Important about Anti-Corruption Due Diligence for Business
April 6, 2017 by Easy Buy Sell Business in Blog

Important about Anti-Corruption Due Diligence for Business

Important about Anti-Corruption Due Diligence for Business

The importance of understanding anti-corruption laws are imperative, especially in today’s challenging and constantly changing business environment. Corruption comes with consequences, some of which can be dire, and that is the last thing you want to be dealing with as a business owner.

Companies which have gone global especially, need to constantly be alert of such practices which could severely jeopardize their business. Corruption could severely affect the company’s reputation.

To avoid falling victim to corruption scandals, companies need to make a commitment to constantly be vigilant and put a stop to these crimes before they happen. Some examples of corruption include:

  • Falsifying records to cover up a bribery


  • Giving gifts to procurement managers or bosses to push decisions in their favour


  • Making unauthorised payments in order to win

Anti-corruption laws are aggressively enforced on a global basis. Investors need to be familiar with the corruptions laws of the country before embarking on a new business venture by doing their due diligence.

There are two main areas of focus for anti-corruption laws:

How to know if your company is at risk of corruption charges

Understanding corruption charges and the red flag warnings that may pop up is a great way to ensure that your company is playing by the rules like it should.

Some common warning red flags include

  • Past misconduct


  • Refusal to sign an anti-corruption certificate


  • Lack of transparency in expenses


  • Offshore payment requests


  • Cash payment requests


  • False statements


  • Hidden financial interests


How to do your due diligence for red flags to avoid corruption charges

Once you suspect a red flag is happening within your business, you will be obligate to report your findings and get legal consultation on the matter. You need to do your due diligence by determining it is in fact a red flag and verify the information you have before you decide how to proceed with it.

Remember, if you don’t have the proper documentation and proof or a valid business reason why something needed to be done, it is best to stay away or not do it at all to avoid corruption charges.