Anticorruption Survey Says Russia Tops for Corruption Risk

The most FCPA investigations are happening with regard to conduct in China. Brazil is dominating headlines with its corruption. But the third annual Global Anticorruption Survey by AlixPartners identified Russia and Africa as the top places posing significant corruption risk.

75% of respondents said Russia posed a significant risk of corruption, with Africa coming in second place with 59% identifying a significant corruption risk there. China (53%), Mexico, (42%) Brazil (41%) and India (32%) were all identified as countries where more than 80 percent of respondents thought there was some risk or a significant risk of corruption.

The survey also asked respondents if there were places in the world where it was impossible to do business without encountering corruption. Of those who said yes, the leading country identified was Russia, cited by 62%.

The overview of the survey starts out by noting a sharp rise in enforcement actions under the Foreign Corrupt Practices Act (FCPA), two of the largest settlements ever recorded in 2014, and the collection of more than twice the amount received in 2013.

The survey asked about internal whistleblower programs at the corporations of respondents. Only 68% of respondents could confirm that their company had a whistleblower hotline and only 55% of that segment could confirm that it was open to suppliers and customers. Third party intermediaries are one of the places where the risk of an FCPA violation is the highest.

For the complete summary, click here to reach the AlixPartners website.

Have questions about blowing the whistle on FCPA violations? Review our FCPA Whistleblower Guide and then contact our SEC whistleblower attorneys with your questions by filling out our contact form or calling 1-800-590-4116.

Photo Credit.