A poll conducted by Deloitte revealed that one third of respondents had no program in place to respond to potential Foreign Corrupt Practices Act (FCPA) violations, despite the fact that 72 percent of respondents foresaw a rise in such violations in the next two years. According to Reuters, the poll determined that the lackluster approach to the severity of FCPA penalties may be the reason why so many companies had not girded themselves against potential violations, with 23 percent citing a failure to grasp the severity of the consequences as reason for unpreparedness. The poll surveyed over a thousand professionals across a variety of industries. “When it comes to FCPA, corporate ignorance is not bliss,” said Deloitte’s Ed Rial. “FCPA enforcement activity is rising dramatically. Recent cases have seen penalties in the hundreds of millions of dollars—a twenty-fold increase over prior cases.”
Deloitte Poll: 34% Lack FCPA Compliance Program
Despite the increased severity of FCPA penalties, many businesses are unprepared for potential violations.
September 14, 2009