CIOs have an important role to play when it comes to helping their organizations avoid prosecution for violating the Foreign Corrupt Practices Act. The Justice Department and the Securities and Exchange Commission Wednesday issued a 130-page document to clarify what critics said were ambiguities in the law that has forced them to abandon business in high-risk countries and spend millions of dollars investigating themselves. The guidance says what to do if a company uncovers evidence of potential bribes while conducting due diligence on a company it recently acquired. The short answer: Stop the bribery, report it to the government and institute reforms at the newly acquired company. The agencies say that an acquiring company that follows such steps is unlikely to face prosecution.
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