With US law enforcers becoming ever more aggressive in pursuing foreign companies that pay bribes, it would seem the right time for European executives to bulletproof their firms against ethics breaches.

Some European boards are taking steps to avoid investigation and the possible jail terms that result from prosecution under the Foreign and Corrupt Practices Act (FCPA), the US statute outlawing bribery. But many are unaware of the compliance risks that come with doing business in the US, according to those working with companies liable under the act.

In the UK for example, 46 per cent of FTSE 350 companies doing business in the US believe they are not subject to the FCPA, or do not know whether they are subject to it, according to an overseas bribery and corruption survey published in December by KPMG. A foreign company is liable under the FCPA if it has a US listing, headquarters or operations, or uses the country’s banking system.

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