BRIBERY IN INTERNATIONAL BUSINESS TRANSACTIONS

Transcription

1 BRIBERY IN INTERNATIONAL BUSINESS TRANSACTIONS GLOBAL Headquarters the gregor building 716 West Ave Austin, TX USA

2 TABLE OF CONTENTS I. INTRODUCTION 1BCourse Overview BMajor International Initiatives BImplementing Legislation BMoney Laundering BCorporate Compliance... 3 II. THE EMERGING GLOBAL ANTI-CORRUPTION ENVIRONMENT: THE MAIN INTERNATIONAL INITIATIVES AGAINST CORRUPTION Introduction... 5 The Organization for Economic Cooperation and Development... 5 The Recommendation on Combating Bribery in International Business... 6 The Tax Recommendation and Revised Recommendation... 7 The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions... 8 The Recommendations for Further Combating Bribery of Foreign Officials The Guidelines for Multinational Enterprises The Recommendation on Principles for Transparency and Integrity in Lobbying The Good Practice Guidance on Internal Controls, Ethics, and Compliance The Guidelines to Protect Human Rights and Social Development United Nations Convention Against Corruption Prevention Criminalization Asset Recovery International Cooperation Major Regional Initiatives Against Corruption The Inter-American Convention Against Corruption European Union Convention on the Fight Against Corruption Involving Officials of the European Communities or Officials of Member States Council of Europe Criminal Law Convention on Corruption African Union Convention on Preventing and Combating Corruption Review Questions III. IMPLEMENTATION OF INTERNATIONAL STANDARDS Introduction U.S. Foreign Corrupt Practices Act Anti-Bribery Provisions Exception for Facilitating Payments Affirmative Defenses Department of Justice Recommendations Criminal Enforcement of Anti-Bribery Provisions Civil Enforcement of Anti-Bribery Provisions Accounting Provisions Enforcement of the Accounting Provisions Indicators of FCPA Risks Implications of the Sarbanes-Oxley Act i

3 III. IMPLEMENTATION OF INTERNATIONAL STANDARDS (CONT.) Implications of the Dodd-Frank Act UK Bribery Act Scope of the UK Bribery Act Three Categories of Offenses Bribery of Foreign Public Officials No Facilitating Payments Exception Prosecution and Penalties FCPA Versus UK Bribery Act Other National Implementing Legislation Review Questions IV. CONCEALING CORRUPTION: MONEY LAUNDERING SCHEMES Introduction The Money Laundering Process Placement Layering Integration Money Laundering Methods Using a Front Business to Launder Funds The Real Estate Industry Emerging Payment Methods and Schemes Banks and Other Depository Financial Institutions Money Services Businesses Insurance Companies Casinos Shell Companies Charities and Nonprofit Organizations Calling in a Specialist Alternative Remittance Systems International Anti-Money Laundering Efforts The Financial Action Task Force Other International Anti-Money Laundering Organizations and Initiatives Anti-Money Laundering Legislation U.S. Anti-Money Laundering Laws UK Anti-Money Laundering Laws The U.S. State Department Country Reports Money Laundering Vulnerability Factors SEC/DOJ Bribery Red Flags General Red Flags Transaction-Specific Red Flags Payments Request Red Flags Red Flags Associated with the Suspect Individual The Corrupt Recipient The Corrupt Payer Enforcement and Prevention Strategies Policy Statement ii

4 IV. CONCEALING CORRUPTION: MONEY LAUNDERING SCHEMES (CONT.) Know-Your-Customer Programs Monitoring Accounts Special Problems for Insurance Companies Review Questions V. LIMITING LIABILITY: CORPORATE GOVERNANCE AND FRAUD PREVENTION STRATEGIES Introduction International Corporate Governance Initiatives OECD Principles of Corporate Governance UN Guidance on Good Practices in Corporate Governance Disclosure Corporate Compliance and Fraud Prevention General Elements of an Effective Corporate Compliance Program Corporate Fraud Prevention Strategies Creating a Culture of Honesty and High Ethics Setting the Tone at the Top Due Diligence Training Confirmation Discipline Evaluating Anti-Fraud Processes and Controls Identifying and Measuring Fraud Risks Mitigating Fraud Risks Implementing and Monitoring Appropriate Internal Controls Developing an Appropriate Oversight Process Audit Committee or Board of Directors Management Internal Auditors Independent Auditors Fraud Examiners Bribery Prevention Initiatives Transparency International Business Principles for Countering Bribery The Committee of Sponsoring Organizations Internal Controls Integrated Framework Control Environment Risk Assessment Control Activities Information and Communication Monitoring Anti-Money Laundering Measures The FATF Nine Special Recommendations The USA PATRIOT Act Mandatory Anti-Money Laundering Programs Identification and Verification of Accountholders Restrictions on Shell Banks and Foreign Accounts Suspicious Activity Reports Review Questions iii

5 VI. APPENDIX A: THE ACFE S FRAUD PREVENTION CHECK-UP VII. APPENDIX B: SAMPLE FRAUD POLICY VIII. APPENDIX C: SAMPLE CODE OF BUSINESS ETHICS AND CONDUCT IV. SOLUTIONS TO REVIEW QUESTIONS II. The Emerging Global Anti-Corruption Environment: The Main International Initiatives Against Corruption III. Implementation of International Standards: Domestic Anti-Bribery Legislation IV. Concealing Corruption: Money Laundering Schemes V. Limiting Liability: Corporate Governance and Fraud Prevention Strategies X. BRIBERY IN INTERNATIONAL BUSINESS TRANSACTIONS FINAL EXAMINATION... E-1 XI. INDEX... I-1 iv