The Anti-Corruption Handbook: How to Protect Your Business in the Global Marketplace

The Anti-Corruption Handbook: How to Protect Your Business in the Global Marketplace......Page 5
Contents......Page 9
Organization......Page 15
How to Use This Book......Page 16
About the Contributors......Page 19
CHAPTER 1: Managing Corruption Risk......Page 22
Economic Espionage......Page 23
Developing Effective Compliance Programs......Page 24
Performing Due Diligence......Page 25
Anti-Corruption Detection and Prevention......Page 26
Critical Elements of an Effective Compliance Program......Page 27
Governance and Oversight......Page 30
CHAPTER 3: U.S. Efforts to Combat Global Corruption......Page 32
The Emergence of Nongovernment Organizations......Page 33
Global Forum on Fighting Corruption......Page 34
International Financial Institutions......Page 35
Global Corporate Governance Forum......Page 36
The Emerging Markets......Page 37
Racketeer Influenced and Corrupt Organizations Act......Page 40
RICO Offenses......Page 41
Sherman Antitrust Act......Page 42
Anti-Kickback Act of 1986......Page 43
Economic Espionage Act of 1996......Page 44
Background......Page 48
Anti-Bribery Provisions......Page 50
Third-Party Payments......Page 52
Facilitating Payments......Page 53
Sanctions against Bribery......Page 54
CHAPTER 5: Internal Controls and Accounting Provisions of the FCPA......Page 56
Failed Controls......Page 57
Controls Assessment......Page 58
Conclusion......Page 59
Case Study: Rolling on a River......Page 60
CHAPTER 7: Do Not Crimp: The Need for Oversight of Foreign Operations......Page 64
Pitfalls of Emerging Markets......Page 65
Monitoring Behavior......Page 66
Education and Communication......Page 67
Case Study: Bribes in the USSR......Page 68
CHAPTER 8: The Human Factor......Page 70
Behavioral Root Causes of Fraud and Corruption......Page 71
Understanding Management Fraud......Page 72
Approaches to Deterring and Mitigating Financial Fraud Risk......Page 73
Enterprise Risk Management: Create Stronger Governance and Corporate Compliance......Page 76
Mitigating Risk......Page 78
Ascertain Risk Areas......Page 79
Establishing Procedures to Mitigate Risk......Page 80
Blowing the Whistle on Corporate Fraud......Page 81
Brad Preber and Trent Gazzaway......Page 82
Pulling Out the Earplugs......Page 83
Understanding Stakeholders and Their Needs......Page 84
Steps of the MACH Process......Page 88
Monitoring the MACH Process......Page 99
Conclusion......Page 100
Appendix......Page 102
CHAPTER 11: Document Retention......Page 104
Reduce Risk through Technology......Page 105
The Most Common Computer-Related Crimes......Page 106
The Value of Stored Data......Page 107
CHAPTER 12: Information Security: Intellectual Property Theft Is Often the Result of Government Corruption......Page 108
Classification of Information......Page 110
Information Security Control Officers or Custodians......Page 111
Education and Training......Page 112
Employee Orientation......Page 113
Separation Plans......Page 114
Physical Security......Page 115
Systems Security......Page 116
E-Mail Policy......Page 120
Solicitations for Information......Page 121
Joint Venture/Vendor/Subcontractor Procedures......Page 122
Contractual Provisions with End Users......Page 123
Action Plans......Page 124
Information Security Policy......Page 125
CHAPTER 13: Anti–Money Laundering: The USA PATRIOT Act......Page 126
Current State of AML in the Global Marketplace......Page 127
Case Study: The Boys from Brazil......Page 130
CHAPTER 14: Procurement Fraud: Detecting and Preventing Procurement and Related Fraud......Page 132
Kickbacks......Page 133
Bid Rigging......Page 134
Defective Pricing and Price Fixing......Page 135
Contract Fraud......Page 137
Cost/Labor Mischarging......Page 139
Case Study 1: Employee Fraud......Page 141
Conclusion......Page 142
James Schmid......Page 144
Common Construction Company Fraud Schemes......Page 145
Strengthen Your Internal Controls......Page 147
CHAPTER 16: Special Investigations: How to Investigate Allegations of Corruption......Page 150
An Interested Party: The Auditor......Page 151
The Special Investigation......Page 153
Prevention Is Key......Page 154
FCPA Enforcement......Page 156
Record Keeping......Page 159
Transborder Data-Flow Issues......Page 160
Why Collective Action against Corruption?......Page 164
Business Costs of Corruption......Page 165
Different Views of the Private Sector......Page 166
Corruption Dilemma......Page 167
CHAPTER 19: Leveling the Playing Field......Page 178
Book Research Summary......Page 182
Grant Thornton Publications......Page 183
Outside Publications......Page 184
Index......Page 186