MyComplianceOffice Blog

Franchisors are an example of a type of corporation more susceptible to misconduct risk than others, primarily because of their reliance on international distributors. Franchisors must therefore conduct rigorous internal compliance programs to ensure they are adhering to U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act requirements. Both regulations are international in reach and make it a crime to bribe a foreign official to secure an improper business advantage.  

The U.S. Supreme Court recently held protections in the International Organizations Immunities Act of 1945 against civil lawsuits in U.S. courts were not absolute. Instead, immunity granted to international organizations, including Multilateral Development Banks (MDBs), is no greater than that enjoyed by foreign governments under the Foreign Sovereign Immunities Act (FSIA).  

A 2019 study by Strategy&, the strategy consulting arm of PwC, found for the first time ever, more CEOs were forced out of their organizations for ethical lapses than for poor financial performance or conflicts with their Board.  

Telefônica Brasil recently agreed to pay the U.S. Securities & Exchange Commission (SEC) more than $4 million to settle charges brought against the organization for allegedly violating the Foreign Corrupt Practices Act (FCPA). 

Chances are your organization has developed a conflict of interest (COI) policy. But does it have an effective COI compliance program in place? Can you demonstrate it to regulators? If the answer is no to either of those questions, there are three things you need to do now to satisfy regulators that you take COI prevention seriously.