In an article published in the July 29, 2011 issue of the Houston Business Journal entitled “Eight
Steps to a More Effective Anticorruption Compliance Function” Chris Lozier, Principal at UHY
Advisors in Houston and Manager of the FCPA - Foreign Corrupt Practices Act - Anti-
Corruption Compliance Group on LinkedIn, wrote about the gaps that companies are finding in
their compliance programs. To help remedy these gaps Lozier discussed eight key steps he
believes that companies can take immediately to establish a more effective anti-corruption
compliance program. They are as follows:
1. Identify the requirements of anti-corruption laws in all the countries in which your
company does business. This is critical in understanding the key differences in
requirements that your company may be facing. A clear example is the differences in the
FCPA and the UK Bribery Act, which does not have an exempt for facilitation payments
and extends liability to private, commercial bribery.
2. Publish a statement from senior management. This demonstrates a strong company
commitment to a robust compliance program. This statement must leave no doubt that
pursuing “business as usual” will not be tolerated and that employees or business
representatives will no longer be associated with the company. This statement should be
reinforced with strong training for relevant company employees and any third parties
which represent the company.
3. Using the information that you developed in Point 1, update your company compliance
program to a more comprehensive global anti-corruption policies that extend past the
FCPA. If your company is subject to the UK Bribery Act, not only should you revisit the
issue of facilitation payment as discussed in Number 4 below, but remember that here the
US is the foreign jurisdiction and all conditions that your company places on business
outside the US should be included inside the US as well.
4. If your company is outside of the United Kingdom, you should revisit the issue of
facilitation payments. While the FCPA does allow facilitation payments, the UK Bribery
Act does not. Additionally, several respected international organizations such as the
Organization for Economic Development (OECD) have advocated for the end of such
payments. The end of facilitation payments is most likely coming so your company
should be ready for this change,
5. Perform an updated, detailed and defendable anti-corruption risk assessment. This risk
assessment should include such factors as geographic risk, level of interaction your
company has with government officials, industry risk, extent of third party representation
and review the results of any previous audits or assessments to determine their
effectiveness.
6. Identify, categorize and list parties that represent the company and those vendors in the
Supply Chain which provide services involving a foreign governmental official and implement a risk based due diligence program. Your due diligence will be influenced by
this categorization.
7. Provide or update an effective means for anonymous reporting, such as a hotline. With
the implementation of the Dodd-Frank whistleblower provisions, a company must have a
robust internal reporting system. It is therefore in the best interest of your company to
have an effective hotline and response system in place.
8. Perform reviews to assess the effectiveness of your internal compliance program. This
should include testing of your internal controls and the examination of transactions. You
should have, at a minimum a full FCPA compliance audit every two years, but your
company should also perform an annual assessment on selected portions of your
compliance program as well.
While Lozier’s 8 steps are not comprehensive they certainly are a good start and excellent
reference point from which you can assess your company’s program, determine where any gaps
might be and move to remedy those deficiencies.
This publication contains general information only and is based on the experiences and research
of the author. The author is not, by means of this publication, rendering business, legal advice,
or other professional advice or services. This publication is not a substitute for such legal advice
or services, nor should it be used as a basis for any decision or action that may affect your
business. Before making any decision or taking any action that may affect your business, you
should consult a qualified legal advisor. The author, his affiliates, and related entities shall not
be responsible for any loss sustained by any person or entity that relies on this publication. The
Author gives his permission to link, post, distribute, or reference this article for any lawful
purpose, provided attribution is made to the author. The author can be reached at
tfox@tfoxlaw.com.
© Thomas R. Fox, 2011
If you are seeking an Executive Coach for yourself or your organization, consider contacting CB Bowman at Executive Leadership, LLC 908.509.1744 cb@exec-leadershipllc.com; http://www.exec-leadershipllc.com.
CB Bowman, MBA is the president, CEO of Executive Leadership, LLC. She is also the Chairperson and Founder for the Association of Corporate Executive Coaches (http://www.acec-website.org).
Among mid to senior level professionals Executive leadership LLC is the go to company for individuals and companies seeking human capital repositioning, development and/or growth through coaching, counseling, and strategic advice.
With her Fortune 500 business background, laser like precision, and a take no prisoners approach she swiftly narrows in on the issue, and unlike others, she presents financially sound, creative and action oriented solutions with infinite possibilities
