A new survey by KPMG Forensic reveals 46% of legal department heads at FTSE350 companies which conduct business in the US either wrongly believe they are immune from US prosecutors or are simply unaware whether they might fall under their jurisdiction.
KMPG surveyed general counsels and company secretaries at FTSE350 companies on their awareness of the US Foreign and Corrupt Practices Act (FCPA), legislation which permits US authorities prosecute foreign companies and individuals with a ‘US footprint’ for corrupt practices involving public officials.
Under the act, UK companies leave a US footprint if they do business in the country or if they use American financial institutions as advisers.
'The lack of awareness by companies of the scope of US anti-corruption laws is especially concerning,' Jennifer Hammond, a director at KPMG Forensic, said. 'The US regulators take an uncompromising approach to this issue, and have carried out an increasing number of investigations since 2001.'
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