Thirty eight countries from around the world make up the anti-corruption organization called the OECD Working Group. This group focuses on all cases of corruption focusing specifically on cases of bribery.A few months ago at a convention, the government of Turkey was recognized for their continued effort in the fight towards ending corruption and bribery in their country, and for the continued efforts to comply and follow the procedures that are outlined by the OECD.  The country is now in what is called the Phase 2, and as noted, the government consistently takes the necessary steps towards following the recommendations of the Working Group.

Two cases of bribery are being investigated in Turkey, cases of foreign corporations and their allegations regarding situations surrounding the United Nations’ program of Oil-for Food.  The American organization of the Foreign Corrupt Practices Act monitors and investigates foreign corruption cases concerning the US companies. The members of the Turkish parliament are drafting laws that reflect the nature of the FCPA for their own country, their own corporations and the way in which they handle their foreign business affairs.  For now, although it is not considered a legal practice yet, they have begun the effort to raise the awareness of their business leaders and community, to the effects of such acts of corruption and bribery, and to inform those leaders of the consequences of bribing public officials.

However, until those companies are held legally liable for cases involving foreign bribery, the Working Group will not see the country of Turkey as being in compliance with their regulations and their recommendations.  In order for them to become compliant they must draft a set of laws regarding the liability of corporations and companies, that will hold them subject to legal prosecution when those laws  are broken.  Once Turkey does enact these laws, the Working Group has recommended that group of peers, lawyers, be assigned to review and analyze those laws.  The two cases currently under investigation will go to court in December of this year, and it has also been suggested that the peer group of lawyers sit in on those proceedings as well.  Turkey is one more country that is joining in the anti-corruption fight.

Turkey Joins with the OECD Working Group in the Anti-Corruption Fight is a post from: LostHawk

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1. Bribery and Political Corruption
2. What Does the Foreign Corrupt Practices Act Consider to be Bribery?
3. Political Corruption and the Effects on Society

In this age of corruption,  and this age of the battle against corruption, the question that arises when dealing with foreign customs and rituals, is just what does the governing body set out by the Foreign Corrupt Practices Act deem as bribery?  The Act defines acts of bribery as payments made to or from foreign government officials which constitute the attempt to maintain or to acquire business in that country or with that government.  A gift or payment at this time, to a corporate officer or a corporation that is not connected with the government, one that is in the private sector, is not precluded.

Similarly gifts or tokens given to those in foreign governments whom have no authority over the possibility of maintaining or being awarded with enhanced business opportunities are also not in violation of the act.  Bribery is still bribery, even when given another name, and if a foreign official is serving as one’s agent and it can be proven that the gift was a commission, for their assistance in gaining any sort of contract one will not be immune from the sanctions and the investigations of the Act.

In an act under investigation recently, concerning the promise to a member of the ministry of a foreign governmental office, which involved the promise made by a United States company to insure the American schooling of the officials daughter, wherein the company was found innocent of corruption charges, it was evident of the aggressive nature of the Department of Justice.   And their continued monitoring of favors and gifts of any kind.  Now, there is a degree of legal latitude concerning circumstances wherein the payments made to officials of the government do not violate the laws of the FCPA, these are known as grease payments.

Even though these kind of payments are made in order to ensure continued business opportunities, due to the fact that they are made in an attempt to secure or expedite an otherwise lawful transaction, they are exempt.  It is often times difficult to distinguish what constitutes a bribe wherein cultural differences are concerned, but policies are clear and there are experts to consult should one be curious as to their own actions, and the consequences of those actions.

What Does the Foreign Corrupt Practices Act Consider to be Bribery? is a post from: LostHawk

Related posts:

1. Bribery and Political Corruption
2. Turkey Joins with the OECD Working Group in the Anti-Corruption Fight
3. Political Corruption and the Effects on Society

When many people think of bribery, what immediately comes to mind is political corruption.  Politicians accepting payment for foreign business to have access to the economic opportunities of their country.  Or perhaps it is the politicians themselves who are making the bribes, in order to guarantee votes in upcoming elections.  The thing is however, is that bribery happens in every sector, the public sector, the social and business and legal worlds are filled with cases of bribery.

It is considered to be a white collar crime.  A crime that is constituted as the giving of money, of presents or of favors that are given and received in an attempt to sway decisions, or opinions, or views.  And whenever it takes place it is considered a crime punishable by legal action.  When a public official accepts or offer this form of payment and they are found guilty the consequences are either/or imprisonment for up to fifteen years and a fine of at least three times of the amount that had changed hands in the crime.  In the future the individual would no longer be allowed to hold any government nor political office every again in the United States.

And should someone be found guilty of offering a bribe to one who holds public office, they too shall face fines and imprisonment for up to two years.  In the judicial system, one found guilty for accepting, receiving or demanding a bribe for altering their testimony in a court of law, faces as well fines up to three times the amount of the original bribe as well as jail time.  Bribing a witness also has consequence of imprisonment and/ or hefty fines.  The FCPA, Foreign Corrupt Practices Act was created in 1977 by the United States Congress stating that any bribery of political officials, of those in the United States and those out of the country was illegal.  Until then it had been commonly practiced and was not something that was punishable by law.

