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:

  • Anti-bribery. It is not acceptable to bribe government or private sector employees. It is illegal to bribe or to be bribed. You must not offer to pay, promise or receive anything that is of value either directly or indirectly because this constitutes as bribery. Accepting a bribe is also not acceptable under any circumstances.
  • Books, records and controls. These are considered an easy way for authorities to record and carry out prosecutions for anti-corruption laws should the need arise. Corruption charges could happen if the company if found guilty of falsifying records. These records include travel and expense reports, mergers and acquisitions reports, and policies and procedure reports.
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