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3 Tools You Need for a Total FCPA Compliance Strategy

on December 18, 2014

The Thomson Reuters list of benefits from self-reporting FCPA compliance violations boils down to two very good reasons for self-disclosure: 1) cost savings (from reduced fines and costs related to external monitors and non-prosecution agreements) and 2) reduced distractions from prosecution, non-prosecution agreements, and external monitors.  As the related article mentions, organizations are loath to risk the negative publicity and potentially unnecessary expenses associated with self-disclosure.

At Oversight, we agree with the principle of implementing measures designed to reduce the potential for FCPA problems in the first place. A preventive strategy takes the unknown aspects of self-disclosure off the table. There are many best practices you can put into place to prevent FCPA problems, but for a fully comprehensive, “total package” approach we like to recommend the following three products used in tandem:

  1. Leveraging online FCPA and Global Anti-Corruption training from Thomson Reuters raises awareness and visibility among employees. 
  2. Using Dow Jones Anti-Corruption data to evaluate third-party risk helps to identify and address high-risk third parties before adverse actions take place.
  3. Automatically analyzing and monitoring 100% of the business transactions occurring in high-risk countries can help to identify behavior indicative of FCPA risk so that it can be addressed before it reaches the point of self-disclosure.

With the holidays rapidly approaching, and the start of a New Year just around the corner, January 2015 might be the perfect time to rethink your company’s current strategy for preventing FCPA violations.

None of these approaches are a standalone solution to preventing potential corruption issues.  But together, these anti-corruption solutions can provide a barrier between the business that needs to get things done, and individuals who are tempted to take short cuts to achieving the business’s objectives.  Best of all, these preventive solutions cost only a fraction of the expenses realized by businesses that go through FCPA investigations.