China: ‘Where The Bribes Are’ – WSJ

By now, it’s well known that the energy sector has been hit hardest by FCPA prosecutions in the 34 years since the law was passed. But how hard, exactly, is that?

About $2 billion in penalties, turns out.

China poses a high corruption risk. No secret there. But did you know it also poses the broadest risk of any country?

The investigative firm James Mintz Group has a new database of every FCPA case that it says allows users to access such information in short order by clicking on an interactive map.

Corruption Current’s favorite feature is the filtering by sector. Pick your sector on the bar on the left, and you can see which countries apparently have been the most treacherous for a particular industry — energy, manufacturing, defense, etc. Consulting comes in second, with a total of about $847 million in penalties.

Patrick Kelkar, a partner at the firm who handles FCPA investigations, pointed out that China was the only country in the database — called “Where the Bribes Are” — that cut across every sector that has ever been targeted.

via China: ‘Where The Bribes Are’ – China Real Time Report – WSJ.

TRACE Report Offers Global Anti-Bribery Enforcement Stats | Law.com

Key findings in the report include:

  • The United States has pursued 3.5 foreign bribery enforcement actions for every one by all other countries combined since the year 2000.
  • Top industries for anti-bribery enforcement are in the sector covering oil, gas, and coal, accounting for nearly 20% of all enforcement activity.
  • There’s a near three-way tie for second place, with the aerospace/defense, manufacturing, and health care sectors each accounting for about 12% of enforcement activity.
  • The largest number of enforcement actions involve alleged bribe payments to officials in China, Iraq, and Nigeria.
  • While the U.S. was pursuing actions at a record pace, enforcement by countries other than the U.S. actually fell in 2010.

via TRACE Report Offers Global Anti-Bribery Enforcement Stats.

Ready Or Not, Here Comes the UK Bribery Act

(Business Law Currents) The countdown to the debut of new anti-bribery legislation from the United Kingdom is set to take the world by storm, regardless of whether the corporate executives have fortified risk management policies. Far from being limited to a regional legal matter, the new regulations are expected to raise the bar for corporate anti-corruption standards globally.

In comparison to existing anti-bribery legislation such as the Foreign Corrupt Practices Act, the UK Bribery Act is expected to cast a wider net of potential liability due to its broad extra-territorial reach over any entity with a “demonstrable business presence” in the United Kingdom.

By relegating the offence of failing to prevent bribery as a strict liability offence, the Act eliminates the defense that organizations were unaware of corrupt practices carried out by employees or affiliates. As a result, non-UK companies could find themselves ensnared via agent liability or other indirect means. Moreover, the Act, which imposes a heavy liability burden on senior corporate executives, has been designed specifically to target corruption in the private sector as well as the public sector.

Arriving amidst a global push for more robust anti-bribery controls, the UK Bribery Act joins ongoing legislative efforts around the world to crack down on corruption. In the United States, the SEC recently finalized details on the Dodd-Frank Whistleblower Program, a move intended to assist the Commission with anti-bribery investigations. Within the Asia Pacific region, Hong Kong and Indonesia are in the process of drafting legislation to address anti-money laundering and to criminalize bribery in the private sector, respectively. Moreover, earlier this year, China amended its criminal legislation to criminalize the bribery of foreign officials and officers of international public organizations.

via Ready Or Not, Here Comes the UK Bribery Act.

Mergers and Acquisitions in China: Current Trends and Challenges in the Middle Kingdom

2010 was a very strong year for mergers and acquisitions in the Middle Kingdom. Statistics provided by Thomson Reuters show that over 3000 M&A transactions involving Chinese enterprises with a combined US$131.1 billion were reported in 2010. Among these deals, cross border transactions amounted to US$80.7 billion, a 21.2% increase compared with US$63.6 billion recorded in 2009. In terms of the number of M&A deals, the materials sector saw the most activity with M&A transactions, accounting for 24% of the total, followed by the energy and power sector making up 20%. The financial sector came in third place with 17% of all the deals. These deals were driven by a number of factors including the reorganization of State-owned enterprises, acceleration of the pace of Chinese government’s “zou chu guo men or “going out policy”, and desire of foreign companies to enter into new markets by seeking acquisitions in China,

However, notwithstanding the increase in M&A activity and the growing Chinese economy, China remains a challenging environment for foreign investors. Cultural, regulatory, due diligence and legal obstacles make acquisitions in China risky and difficult. Foreign companies seeking acquisitions in China are usually aware of well-known risks such as questionable business practices, environmental exposure and the lack of intellectual property protection. Unfortunately, they are often unprepared to handle a wide range of cultural, legal and organizational differences presented in China.

