ForThoughts Edition 14: FCPA Due Diligence in M&A
Issues in Forensic Accounting
Given the increasing enactment and enforcement of anti-bribery laws worldwide, companies would be wise to consider expanding their financial and legal Mergers and Acquisitions (M&A) due diligence efforts aimed at uncovering possible corrupt practices.
From January 2006 to the end of 2008, the Securities and Exchange Commission (SEC) brought 38 Foreign Corrupt Practices Act (FCPA) anti-bribery enforcement actions – more than were brought in all prior years combined since the FCPA became law in 1977.
According to this edition of ForThoughts, global business expansion and broad interpretation of what constitutes corruption has created a climate that makes it prudent for companies to have a robust FCPA compliance program that may include a risk-based assessment of the target company’s business.