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CCOs must be aware of corruption pitfalls overseas

SVP at Nair & Co. explains how companies can navigate foreign expansion issues

For U.S. companies that plan to expand their operations into other countries, there are many factors to consider. The Foreign Corrupt Practices Act (FCPA) is pervasive in its jurisdiction and is on the minds of multinational corporations. Corruption is an important concern for these businesses. According to Venkat Eswaran, senior vice president at Nair & Co., these companies need compliance programs that are tailored to each country, the type of business and other factors.

For example, in third-world countries, Eswaran says, the government is typically heavily involved in business, which increases the risk of an FCPA violation. This is due to the fact that, when a business is run by the government, the contact person for that business could be considered a government official. This underscores the need for a clear risk-based compliance program that has complete buy in from upper management.

Senior Editor and Community Manager

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Rich Steeves

Richard P. Steeves is Senior Editor and Community Manager of InsideCounsel magazine, where he covers the intellectual property and compliance beats. Rich earned a B.A....

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