Successful acquirors in China are those that commit the required resources and efforts, and use best-practice strategies to minimize the inherent risks. This article identifies the current trends in mergers and acquisitions in China, discusses the key challenges and the common mistakes that are made in connection with acquisitions in the Middle Kingdom.

via Mergers and Acquisitions in China: Current Trends and Challenges in the Middle Kingdom.

10 e-Discovery Trends in the Cloud

Cloud computing is rapidly changing the way enterprises go about their business. Over the past 18 months we have noted a trend amongst enterprises to take their e-Discovery in-house. According to email and archiving security vendor Proofpoint, the economy available through the cloud is going to speed up the process and by the end of this year in-house e-Discovery could well be the norm.

The move in-house will be driven by organizations looking to lower legal expenses while gaining more control over the e-Discovery workflow.

Proofpoint says it also expects cost to be a driving factor in accelerating the adoption of archiving in the cloud over traditional on-premise technologies.

As a provider of SaaS email security, email archiving and data loss prevention solutions, Proofpoint has made it its business to protect email boxes across private and public sector enterprises. Leaving aside its private sector deployments, it has over one million US government and defence inboxes under its care so for its own survival it needs to know.

So where is e-Discovery going for this year? According to Proofpoint and based on its interaction with customers and legal professionals in email archiving and e-Discovery, it has noted ten trends that will unfold as the year progresses:

via 10 e-Discovery Trends in the Cloud.

BBC News – Will the UK Bribery Act help Russia fight corruption?

When the UK Bribery Act, passed by Parliament earlier this year, becomes law next April, many overseas companies could find themselves in serious trouble.

But for governments in countries such as Russia, where fighting corruption on a national level has not been very successful, the new law could prove to be of significant importance.

Apart from criminalising both private sector corruption and the bribery of officials, it defines how British and foreign firms are expected to do business – not only in the UK, but also elsewhere.

“When the Bribery Act comes into force, I shall have jurisdiction in respect of foreign companies – such as Russian companies – that carry on business in the UK and are involved in bribery in any other country in the world, even if that bribery has no connection with their UK business,” Richard Alderman, the director of the Serious Fraud Office, told the BBC.

The same, according to the Act, goes for UK companies doing business internationally.

via BBC News – Will the UK Bribery Act help Russia fight corruption?.

Making ECM meaningful for today’s CIO | Hyland Software’s Document Management Blog

It’s Gartner Symposium week, dubbed the largest gathering of CIOs and senior IT managers.

So far, most of the themes are centered on cloud, context, calculated risk and technology flexibility. But from the keynotes to the presentations, one thing’s been clear: there are new pressures that CIOs are dealing with. And those pressures are significantly changing their roles and how they handle IT.

Case in point – technology flexibility. There are competing issues here. Larger vendors are locking organizations into their stacks through enterprise deals that organizations may or may not need. And, the bulk of these deals isn’t in the software – it’s in the customization through services that comes after the deal. But the business landscape – one that CIOs have to be more in tune with – is in constant motion, meaning that technology has to be ready to move and change when necessary. Obviously, these issues have huge implications when it comes to total cost of ownership.

On that note of TCO, many of the changes for the CIO are on the financial side. Here’s one: Gartner predicted that in a few years, CIOs would be much more responsible for driving business – whether that business is revenue-focused in the private sector or service-focused in the public sector. It’s obvious that you shouldn’t do technology for the sake of technology. But this is tying the CIO to the CFO in a way that’s never been seen before.

Lastly, when it comes to actually making IT purchases, risk has been the hot topic. Perhaps it has something to do with a recent Gartner report, which suggests that before even looking at how much something is going to cost and what the returns will be, CIOs must assess risk. (More to come on this soon with a post from Ken Burns.)

