With the fallout from the Panama Papers still widening, 89% of compliance professionals say government sanctions are now the biggest factor prompting relationship reviews – an increase of 12% upon 2015, according to a joint survey by Dow Jones Risk and Compliance and MetricStream.
Six in 10 reported that senior level executives and board members “always” require due diligence, with 66% claiming that M&A targets were also a focus.
However, despite mounting pressure to strengthen anti-corruption measures, just 27% said they monitor their business partners on at least a quarterly basis.
Joel Lange, managing director of Dow Jones Risk and Compliance, said: “This annual survey helps us gauge how a culture of compliance is developing among global corporations. As this culture spreads, we are starting to see reductions in those who have lost business to an unethical competitor. This progress is heartening but there is still much to be done to stamp out corruption. Government sanctions as well as the regular monitoring of business partners is absolutely critical to that.”
There is clear evidence of improvement in the business environment, with just 26% reporting lost business to an unethical competitor. Sixty-five percent reported delaying or stopping work with a business partner due to concerns over anti-corruption regulation violations.
Respondents listed Iran, China, Russia, Iraq and Ukraine as the countries where business endeavors are most likely to be interrupted due to corruption concerns. Over a quarter (27%) said that banning all facilitation payments is unrealistic.