Josh Martin – Agenda-A Financial Times Service – February 21, 2012
Corporate boards and executives are facing a perfect storm of anti-fraud enforcement in 2012 as regulatory agencies in different countries increasingly coordinate their actions, targeting individuals as well as companies. The regulators’ aggressive stance is challenging boards at multinational corporations to demand more rigorous internal enforcement of anti-fraud compliance.
“The Department of Justice will not accept defenses which [claim] ignorance of the law or a failure to exercise due diligence,” says Daniel Karson, chairman for the Americas at Kroll Associates. “You’re not going to get away with simply saying you gave third parties a copy of your code of conduct.”
Data compiled by Miller & Chevalier in its 2012 Winter Review show that the number of individuals facing trial on U.S. Foreign Corrupt Practices Act–related charges has surged in the past three years, from only four cases in 2009 to 19 cases scheduled for this year, with another 22 awaiting trial dates.
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