Reducing Corruption Risk By Disrupting Moral Hazard

Law360, New York (May 7, 2012, 3:44 PM EDT) -- Anti-corruption practitioners know, perhaps now more than ever, that third-party relationships represent one of the primary areas of risk for potential violations of the global regulatory framework and generate the greatest number of sanctions. A business agent who pays a bribe to a government official in order to incentivize that official to award a contract or take a favorable action for the benefit of the agent's principal is illustrative of this practice evident around the globe.[1]

Because of the predominance of this risk, anti-corruption standard setting bodies have afforded a significant amount of attention to the private "regulation" of third-party behavior....

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