fcpa 3rd party relationships

10
Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree How corrupt is your international business? FCPA compliance

Upload: rob-levey

Post on 18-Dec-2014

318 views

Category:

Technology


0 download

DESCRIPTION

 

TRANSCRIPT

Page 1: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

How corrupt is your international business?

FCPA compliance

Page 2: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

The spotlight is on

2010: 50 individuals had been charged and nearly $2 billion collected from FCPA2005: 5 individuals and roughly $16.5 million collected

2009 20100

0.51

1.52

FCPA$ Billions

• Huge press exposure, both USA FCPA & UK Bribery Act

• Criminal liability for company executives

• SEC ‘whistle-blower incentives

Page 3: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

The real cost of FCPA violations

ITT$12B total revenues; 40,000 employees$5B in government contracts; F500

FCPA – China payments case

DCAA audit $0.5M

Fine $1.7M

Legal Fees $4.0M

Post-case monitoring $1.5M

TOTAL COSTS $7.7M

Estimated Costs

Press reports show a fine of $1.7M but the real cost to ITT could easily be in excess of $10M (not including business opportunity cost)

ITT was fined $1.7M for allegedly paying Chinese officials for the sale of water pumps. They were accused of paying $200k in bribes for business worth $4M and after-tax profits of $1M

Page 4: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

The ProblemHow responsive are you?

Are your investigations something like this?

Slow, disruptive & ineffective

Any Investigation ... • Involves many organizations, languages• Collection alerts organization (leads to

cover-up)• Who is key? Who have we missed?• Time is money – the longer this drags on,

the more it costs

Page 5: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

The ProblemA new paradigm

Faster, smarter, more effective investigations• Insight into entire company (not just who you think might be involved)• Non-disruptive (investigate before collection and interviews)• Provide Case Intelligence within days not weeks • Prioritize most important investigations

Don’t wait until it’s too late…• Get ahead • Periodically review your foreign

business relationships• Compliance peace of mind

Page 6: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

360 degree Assessments

Multiple Deployments

360 degree Assessments• Get insight into ‘trouble’ regions• Non-disruptive (investigate before collection and interviews)• Assess key business relationships • Gain compliance ‘peace of mind’

What relationships do we have in Country X ?

Page 7: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

How often do we need these 360 assessments?

Typically 1 or 2 times a year… or as the business dictates … such as…

• Unbelievable sales growth in Brazil?• New R&D trials in China?• New oil exploration contracts

in Nigeria?• etc

Page 8: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

What is involved?

Fast, comprehensive, effective and non-disruptive

• These are not detailed audits of Financials• They are not in-country, covert investigations• They are not reviews of your partnership programs

They are a … comprehensive review of how your company conducts its international business operations

Page 9: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

Live DemoDemo

Page 10: FCPA 3rd party relationships

Copyright © 2011 Catelas Inc. All rights reserved FCPA 360 degree

Thank You

Robert Levey978 996 [email protected]