We are seeing more headlines in the Gulf about fraud cases and the recent high-profile prosecutions in the UAE emphasise the current approach of a zero-tolerance policy towards corruption.
The passing of anti-bribery laws and regulations and renewed efforts by governments to clarify and codify specific regulations in more recent legislations and decrees further highlight national efforts to combat corruption at all levels.
For example, provisions in the UAE Penal Code make acceptance of a bribe by a public official a criminal offence, punishable by imprisonment and fines and the provider of a bribe or the person who facilitates a bribe can also face criminal liability. Several countries in the Gulf, including the UAE, have signed up to the UN Convention against Corruption and companies in Dubai regulated by the DIFC and DFSA too have a handful of regulations and compliance procedures to watch out for.
American and European companies doing business in the region are always concerned with FCPA and OECD Anti-Bribery provisions and the number of investigations carried out by the US Securities and Exchange Commission for alleged violations of FCPA provisions globally has increased from nine in 2003 to more than 90 in 2008.
It is interesting to note that more local companies in the Gulf are beginning to recognise the act's impact and relevance in relation to business transactions, which is making thing easier for everyone.
What is also often misunderstood is that the FCPA applies only to American companies, when in fact the provisions apply to any entity with physical assets or securities registered in the United States.
[continued] Risk management a must today.
