Welcome!

News Feed Item

KPMG Report: More Than 50 Percent Of Executives Surveyed Say Companies Have Limited Or No Protocols For Cross Border Investigations

Investigating White Collar Crime across the Globe: Tips, Strategies and Missteps

NEW YORK, Jan. 6, 2014 /PRNewswire/ -- Despite the fact that an inadequate or poorly conducted inquiry can cause a company to run afoul of the law, damage corporate reputations, or unravel a case, more than fifty percent of the executives surveyed in the new KPMG report, Cross Border Investigations – Are You Prepared for the Challenge?, stated they have limited protocols in place and insufficient resources to conduct cross-border investigations. 

This revelation comes at a time when data and employee privacy issues, often triggered by investigations, are dominating the headlines and major corporations are facing increased regulatory scrutiny around anti-bribery and corruption legislation such as the foreign corrupt practices act, anti-money laundering and other compliance matters that often trigger cross border investigations.  

"Conducting cross-border investigations requires careful planning and precise execution, but the reality is many companies don't have adequate procedures in place to deal with these complex investigations," said Phil Ostwalt, U.S. Forensic Network Leader for Investigations, KPMG LLP.  "Couple the absence of planning with legal and cultural differences and you can have one of the biggest challenges facing global corporations."

The KPMG cross border report outlines several, often counterintuitive, tips to help compliance professionals, corporate investigators and board members keep their investigations on track.   Key insights include:

Language is important: In some countries using words such as "investigation," "whistleblower," "informant" or "witness" may elicit unexpected or unwarranted responses that can have a chilling effect on the process.

More generic words such as "review," "analysis" or "discussion" can be used in place of investigation, while words such as "employee" or "colleague" are often more effective than whistleblower or informant.

In some jurisdictions, it can be illegal for companies to investigate alleged employee misconduct because the local government is considered the exclusive investigator.

Don't find yourself on the wrong side of the law: Foreign data privacy laws and regulations often prevent investigators from removing data out of the jurisdiction.   In some Asian countries, many businesses are state owned or controlled, which may trigger states secrets laws and greatly impact the kind of data that can be collected and reviewed.

Crossing the border with data required to conduct the investigation can trigger an investigation of the investigator.

Anticipate lots of sealed lips: Loyalties differ by culture and some employees may be hesitant to speak out against a countryman for the benefit of a foreign company.  Additionally, in some nations it is against cultural norms for employees to say something negative about a person with a senior position in their company.

Cultural differences remain one of the top three challenges in conducting cross-border investigations, which is up from twenty six percent in 2007, to thirty seven percent in 2013.

Don't get lost in translation:  Work with people who understand the local language and cultural nuances.  Investigation teams who do not have local language skills may miss critical aspects of key documents or interviews conducted in local language.

More than a third of the respondents in KPMG's survey stated that language differences present a challenge in cross border investigations.

Top 3 Cross Border Investigation Challenges (Respondents selected up to 3):

  • Privacy or information issues (46 percent)
  • Lack of internal investigation resources (42 percent)
  • Cultural differences (37 percent)
  • The legal or regulatory environment (35 percent)
  • Language differences (32 percent)
  • Lack of robust publicly available information (23 percent)
  • Lack of cooperation from others in their organization (19 percent)
  • Identification and retention of competent external resources (14 percent)
  • Personal security of those involved in investigations (9 percent)
  • Lack of cooperation from government agencies (5 percent)

"The challenges and importance of an effective investigation, particularly in a global setting, are often not fully appreciated," said Richard Girgenti, U.S. Forensic Network Leader, KPMG LLP. "The failure to get it right can only serve to exacerbate the underlying problem."

About the Report
Data for Cross Border Investigations – Are You Prepared for the Challenge? was gathered by KPMG International member firms' forensic specialists in Africa, Asia, Australia, New Zealand, North America and Western Europe and sixty corporate executives responsible for their organization's cross border investigations.

About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 155,000 professionals, including more than 8,600 partners, in 155 countries.

About KPMG International
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 155,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

Contact:
Anayo Afolabi
KPMG LLP
201-307-8135
[email protected]

SOURCE KPMG LLP

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, provided the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” used open source attack tools that are free and available for download by anybody. Attendees learned where to find and how to operate these tools for the purpose of testing their own IT infrastructure. The...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, discussed how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a practic...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...