Revelations about the use of Prism for commercial purposes, coupled with enhanced FCPA enforcement, could mean increased scrutiny of non-U.S. companies and individuals’ business practices. While this will help level the playing field for U.S. companies, it will also create new difficulties for practitioners and compliance professionals in other countries, especially in China.

Click to read more...

China recently indicated that it will reform the current registered capital requirements for companies in China. The changes, once made, will significantly simplify foreign investment in China.  The reform plans were announced by Chinese Premier Li Keqiang at an executive meeting of the State Council on 25 October 2013. The goal of the reform is to support a faster pace of economic reform and to encourage investment in China. Highlights of the reform include changing the current paid-up capital regime to a subscribed capital regime, lifting minimum registered capital requirements and relaxing timing requirements for capital contribution. With these changes, China plans to align its company registration system with international practice.

Click to read more...

The entire GSK investigation, led by the Economic Crimes Investigation Bureau under the Ministry of Public Security, could wrap up by the end of this year at the earliest, but that there are still disagreements over whether GSK will be charged for corporate bribery or whether only its executives in China should be charged.  A professor at the People’s Public Security University of China who specialises in economic crimes investigations said recently in Shanghai at a closed-door meeting that the risk of GSK being charged as a legal entity cannot be ruled out, three people who attended the meeting told PaRR. GSK’s management, whether Chinese or foreign nationals, could therefore face charges in the case, the three people said.

Click to read more...

On December 3, 2013, Transparency International released 2013 Corruption Perceptions Index about the perceived levels of public sector corruption in 177 countries/territories around the world. 

Denmark and New Zealand, scored 91, are ranked No. 1 in integrity.  The bottom countries are Afghanistan, North Korea and Somania, which are all scored 8 and ranked at 175.  China and Greece, scored 40, are ranked at 80.  China was ranked at 80 as well in 2012.

Click to read more...

It has been typical under PRC law for bribe takers to be punished more severely than bribe givers. The policy was to punish extortion and incentivize cooperation with government investigations. But as recent investigations into the sales practices of big pharmaceutical companies have shown, this policy may be changing.

Click to read more...

Three international organizations just released the Anti-Corruption Ethics and Compliance Handbook for Business.  The three organizations include the Organisation for Economic Co-operation and Development (OECD), The United Nations Office on Drugs and Crime (UNODC) and the World Bank.  Hereinafter is the self-explanatory message from the OECD, the UNODC and the World Bank.

Click to read more...

If a local manager in China pays bribes and is liable under the law, could his or her supervising executives in the U.S. or Europe also be held criminally responsible? Or should they shrug off the possible liabilities by claiming “the mountain is high, the emperor is far away?”

China law imposes responsibility for crimes committed by business “units” (such as bribery) on a couple of categories of individuals -- “the responsible persons who are directly in charge” (直接负责的主管人员) and “the other persons who are directly responsible” (其他直接责任人员).

Click to read more...

China's antitrust watchdog, the National Development and Reform Commission, has launched an investigation into Qualcomm.  The NDRC is keeping its investigation confidential right now but is examining the company through the lens of the country's anti-monopoly law, Qualcomm said on Monday November 25, 2013. Since details on the investigation are confidential, there's no telling at the moment what the country could be looking at with Qualcomm.

 

Click to read more...