It appears that the authorities involved in the areas of bribery and anti-corruption still have a lot more to do in getting their message across to the corporate world. This is one of the clear messages that comes out of the recently released 2010 global fraud survey carried out by Kroll.
A little over a third of the companies who took part in the survey revealed that they did not believe that the two key pieces of legislation in the US and the UK, ie in the US the Foreign Corrupt Practices Act and in the UK the Bribery Act, were directly applicable to them. Given the fairly considerable publicity accorded to the Bribery Act in the UK, and indeed to the number of fairly high profile prosecutions that have been brought pursuant to the FCPA in the US the statistic is to say the least, surprising.
The survey has also revealed that in spite of this, well over three-quarters of the companies involved in the survey admitted to having suffered some form of fraud during the previous 12 months and further that a number of the companies are extremely concerned about the issue of corruption with many citing it as a reason for restricting the expansion of their business into new areas and new jurisdictions.
One of the clear messages from the survey is that companies are simply not prepared for the increase in regulatory activity that everybody is seeing in relation to the fight against corruption.
There is no doubt more must be done.
A link to the full report is set out below.