The FCPA Report

The definitive source of actionable intelligence covering the Foreign Corrupt Practices Act

Articles By Topic

By Topic: Emerging Markets

  • From Vol. 6 No.6 (Mar. 29, 2017)

    ENSafrica Survey Shows State of Corruption and Compliance in Africa 

    Companies doing business in Africa may need to pay closer attention to their anti-corruption programs, a recent survey indicates. Law firm ENSafrica conducted a survey of companies operating in certain countries on the continent which revealed both a significant threat of bribery and corruption and a less-than-sufficient response to this threat. We analyze the survey results. See “Regional Risk Spotlight: Ayoka Akinosi Discusses the Crackdown on Corruption in Nigeria” (Feb. 24, 2016).

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  • From Vol. 5 No.25 (Dec. 21, 2016)

    Opportunity in Expansion: A Logistical Look at FCPA Compliance in Third-Party Relationships

    Expanding into a new market can be a moment of great risk for any company. These risks are heightened in the shipping and logistics industry where spreading geographic reach and reliance on consultants and independent contractors is necessary for success. In a guest article, Catherine Muldoon, the chief legal officer of BDP International, Inc., a leading privately held global logistics and transportation services company, and legal intern Caitlin Smith discuss the challenges BDP faced when opening new offices in Casablanca, Morocco, and how the company leveraged its culture of compliance to achieve both its business and ethical goals. See “Ten Steps A Company Can Take to Mitigate Corruption Risk When Entering a New Market (Part One of Two)” (Jun. 24, 2015); Part Two (Jul. 8, 2015).

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  • From Vol. 5 No.18 (Sep. 14, 2016)

    TI Finds That Companies in Emerging Markets Need to Improve Transparency

    A recent survey by international anti-corruption watchdog Transparency International found that companies based in emerging markets are less transparent about their anti-corruption programs than large global companies. The study examined publicly available information from 100 emerging market companies regarding anti-corruption programs, organizational transparency and country-specific reporting of tax and financial information. This article summarizes the key takeaways from the study and TI’s recommendations. See “Ten Steps A Company Can Take to Mitigate Corruption Risk When Entering a New Market (Part One of Two)” (Jun. 24, 2015); Part Two (Jul. 8, 2015).

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  • From Vol. 5 No.4 (Feb. 24, 2016)

    Regional Risk Spotlight:  Ayoka Akinosi Discusses the Crackdown on Corruption in Nigeria

    Nigeria recently overtook South Africa as Africa’s largest economy with a nominal GDP of $500 billion. Its abundance of natural resources, including the tenth-largest proven reserves of petroleum in the world, allows the economy room for even more growth in mining and manufacturing. In this installment of the Regional Risk Spotlight, The FCPA Report spoke with Nigerian attorney Ayoka Akinosi, a visiting specialist at Hughes Hubbard, about the recently elected Nigerian President’s anti-corruption efforts and the information challenges companies may face when performing due diligence and internal investigations in Nigeria. See also “Regional Risk Spotlight: Samuel Nam of Kim & Chang Discusses a South Korean Anti-Corruption Landscape in Flux” (Jan. 27, 2016).

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  • From Vol. 5 No.3 (Feb. 10, 2016)

    Kevin Abikoff of Hughes Hubbard Discusses the Benefits and Risks of African Local Content Laws

    Foreign investment in a country has historically been a double-edged sword. While investment may allow elites to prosper, often the benefits do not flow to the general population. In response to this pattern, many countries have adopted “local content laws” that require a certain level of reinvestment by foreign companies into the countries where they operate. While these programs can have clear benefits in terms of technology transfer and local ownership, they can also be a source of corruption risk, as Japanese conglomerate Hitachi learned in 2015 when it was fined $19 million for corruption related to its local partner. The FCPA Report discussed how to navigate these programs when doing business in African countries, where they are prevalent, with Hughes Hubbard partner Kevin Abikoff. He explained why local content laws are beneficial but also how they can lead to corruption, and what companies can do to avoid problems when working with local partners. See “Lack of Training and Due Diligence Leads to $19 Million Penalty for Hitachi” (Oct. 7, 2015).

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  • From Vol. 4 No.20 (Oct. 7, 2015)

    How to Avoid Corruption When Handling Logistical Issues in Emerging Markets

    Setting up shop in an emerging market exposes a company to a myriad of corruption risks.  Logistical activities, such as ensuring that the company has access to public safety services or that it is able to import the parts it needs for its factory, involve significant risks that don’t exist when a company is operating in a more established market.  This article examines the specific risks companies face when conducting day-to-day activities in a volatile market.  See also “Ten Steps A Company Can Take to Mitigate Corruption Risk When Entering a New Market (Part One of Two),” The FCPA Report, Vol. 4, No. 13 (Jun. 24, 2015); Part Two, Vol. 4, No. 14 (Jul. 8, 2015).

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  • From Vol. 4 No.19 (Sep. 23, 2015)

    Regional Risk Spotlight:  Jay Holtmeier of WilmerHale Explains How to Navigate Bureaucratic Corruption Risks in India

    As the world’s second-most populous country, India presents myriad opportunities for foreign companies to sell and manufacture their products.  As an English-speaking nation with a highly educated populace, it has also become a hub for outsourcing services such as customer relations and technical support.  On the other hand, as a legacy of its colonial past, India is highly bureaucratic and companies doing business there face an intricate web of government regulations and licensing requirements, creating corruption risk.  In this installment of The FCPA Report’s Regional Risk Spotlight series, we talk to Jay Holtmeier, a partner at WilmerHale, about how companies can best navigate corruption risks in India and build strong compliance programs while doing business there.  See also “Regional Risk Spotlight:  Thomas Firestone of Baker & McKenzie Explains How to Navigate Corruption Risks in Russia,” The FCPA Report, Vol. 4, No. 16 (Aug. 5, 2015).

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  • From Vol. 4 No.14 (Jul. 8, 2015)

    Ten Steps a Company Can Take to Mitigate Corruption Risk When Entering a New Market (Part Two of Two)

    Expanding into new markets provides companies with unparalleled opportunities for growth, but establishing operations in a new location requires a company to navigate numerous corruption landmines.  The FCPA Report’s ten-step guide to mitigating corruption risk when entering a new market is designed to help companies create and implement an effective market-entry strategy.  This second article in the series discusses the final six steps: addressing logistical challenges; making disclosures to local governments; creating an integration plan; establishing a compliance program; implementing internal controls; and monitoring and reviewing that program.  The first article in the series addressed the first four steps, including how a company can build a risk profile for the country; the various methods companies can use to enter new markets; and how to mitigate the risk from local partners and other third parties.  See also “Gibson Dunn Attorneys Take the Pulse of Anti-Corruption Risks in Emerging Markets,” The FCPA Report, Vol. 3, No. 3 (Feb. 5, 2014).

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  • From Vol. 4 No.13 (Jun. 24, 2015)

    Ten Steps A Company Can Take to Mitigate Corruption Risk When Entering a New Market (Part One of Two)

    New markets promise tremendous opportunities for growth and expansion, but also are filled with potential corruption landmines – new business partners, different cultural norms and local laws are only a few of the issues that can trip up a company.  The FCPA Report's ten-step guide to mitigating corruption risk when entering a new market will help companies create and implement an effective market-entry strategy.  This, the first article in a two-part series, discusses the first four steps: how a company can build a risk profile for the country, the various methods companies can use to enter new markets and how to mitigate the risk from local partners and other third parties.  The second article will address: logistical challenges, disclosures to local governments, integration plans, compliance programs and monitoring and reviewing the compliance program.  See “Gibson Dunn Attorneys Take the Pulse of Anti-Corruption Risks in Emerging Markets,” The FCPA Report, Vol. 3, No. 3 (Feb. 5, 2014).

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  • From Vol. 3 No.3 (Feb. 5, 2014)

    Gibson Dunn Attorneys Take the Pulse of Anti-Corruption Risks in Emerging Markets

    The anti-corruption enforcement landscape is changing and emerging markets, with their endemic cultures of corruption and vast economic opportunity for many multi-national companies, are at the forefront of that change.  Many are implementing and enforcing their own laws, but the deep-seated risks of corruption still exist.  A recent panel of emerging market experts from Gibson Dunn & Crutcher LLP highlighted the current anti-corruption initiatives and trends in key foreign markets.  The presentation, “FCPA Trends in the Emerging Markets of China, the Middle East and Africa, Russia and India,” featured Gibson Dunn partners F. Joseph Warin, Benno Schwarz, Kelly S. Austin and Peter Gray.  See also “Lessons from the Latest Anti-Corruption Developments in the U.K., Brazil and China,” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013).

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  • From Vol. 2 No.1 (Jan. 9, 2013)

    How Private Fund Managers Can Manage FCPA Risks When Investing in Emerging Markets

    Anti-corruption enforcement efforts have dramatically increased over the last few years.  Every day it seems there is a new headline about an investigation involving alleged violations of the FCPA.  Federal authorities have indicated that their FCPA enforcement efforts are increasingly focused on the financial services industry and, in particular, private fund managers that invest in emerging markets.  Given this heightened level of government scrutiny, it is important that private equity firms, hedge fund managers and other investors that conduct business in foreign markets understand the associated FCPA risks.  Such risks can arise in the context of raising funds overseas, working with joint venture partners and third party agents, and investing in companies that operate in countries known for corruption.  A potential misstep in these areas can result in a fund manager and its employees facing significant civil penalties and possible criminal prosecution or, at a minimum, having to respond to government subpoenas or requests for information in connection with an investigation by federal authorities, thus resulting in the unnecessary expenditure of time and money and the attraction of unwanted attention.  In a guest article, Justin V. Shur and Joel M. Melendez, partner and associate, respectively, at Molo Lamken LLP, consider some of the important and recurring FCPA risks that arise for investors in emerging markets, and offer practical guidance to help private fund managers and their employees avoid or minimize liability in this area.

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  • From Vol. 1 No.12 (Nov. 14, 2012)

    Deloitte Survey Catalogues Bribery Risks in Emerging Markets and Outlines Compliance Recommendations

    On October 29, 2012, Deloitte Financial Advisory Services LLP released its fifth annual survey on business executives’ approaches on compliance and integrity-related risks in emerging markets.  This article summarizes Deloitte’s findings, including recommendations for effective compliance and integrity-related risk management for companies operating in emerging markets.

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