Don't let U.S. focus crimp oversight abroad: with increased SEC and DOJ scrutiny on U.S. companies' business practices in foreign countries, a myopic focus on U.S. policies and procedures can detract from oversight of FCPA violations.(regulation)(Securities and Exchange Commission)(Department of Justice )(Foreign Corrupt Practices Act )

Financial Executive, January, 2007 by Olsen, William

In the wake of the Sarbanes-Oxley Act of 2002, companies have invested significant time and money to ensure compliance with U.S. laws and regulations. However, these laws and regulations are the Achilles' heel of many U.S. companies with foreign operations. A myopic focus on home office policies and procedures can detract from oversight of overseas operations. In particular, significant risks exist when companies neglect to monitor for violations of the Foreign Corrupt Practices Act (FCPA).

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While the FCPA has been in place since the 1970s, there has been a recent spike in investigations by both the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). This current trend is the result of companies...

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