Deloitte Online Poll: Most Respondents Expect FCPA Violations to Increase in Coming...

Deloitte Online Poll: Most Respondents Expect FCPA Violations to Increase in
Coming Years
One-Third of Organizations Still Have No Comprehensive FCPA Compliance Program
in Place

NEW YORK, Sept. 14 /PRNewswire/ -- Although most (72 percent) business
professionals expect an increase in Foreign Corrupt Practices Act (FCPA)
violations in the next two years, one-third (34 percent) of organizations
still have no comprehensive FCPA compliance program in place, according to a
recent Deloitte webcast poll.

When asked the leading reason why some companies might not have a
comprehensive FCPA compliance program, 23 percent cited an unawareness of the
severity and consequences of FCPA violations.

"When it comes to FCPA, corporate ignorance is not bliss," said Ed Rial,
principal, Deloitte Financial Advisory Services LLP and leader of the Foreign
Corrupt Practices Act Consulting practice. "FCPA enforcement activity is
rising dramatically. Recent cases have seen penalties in the hundreds of
millions of dollars -- a twenty-fold increase over prior cases."

Respondents anticipate global corruption violations are most likely to arise
in the foreign subsidiary of a U.S. company (35 percent), the agent/consultant
relationship (28 percent) and in joint ventures or strategic alliance
partnerships (18 percent).

"With the economic downturn, the intensified competition for contracts
increases the likelihood that competitors may resort to bribery to get deals
done. Moreover, with hundreds of billions of dollars tied to stimulus funding,
the risk of corruption and fraud rises exponentially," said Nancy Boswell,
President and CEO of Transparency International-USA. "It is now more important
than ever for foreign governments to close what is perceived as the
enforcement gap with the U.S. and for the private sector to be even more
vigilant."

More than half (59 percent) of respondents expect the increased enforcement
activity to deter FCPA violations in the next two years.

"All industries are under greater scrutiny, including those not previously the
focus of enforcement efforts such as insurance and financial services.
Regardless of the industry or country where a U.S. company or issuer is
conducting business, an organization should have a well-documented and
communicated FCPA compliance program in place, with monitored controls to
prevent and detect potential violations," said Rial.

More than 1,090 business professionals from the financial services; consumer
and industrial products; technology, media and telecom; banking and
securities; energy and resources industries and other industries responded to
the survey questions during the webcast, titled "Global Anticorruption: Risks
and Strategies for Today's Global Enterprise."

About Deloitte
As used in this document, "Deloitte" means Deloitte Financial Advisory
Services LLP and Deloitte Services LP, separate subsidiaries of Deloitte LLP.
Please see www.deloitte.com/us/about for a detailed description of the legal
structure of Deloitte LLP and its subsidiaries.

SOURCE Deloitte

Lauren Mistretta, Public Relations, Deloitte, +1-312-486-4259,
lmistretta@deloitte.com, or Shelley Pfaendler, Vice President, KCSA Strategic
Communications, +1-212-896-1248, spfaendler@kcsa.com