We've often noted that all boards of multinational companies face heightened risks these days associated with the Foreign Corrupt Practices Act, which continues to be a strong focus of the Department of Justice and the SEC. The latest to be ensnared is Goldman Sachs, which is being probed for its dealings with a Libyan sovereign wealth fund.

Last year was a banner year for prosecutors. Across the pond, the United Kingdom has gotten in on the movement, passing the Bribery Act in 2010, which basically criminalizes private sector bribery. Despite the enforcement activity, a recent survey by KPMG has found that many multinationals lack solid compliance programs that can adequately reduce their risks around the world. The top three compliance challenges were: Auditing third parties for compliance, due diligence difficulty on foreign companies, and the diversity of laws and requirements in the many markets in which they do business. Here are some results, which you may find surprising:

• 20 percent of U.S. companies do not have a training program
• 50 percent of U.S. companies do not have a committee tasked with FCPA issues
• 75 percent U.S. companies lack a full-time FCPA compliance officer
• One in three companies do not perform an risk assessments in this area
• Of those that conduct risk assessments, one in three do so less than once a year

Perhaps the biggest areas of concern surrounds dealings with overseas third parties. Yet:

• Only two in five companies that have FCPA policies distribute them to third parties
• Three in five with right to audit clauses in force have never executed their right
• More than half of companies do not receive compliance certifications from overseas agents, distributors, vendors, brokers, JV partners, or suppliers.

For more:
- here's the survey

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