Regulators cooperate to target corporate governance

Author: Zoe Thomas | Published: 24 Feb 2014

Law enforcement authorities are cooperating more closely in tackling international fraud and bribery cases, leading to an increase in prosecutions and penalties around the world last year.

A related trend in the US is the contraction of the disclosure gap between regulated and unregulated entities. This is forcing businesses to reconsider how and when they go public, where they operate, and how they manage their relationships with third party distributors.

The expanding power of authorities to act across borders and on issues that did not traditionally fall under their purview, along with the growing number of local anti-corruption and bribery regimes, may cause some companies to change the way they do business, both locally and internationally.

"Notwithstanding the DoJ's [Department of Justice] attempts to be transparent about its FCPA [Foreign Corrupt Practices Act] enforcement efforts, the outer boundaries of FCPA liability are constantly shifting," said Adam...