Bribery and Political Corruption is a post from: LostHawk

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1. Political Corruption and the Effects on Society
2. What Does the Foreign Corrupt Practices Act Consider to be Bribery?
3. Turkey Joins with the OECD Working Group in the Anti-Corruption Fight

What exactly does it mean to know your customer?  How important is it?  And why is it important in the first place?  To know your customer simply means to know who you are dealing with, with whom your name or your businesses name will be connected.  This has to do with performing measures on a regular basis when signing on knew clients or business partners and associates.  The due diligence of collecting and analyzing information about the identity of and the past actions of individuals and companies throughout the world.

This has not only been recommended through provisions in the U.S. Patriot Act and the Bank Secrecy Act it is now required by law.  The policy of know your customer is extremely important for various reasons, not withstanding the consequences of federal charges and prosecution.  The act serves to uncover those who are involved in identity theft, fraud, money laundering and terrorist financing.

There are lists of suspected terrorists and money launderers available online through the Office of Foreign Assets Control.  That is the first step an individual or a corruption is likely to take when considering the new business partner or venture.  The list is extensive and updated each month.  There are also third party companies that investigate and keep track of those that are found to be high-risk individuals or companies, due to past actions or criminal involvement with corruption.

Aside from matching names on a list, it is also important to check the businesses records, including the accuracy of the accounting departments.  The trouble begins when a company does not thoroughly investigate future clients or customers.  If those customers are found to have broken laws in the past, or break the laws while one is involved with them, they will also find themselves the subjects of investigation and possible prosecution.

What it Means to Know Your Customer is a post from: LostHawk

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Corruption is not only an overt act or practice, but it occurs when one simply does not offer the truth.  Keeps the truth hidden.  Many people in the world are demanding that the gap between a politician’s public life and their private life and accumulated assets and financial holdings be lessened.  The entire legal system is in question, when a politician will avoid legal issues while ensuring that their wealth accumulated through corrupt practices is kept safely off of the shores of their country, in a foreign financial institute.  This is currently an issue in Africa,  as well as many countries throughout the world.  The fact that Africa is riddled with corruption in the political realm, is known throughout the world.

What is questioned ethically and morally, is that when the government of a country has such a difficult time providing the basic needs of the people of their country, as far as enough food for the people to eat and safe water to drink, electricity, plumbing and proper housing…when the officials of such a country can not provide these basic needs, how is it acceptable that there is more that four hundred billion dollars in the Swiss bank accounts of many of Africa’s heads of state.  This is a problem that is difficult to tackle and resolve because many are not acknowledging it, and is one of the most dire problems in the country today, and not much has been done, or is being done currently to rectify the situation.

The growth in the economic sector has been on the rise, and much of that growth is owed to foreign investments.  However, even as the economy of the country is on the rise, the poverty levels remain the same.   Much is reported in the news about the mass starvation and the issues of extreme poverty in Africa, but for some reason the fact that corruption runs rampant throughout the country is never discussed and never considered to associated with the state of the society.  This is one of the elements in the simple definition of corruption, that when the officials of a company are involved in corruption, the entire society suffers.

Political Corruption and the Effects on Society is a post from: LostHawk

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1. Bribery and Political Corruption
2. Turkey Joins with the OECD Working Group in the Anti-Corruption Fight
3. What Does the Foreign Corrupt Practices Act Consider to be Bribery?

Companies can save themselves worry and headache concerning the policies of regulatory compliance simply by sufficient preparation and planning.  This may mean that they must readjust their actions in the work place regarding the security of information and the necessity to ensure that the privacy of clients is protected.  In some cases, such as health care facilities or domestic violence shelters, this simply means that all files and paperwork is documented using assigned numbers, and not the names of the clients.  And due to the additions and the amendments to the guidelines and the laws that are outlined by HIPAA, the Health Insurance Portability and Accountability Act, upper management must take time and give attention to situations and practices that may have before been only on the periphery.

Companies such as these can design their own system of the management of risk, which will bring to the surface any holes or deficits in the way that employees are conducting their business responsibilities.  This is just one way a holistic approach to regulatory compliance proves to be a valuable way in which to operate.  When companies are attempting to organize their practices it is best to look at the entire set of practices at once, instead of the temptation to look at aspects one at a time and without regards to how all aspects affect the whole.

It is best to have one individual, or one group that has the sole responsibility of organizing and conducting risk management tests, rather that to have the managers of each department responsible.  In this way, it remains to be a consistent activity, with consistent rules and governing regulations.  Compliance is not something that is successful when the single elements are tackled.  Larger companies may even appoint one officer in charge of the over-seeing of the compliance.  This also ensures that any involvement without agencies does create inadvertent breaches in the privacy or security of information.

Planning and Organizing in Order to Comply to Regulations of HIPAA is a post from: LostHawk

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