Outsourcing Corruption

By Matthew Richardson

A recent report by KPMG indicates that corrupt activates are migrating away from sanctionable international companies. As more countries begin to police the misconduct of commercial enterprises abroad, there are strong incentives for companies to find partners willing to engage in corrupt activities on their behalf. Particularly given the relative rareness of “right-to-audit clauses” such third-party sheltering can be highly effective.

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