Tracey Stretton offers some strategies for avoiding & managing regulatory violations
Last year the US government levied hefty fines against businesses engaged in corrupt practices. Daimler AG agreed to pay $185m in fines and penalties and BAE Systems plc paid a $400m criminal fine to the US government and a €30m fine to UK regulators. The US is not alone in its quest to stamp out bribery and corruption—there has been a global increase in investigations, not only into bribery and corruption, but also into cartels and breaches of securities laws.
EU cartel settlements reached £3bn in 2010 with more potentially significant cases in the pipeline (“Rise in EU Anti-trust Settlements Anticipated”, 23 December 2010, FT.com). There has also been an expansion of the scope of the Foreign Corrupt Practices Act (FCPA) in the US.
Regulators are extending their territorial reach, co-operating across borders and talking about becoming more proactive in seeking out corrupt practices. Given the severe penalties and reputational damage associated with regulatory breaches companies need to adopt a proactive response to avoid business conduct that might result in violations
