Stay current on changes and developments in corporate law with a wide variety of resources and tools.
Sept. 9 — Some U.S.-listed companies must do more to manage their third-party bribery and corruption risks, a Sept. 8 KPMG survey suggests.
“Auditing third parties for compliance” ranked as a top anti-bribery and corruption challenge, according to the survey conducted by KPMG International together with Singapore Management University.
Despite that, only 68 percent of U.S.-listed respondents said their companies have a formal process to identify high-risk third parties in the anticorruption and bribery context, the survey found.
Rocco deGrasse, a principal in KPMG LLP’s Forensic Advisory Services, told Bloomberg BNA that the percentage of U.S.-listed companies that said they had a formal process to identify high-risk third parties appeared low, despite this percentage being higher than the global pool of survey respondents claiming to have a formal process (53 percent).
U.S.-listed companies operate in a “very rigorous regulatory regime,” he said, adding that “everyone recognizes that third-party risks are very high.”
“Greater regulatory scrutiny provides a greater incentive for companies in jurisdictions such as the U.S. and the U.K. to formalize and enhance existing anticorruption programs—so one expects these entities to be further along in overall compliance program development,” deGrasse said.
The survey also found that despite 73 percent of U.S.-listed companies indicating that mergers and acquisitions are part of their growth strategy, only slightly more than half of the respondents said their companies include anti-bribery considerations as part of the pre-acquisition due diligence process.
DeGrasse noted that anti-bribery and corruption risks associated with M&A deals have been out there for a few years and he expected more companies to include it in their due diligence.
It is a big risk to take on certain targets, he said. “Certainly I would have thought the numbers would have been a little higher.”
To contact the reporter on this story: Michael Greene in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Yin Wilczek at email@example.com
KPMG's press release is available at http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Press-Releases/Pages/Failure-To-Monitor-Third-Parties-Heightens-Bribery-And-Corruption-Risks-KPMG-Survey.aspx.
The full survey is available at https://assets.kpmg.com/content/dam/kpmg/pdf/2015/09/anti-bribery-corruption-2015.pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)