Financial Regulatory Forum

U.S. financial institutions seen lacking anti-corruption policies for domestic politicians

By Brett Wolf

ST. LOUIS/NEW YORK, March 7 (Thomson Reuters Accelus) – Despite an international push for financial institutions to crack down on corruption and money laundering linked to political figures, it remains unclear how firms in the United States and abroad will respond.

Some U.S. financial institutions say they have taken steps to address the specific corruption and money laundering risks associated with American political figures and those close to them. Others say they have not, and to date, regulators’ expectations are unclear.  (more…)

U.S. anti-corruption setbacks seen having little impact on company strategies

By Brett Wolf

NEW YORK, Feb. 23 (Thomson Reuters Accelus) - The U.S. Justice Department has suffered a string of setbacks in its efforts to enforce the Foreign Corrupt Practices Act, including two this week, but it retains sufficient leverage to persuade companies to settle bribery allegations without a legal fight, sources said.

“I think companies should be emboldened, but I doubt they will,” said Mike Koehler, an assistant professor of business law at Butler University. “After all, to challenge the Justice Department and to put it to its burden of proof requires a company to be criminally indicted.” Indictment would not only open up a long legal battle, it would also threaten a company’s reputation.  (more…)

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