the company’s commitment to

abiding by anti-bribery laws and of Policy

Ensure periodic communication & documented training on the

compliance programme / Policy for all levels of the company

Periodic reviews of Policy / compliance programme to improve

effectiveness & align with evolving international standards

Appropriate disciplinary procedures to address violations or

failure to report suspected violations

Zero tolerance of retaliation against

whistle blowing

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USE OF GIFT REGISTERS, MONETARY

THRESHOLDS & EFFECTIVE MONITORING

Gifts come in many guises – extravagant or frequent

entertainment can have the same effect as generous gifts

Consider absolute prohibition or the use of monetary thresholds

at which (a) notification must be made or (b) approval is required

How to monitor?

(i) Gift Register

(ii) Expense Reimbursement

(iii) Expense Reports

(iv) Escalation to Management

(v) Governance Board review

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CORRUPTION AROUND THE WORLD

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QUESTIONS AND ANSWERS SESSION

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USEFUL SOURCES OF INFORMATION

Transparency International (http://www.transparency.org)

Convention On Combating Bribery Of Foreign Public Officials In

International Business Transactions - Organisation for

Economic Co-operation and Development (“OECD”)

“Good Practice Guidance on Internal Controls, Ethics, and

Compliance” - OECD

United Nations Convention Against Corruption

FCPA Blog (http://www.fcpablog.com)

Ethical Alliance Daily (http://ethicalalliance.org)

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http://www.transparency.org/







http://www.fcpablog.com/







http://ethicalalliance.org/

Documents

THE IMPACT OF ANTI-BRIBERY LAWS ON YOUR ORGANIZATION