COVID-19 continues to have an impact on global business. As companies try and navigate these murky waters, corporate compliance departments are becoming a favored place to cut overhead. This mistake could cost a company far more money than is realized, yet their value is still not understood.
The stakes are high when orchestrating an acquisition or retaining third parties to represent your business, especially outside the US. The lack of proper due diligence can cost an organisation money and reputation.
Recently, HSBC announced that it was under investigation by the Securities and Exchange Commission (SEC) for its hiring practices in Asia. HSBC’s practice of hiring employees based upon their ties to government officials may violate the U.S. Foreign Corrupt Practices Act (FCPA).
In this compliance update we analyze the increasing use of off-shore jurisdictions by third party vendors to elude taxes and hide illegal or unethical conduct, including bribes and kickbacks.