All of these changes are pretty high level. But the impact runs deep, all the way to the specific technologies – including ECM.

via Making ECM meaningful for today’s CIO | Hyland Software’s Document Management Blog.

In Focus: Post-ILTA 2010 | Law.com

Covering technology shows in the legal sector can be pedestrian when compared to the Computer Electronic Association’s CES or UBM TechWeb’s Interop. One thing about legal technology shows, they are well-focused on the profession. If you’re interested in buying or selling technology in the legal space, there are a number of shows with exhibits to attend over the year: LegalTech New York, ABA TECHSHOW, the Association of Corporate Counsel annual meetingi, and the International Legal Technology Association conference. This year there were plenty of new things to see at ILTA’s most recent conference in Las Vegas from August 22-26.

I previously covered some of the news from ILTA when I discussed an overall theme that drove me to this year’s show: new and improved views of data to make more informed decisions. Here are a few of the products I viewed on the exhibit floor….

continued In Focus: Post-ILTA 2010.

The Long Arm Of The Crown: New U.K. Anti-Bribery Law Reaches Private Sector Bribery And Creates Offence Of “Failing To Prevent” Bribery | Sheppard Mullin Richter & Hampton LLP – JDSupra

The U.K. Bribery Act 2010 (the “Act”) represents a fundamental reform of the U.K. anti-bribery regime and greatly expands the potential legal exposure of companies and individuals that do business, including practice of a trade or profession, in the U.K. For example, it criminalizes purely private bribery with no involvement of a government official and creates a new corporate offence of “failing to prevent” bribery. These offences are subject to unlimited fines and a 10-year maximum prison sentence for individuals. The Act bears some similarity to its U.S. counter-part, the Foreign Corrupt Practices Act (“FCPA”), but is in general stricter and broader. Accordingly, companies with business operations in the U.K. must not assume that even robust FCPA compliance programs will assure compliance with the requirements of the Act.

The Act creates offences that cover a variety of situations and, in some instances, appear to create a form of strict liability. The provisions of each section of the Act are discussed briefly below.

Please see full article below for more information.

via The Long Arm Of The Crown: New U.K. Anti-Bribery Law Reaches Private Sector Bribery And Creates Offence Of “Failing To Prevent” Bribery | Sheppard Mullin Richter & Hampton LLP – JDSupra.

U.S. can learn from EU telecom reforms

This winter, the global telecommunications sector is active as never before. On November 24, Europe voted on its new Telecoms Package, a set of Directives that will serve as Europe’s future network policy. The U.S. is revising its own broadband policy at the same time, commissioning Harvard’s Berkman Center for Internet and Society to compile a study on the current global broadband trends. This fortunate conjuncture of regulatory overhauls both provides a clear vista of where we are heading to in terms of telecommunications, and highlights important differences between the U.S. and Europe, offering lessons, examples and alternatives to both sides of the Atlantic.

The EU’s approach is clearly consumer driven, and reasonably so. European countries strove hard to instill competition in the telecommunications sector over the past 20 years, and, having succeeded, they can now shift their attention to enhancing the consumer experience. This did not stop the EU from taking further action to increase competition, facilitating functional separation of national telecoms, requiring more independent national authorities, overseeing national regulatory remedies proposed by national regulators and reallocating spectrum. To achieve uniform application of these rules, the EU will establish a new oversight authority, the Body of European Regulators for Electronic Communications (BEREC).

But the new directives will also gravely change the lives of millions of network users directly. The EU will officially embrace a form of network neutrality: national telecom authorities will set a minimum quality level for all services, while network management allows more demanding types of applications to take up the necessary bandwidth. Customers will also receive  transparency in the form of better information on what services they subscribe to and what they can or cannot do with those communications services. A requirement that obliges all website operators to ask permission before installing almost any kind of cookie on the user’s computer is another step towards consumer protection, but this privacy provision is so strict that has attracted negative criticism. Finally, European consumers will also be able to change their fixed or mobile phone operator in one working day while keeping their old phone number (it currently takes, on average, nine).

[continued]  The Harvard Law Record – U.S. can learn from EU telecom reforms.