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Cross-borderinvestigationsAreyoupreparedforthechallengekpmg.comKPMGINTERNATIONAL Contents1.Introduction22.Triggeringacross-borderinvestigation33.Triageandprotocolforcross-borderinvestigations5Assesstheleadorallegation7Implementshort-termactionsteps7Developaplan9Determinewhoshouldbenotifed9Identiywhowilloverseeandconducttheinvestigation9Assessspeciallegalorculturalconsiderations102013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. 4.Conductingacross-borderinvestigation12Dataprivacy13Interviewingemployees16Reportingfndings175.Remediationacrossborders186.Concludingremarks202013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. 01IntroductionConductingcross-borderinvestigationsisnosimpleendeavor.Addthecomplexitiesolegalandculturaldierencesandyouhavearguablyoneothebiggestchallengesacingglobalcorporationstoday.Thereareobstaclesateverystepoacross-borderinvestigationincludinginitiallyreceivingaclaimorallegationcomplyingwithoreigndataprivacylawsusingtheappropriatestaandresourcesrespectingdiverseemployeerightsandremediatingacrossborders.Understandingwherethepitallsarealongthewayandhowtonavigatethemcanhelpyouavoidcriticalmissteps.ThegoalothispaperistogiveyoumeaningulguidancebydiscussingwaystoeectivelymeetthesechallengesthroughtheexperiencesoKPMGinvestigationsproessionalsworkingaroundtheworld.Inadditionweaskedsixtyworldwideexecutiveswhoareresponsibleormanagingtheirorganizationscross-borderinvestigationstotellusaboutthechallengesandobstaclestheyregularlyace.Ninety-fvepercentotheseexecutivessaidthattheyexpecttheirneedsorcross-borderinvestigationstoincreaseoratleasttostaythesameoverthenextyear.Wearepleasedtosharemanyotheirotherobservationswithyouaswell.Isincerelyhopeyoufndthispaperaninterestinganduseulresource.PetrusMaraisGlobalForensicChairKPMGForensicPhilOstwaltGlobalInvestigationsNetworkLeaderKPMGintheUS2Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. 02Triggeringacross-borderinvestigationCross-borderinvestigationscanbetriggeredromamultitudeooreigncountriesinavarietyolanguagesthroughdierentreportingchannelsandatanytimearoundtheclock.Itiscriticalthereorewhendesigningintakeprocedurestoreceiveandprocessallegationstouseaglobalmindsetandconsiderculturaldierences.Howacompanyinitiallyreceivesandreactstoanallegationoraudcanbeadefningpointinacross-borderinvestigationsaysAlexPlavsicKPMGintheUK.Uniquechallengesexistwhenaninvestigationoriginatesinaoreignjurisdiction.IpropertranslationsoanallegationarenotmadeorexampleoricertainpeoplearenotnotifedinatimelymanneraboutaclaimtheinvestigationwillberaughtwithproblemsromthebeginningPlavsicexplains.Intodayshyper-connectedworlditisnotonlypossiblebutimperativetohavewellcontrolledandefcientprocessesthatallowbusinesstorespondtoallegationswiththeappropriatelevelocareinsightandpromptness.Therealityismanycompaniesmayreceivecomplaintsespeciallythoseromoutsidetheirhomecountriesanddonothaveaplantodealwiththem.Understandingthewaysinwhichacross-borderinvestigationcanariseandhowtorespondcanensurethatitstartsoutontherighttrack.Themostcommontriggeroacross-borderinvestigationisaleadoranallegationmadebyanemployeeothecompany.SeventysevenpercentotherespondentsinKPMGssurveyindicatedthatinternalreportingtriggeredtheirmostrecentcross-borderinvestigation.Almosthalotheseinternalleadscamethroughwhistleblowerandhotlineprogramsanotablefguregiventhatculturescandierwidelyregardingtheacceptabilityoreportingtheconductoothers.Insomeculturesaseniorpersoncanbecommittingaveryblatantraudbutnooneunderthatpersonwouldeverthinkotellingsomeoneaboutit.OnedoesnotgoagainstsuperiorsinsomeplacessaysMarkLeishmanKPMGinAustralia.Inadditiontoculturaldierencesthelawsandregulationsgoverninghotlinesvarygreatlyromcountrytocountry.DataprivacylawsinEuropeorinstancemayrestricttheuseowhistleblowerhotlinesorevenprohibitthemromacceptinganonymouscalls.SomeEuropeanUnioncountriesrequiregovernmentapprovaloratleastnotifcationbeoreestablishingahotlinewhileothercountriescompelcompaniestoconsultwithemployeesandsometimestogettheirconsentbeorelaunchingahotline.Knowingthelocalcultureandregulationsaboutthetriggersocross-borderinvestigationscanhelpcompaniescustomizereportingchannelstobestftthewaysinwhichoreignemployeesmightreportallegations.WhenaUS-basedconsumerproductscompanyreceivedhotlinereportsinforeignlanguagesthereportswereimmediatelydelegatedtothecountrymanagerinthelocaljurisdictiontoconductaninvestigation.Howeverthecompanydidnothavealanguage-skilledpersonreviewingthereportsbeforetheyweredelegated.AsaresultareportallegingpotentialcorruptioninvolvingacustomsbrokerinGermanywassenttobeinvestigatedbythecountrymanagerwhowastheactualpersonaccusedoftheallegedwrongdoing.Awell-designedintakeprocesswouldhavepreventedthismistake.CaseStudyCross-borderinvestigationsAreyoupreparedorthechallenge32013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Whenaleadoranallegationisreceivedinaoreignlanguageitiscriticaltogetanaccuratetranslationbecauseevenaminormisinterpretationcanleadtoasignicantmisstep.Onlinetranslationwebsitesarenosubstituteoralanguage-skilledpersonwhoknowsyourbusinessandistrainedtoreviewallegations.ForinstancealthoughMandarinisthenationallanguageacrossChinatheproperuseocharacterssentencestructureandormationoclearthoughtsvariesdramaticallyrompersontopersonandisheavilyinfuencedbytheupbringingotheindividualwhichanautomatedwebsitecannotdetect.Itcomesasnosurprisethatlanguagedierencespresentchallengesincross-borderinvestigationsormorethanathirdotherespondentstoKPMGssurvey.Companiesthereoreneedtohavehotlinesthatarestaedwithappropriatelanguage-skilledoperatorsandtoensurethattranslationsareaccurate.BeoreactingonatranslationoareportconsultwithsomeoneinthecountrywhoknowsnotonlythelanguagebutalsolocalsayingscommoneuphemismsanddoublemeaningsocertainwordsadvisesShelleyHayesKPMGinMexico.Thereareotherimportantdierencesbetweentheintakeoallegationsindomesticandcross-borderinvestigations.Somecountriesrequirenoticationtoanemployeewhoisthesubjectoanallegationaswellasnoticationtoemployeerepresentativesorworkcouncilsespeciallyitheemployeesdatawillbereviewed.Condentialitylawsalsomayrestricttowhomacompanycandiscloseanallegationeveninternally.Becausethelaborlawsanddataprivacylawsinmanycountriescanseemcounterintuitivetocommonpracticesitiscriticaltounderstandthemattheinitialintakestageoaninvestigation.InternalauditndingLeadsprovidedbysomeoneemployeeinsidethecompanyotherthanwhistleblowerprogramLeadsprovidedbysomeoneoutsidethecompanyotherthanaregulatorybodyorlawenforcementNoticationbyregulatoryauthorityorlawenforcementRedagsorndingsarisingfromcomplianceduediligenceWhistleblowerprogramWhichofthefollowinghasbeentheprimarytriggerofmostofyourcompanysrecentcross-borderinvestigations327114523SourceCross-borderinvestigationsAreyoupreparedforthechallengeKPMGInternational2013.4Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Aroundtheglobeemployeeshavebecomeempoweredtoraiseconcernsthroughavarietyoreportingchannels.Forthisreasonacompanyneedstobepreparedtoactquicklyefcientlyandeectivelywhenrespondingtoallegations.GiventhevelocitywithwhichcompliancehappensmanagementcanneverbepreparedenoughwhenitcomestoitsinvestigationprotocolsandproceduresnotedTimothyHedleyKPMGintheUS.Manycompanieshoweverareunderpreparedtomeetthischallenge.MorethanhalothosewhorespondedtoKPMGssurveysaidthattheircompanieshavelimitedornoprotocolsorcross-borderinvestigations.Acompanysintakeprocessesanditsinvestigationprotocolscanbeseenastwosidesothesamecoin.Theimperativeoencouragingemployeesaroundtheworldtocomeorwardwithlegalcomplianceandethicsquestionscannotberealizedunlessacompanyalsohasappropriateinvestigativeprotocols03Triageandprotocolorcross-borderinvestigationsandeectiveresponseswhenissuesareraisedsaysRichardGirgentiKPMGintheUS.Reportingmechanismswillquicklylosecredibilityamonginternationalemployeesitheirconcernsaredisregardedorarehandledpoorly.Forthisreasoncomplianceofcersin-housecounselhumanresourcesproessionalsandothermembersomanagementwhoworkormultinationalcompaniesneedtobepreparedtorespondtoallegationsinaplannedandconsistentmanner.Thismeansthatacompanyshouldproactivelydevelopcasemanagementandinvestigativeproceduresthatalignwiththecompanysvaluesstandardsandprinciplesandtakeintoaccountregion-specifcorcountry-specifcrequirementscustomsandpractices.Otentimesonesizedoesnotftallandprocedureswillneedtobecustomizedtomeettherequirementsoaparticularjurisdiction.Creatingregionalcasemanagementtemplatesthathighlightkeyproceduraldistinctionsprovidesagoodstartingpoint.AswithmostcomplianceinitiativesthedevelopmentocasemanagementandinvestigativepoliciesandproceduresshouldbeacollaborativeexercisebetweencomplianceleadersatheadquartersandtheircolleaguesaroundtheworldsaysMauriceL.CrescenziJr.KPMGintheUS.Whilemanyotheessentialproceduresoaneectivedomesticinvestigationandacross-borderinvestigationarethesametherearecertainundamentaldierencesthatcasemanagersandinvestigatorsneedtobearinmind.Thesedierencesincludethetimeramewithinwhichaninvestigationmustoccurdataprivacyandthetranseroinormationnotifcationstoemployeesortheirrepresentativesnotifcationstogovernmentalagenciesorlawenorcementanddeadlinesorreportingdisciplinarymeasurestakenbythecompany.Suchundamentaldierencescanvarywidelydependingonthejurisdictionwheretheinvestigationtakesplace.ThereshouldbeaundamentaldierencebetweenthemindsetoacasemanagerorinvestigatorconductinganinvestigationonoreignsoilsaysPhilOstwaltKPMGintheUS.Inacttherearemanydierences.Forinstancecasemanagersneedtorememberthatemploymentlawmaydiersignifcantlyromcountrytocountry.Additionallycasemanagersandinvestigatorsneedtobeadaptabletotheinvestigativeproceduresandstrategiesthatcanleadtosuccessatthelocallevel.Giventhesejurisdictionalandculturaldierencescertaintacticsconsideredeectiveinaparticularcountrymayprovecounterproductiveincertainoreignsettings.Cross-borderinvestigationsAreyoupreparedorthechallenge52013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Justasculturalandlanguagesensitivitiesmatterineveryotherormocross-borderinteractionstheyalsomatterininvestigations.Whilethissortocross-borderandcross-culturalsensitivityshouldbeappliedacrossallgeographiesitisparticularlyrelevantincertaincountrieswithahistoryogovernmentalsuppression.Accordinglywhenconductinginvestigationsinoreignjurisdictionscasemanagersandinvestigatorsshouldbemindulothewordstheychoosewhendealingwithoreignemployees.Forexamplethewordinvestigationmayelicitnegativeemotionsorconnoteamessagethatwillhaveachillingeectontheprocess.Reviewanalysisordiscussionaremoreimpartial.Likewiseratherthansayingwhistleblowerinormantorwitnesstermsuchasemployeeorcolleagueareneutral.Howimportantarethefollowingtotheexecutionofasuccessfulcross-borderinvestigationNoteChartshowsaveragescoreforeachsuccessfactor.4.33.83.43.84.34.0534201MostimportantLeastimportantEffectivecommunicationsthroughoutthecourseoftheinvestigationEffectivelyutilizinginternalresourcesincludingpeopleandtechnologytoolsHiringtherightexternalresourcesManagingexpectationsofseniormanagementProperplanningandidentifyingthescopeHavingadetailedinvestigationplanAsoftwarecompanyinitiatedaninternalinvestigationofitsRussiansubsidiary.TheinvestigatorscompliedwithRussiasstrictlimitationsonremovingdatafromthecountryandsentateamtoMoscowtoreviewallofthedocuments.AsiscommonintheU.S.theyencryptedthedatanotrealizingthatitisillegalinRussiatoencryptcertaininformation.Whentheauthoritieslearnedaboutittheinvestigationwasdelayeduntilthesituationcouldberesolved.Knowingthelocaldatalawscouldhavepreventedtheissue.Inadditiontoculturaldierencestherearesignifcantlegaldierences.Manycountrieshaverestrictivedataprivacyandlaborlawsthatcansignifcantlyimpactthescopeanddepthoaninvestigation.Incertaincountriesorinstancelocallawmayrequirethatinternalinvestigationsbedisclosedtothegovernmentparticularlyithecompanyisownedorcontrolledinanypartbyagovernmentagency.Failingtomodiyinvestigatorypracticeswhenconductingcross-borderinvestigationsnotonlycouldbecounterproductiveromaculturalstandpointitalsocouldcarryaconsequenceoraninvestigatoronethatservesasanironicbook-endtowhatisotentheocusotheinvestigationinthefrstplaceaviolationolaw.SourceCross-borderinvestigationsAreyoupreparedforthechallengeKPMGInternational2013.CaseStudy6Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Theollowingstepscanassistcasemanagersandinvestigatorsinhandlingcross-borderinvestigations.AssesstheleadorallegationWhenallegationsinvolvinginternationalmattersaremadethefrststepintheresponseprotocolinvolvesapreliminaryassessmentotheclaim.WelearnedaschildrentostoplookandlistenbeorecrossingthestreetandthesameprudenceshouldbeappliedbeoretakinganyactionwithregardtoanallegationomisconductnotesDanFriedmanKPMGinSouthArica.Takingthetimetoassessthematteriscriticallyimportantorthesakeoconfdentialityandprivacyaswellasthecredibilityothecomplianceprogramtheintegrityotheinvestigationprogressandthereputationothoseinvolved.Whenassessingcross-borderallegationsthecomplianceofcerleadinvestigatororcasemanagershouldtaketheollowingstepsUnderstandthefactualnatureandsubstantiveissuesinvolvedintheallegationPinpointtotheextentpossiblethegeographicsourceotheallegationIdentifythelawsandpoliciesthatmayberelevantDeterminethepervasivenessofthepotentialwrongdoingEvaluatethecredibilityoftheallegationIdentifycountry-speciclawsandculturalnormsthatmayaecttheinvestigativeprocessDeterminewhetheradditionalsubject-matterorlocalproessionalsareneededDevelopapreliminarytimetableandbudgettoadministerandcompletetheinvestigationDeterminewhetherandhowtocommunicatewiththeclaimantandAssembleaninvestigationteaminvolvinglocalteammemberswhohaveculturalandlanguageexpertise.Implementshort-termactionstepsJustaswithdomesticallegationscross-bordermattersrunthegamutincludingemployeerelationsconcernscorruptiondataprivacybreachesthetworkplaceviolenceandsoon.Casemanagershandlingcross-borderissuesneedtotakecertainpreliminarystepstohelpprotecttheintegrityotheprocessemployeesaetyprivacyandconfdentialitycompanypropertyandpotentialevidence.Dependingonlocallawsuchstepscouldinvolvetemporarilysuspendingorplacingonleaveemployeeswhoarethesubjectotheconcernortakingmeasurestopreserveevidenceandrelevantdocumentation.Somecountriesalsorequirenotifcationtoanemployeewhoisthesubjectoanallegationortoanemployeerepresentativeorworkcouncil.Whichofthefollowingbestdescribesthenatureofthecross-borderinvestigationsyouareperformingormanagingBriberyandcorruptionFCPAEmbezzlementormisappropriationConictofinterestFraudulentnancialreportingDatabreachIndustry-specicregulatoryissue67656326117SourceCross-borderinvestigationsAreyoupreparedforthechallengeKPMGInternational2013.Cross-borderinvestigationsAreyoupreparedorthechallenge72013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. 8Cross-borderinvestigationsAreyoupreparedforthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. DevelopaplanAlleectiveinvestigationswhetherdomesticororeigncontaincertaincommonelements.Beoreaninvestigationislaunchedcasemanagersshoulddevelopaplanthatcontainsthesestepsoutlinedabove.Athoroughandwell-designedplancanhelpinvestigationteammembersstayocusedontheobjectivesotheinvestigationmeasureprogressalongthewayandstrategicallyincorporatesupplementalstepsastheybecomenecessary.Aninvestigationplantypicallycentersonahypothesisthatpositswhyandhowthemisconductoccurred.Theplanshouldestablishthescopeandobjectivesortheinvestigationthedocumentsanddatatobecollectedtheindividualstobeinterviewedthetimelineandmilestonesandthereportingprocess.Inacross-bordercontexttheinvestigativeteamalsoneedstotakeintoaccountanyjurisdictionaldierencesthatmayimpacttheinvestigationtheinormationthatcanbecollectedandtheindividualswhocanbeinterviewed.ForinstanceincertainEuropeancountriesduetopersonaldataprotectionlawsthescopeoaninvestigationinvolvingananonymouswhistle-blowermayberestricted.InChinamanybusinessesarestate-ownedorcontrolledwhichmaytriggerChinasstatessecretslawsandgreatlyimpactthekindodatathatcanbecollectedandreviewed.Awellthoughtoutplanshouldpredictthekindsoissuesthatmayariseandlayoutastrategytoaddressthem.DeterminewhoshouldbenotifedAnimportantearlystepinthecase-managementocross-borderinvestigationsistoalertkeymembersomanagementthatapotentiallysignifcantcomplianceallegationhasbeenfledandthataninvestigationwillbeinitiated.Dependingonthenatureothematteritmaybeappropriatetonotiythecountrymanagertheunctionalleaderthedepartmentheadorothermembersolocalmanagement.Itisimportanttokeepthecircleotrustsmallandtoremindmembersomanagementaboutconfdentialityandtheintegrityotheprocess.WehaveseeninstanceswhereamemberothelocalcountrymanagementisnotifedthataninvestigationisabouttobelaunchedandthenthatpersonturnsaroundandsharesthenewswiththesubjectreportsRachaelLayburnKPMGinChina.Suchsharingoinormationmaybeseenasviolatingbasicinvestigatorypracticesbutinsomecountriesitmaybecommonpractice.Knowinglocalcustomsandpracticescanhelpavoidanunintendeddisclosure.IdentiywhowilloverseeandconducttheinvestigationAllegationsvaryinsubstanceseverityandpriority.Thereoreacompanyshouldhaveadetailedprocedureorprotocolthatoutlineswhichdepartmentorindividualswillbearresponsibilityoroverseeingtheinvestigation.ItisvitaltohaveallthecriticalstakeholdersatthetableearlytoagreetotheworkplanandtosetcommunicationprotocolsattheverybeginningadvisesPamParizekKPMGintheUS.Whenaninvestigationisbeingconductedoverseasindierenttimezonesitcreateschallengestokeepingthesestakeholdersinormedinatimelymanner.Theprotocolsthereoreneedtoincludenotonlytheplannedinvestigativeproceduresbutalsothechannelsocommunicationswiththoseoverseeingtheinvestigation.Whilethelegaldepartmentwouldlikelyoverseeinvestigationsinvolvingpotentiallegalmattershumanresourcesmayoverseeinvestigationsrelatedtoemployee-relationsissuesthetandphysicalsecurity.Moreoverpotentiallysignifcantcompliancesituationsincludingthosethatinvolveseriousviolationsodomesticororeignlawraudulentfnancialreportingorseniormanagementwouldrequiredirectboardorauditcommitteeoversight.Theseoversightgroupsshouldhelpestablishthescopeotheinvestigationreviewtheinvestigationplanandensurethatadequateresourcesareavailable.Theoversightgroupplaysanimportantrolewithregardtotherameworkoacross-borderinvestigationnotesMauriceL.CrescenziJr.KPMGintheUS.Itiscriticallyimportantthatthosewhooverseeandmanagetheinvestigationbecomeintimatelyamiliarwiththelocalbusinessanditsoperationswhileatthesametimeunderstandingthelegalandculturalenvironment.Insomeinstanceshiringlocaloutsidecounseltohandletheinvestigationisappropriate.Howevertheoutsidelawfrmshouldbeanindependentfrmandnotthecompanysregularcounselinthejurisdiction.Manycompaniesstrugglewiththeuniquechallengesostafngacross-borderinvestigation.MorethanortypercentorespondentsinKPMGssurveybelievethattheircompanieslacksufcientresourcestohandlecross-borderinvestigations.Individualsneednotonlytobeexperiencedininvestigativestrategyandtacticsbuttheyalsomustunderstandlocallawlanguageandcustoms.Investigationteamswhodonothavelocallanguageskillsmaymisscriticalaspectsokeydocumentsorinterviewsconductedinlocallanguage.IcantstressenoughtheimportanceohavingmembersotheinvestigationsteamwhounderstandlocalcultureandlocallanguagesaysCrescenzi.Yousimplycannotconductacross-borderinvestigationusingpeoplewhodonotknowtheintricaciesandidiosyncrasiesocertainjurisdictions.Theseindividualsmaybehardtocomebyandcompaniesneedtobepreparedbeoreaneedarises.Cross-borderinvestigationsAreyoupreparedorthechallenge92013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Tobewellpreparedcompanieswithglobaloperationsshouldproactivelytrainemployeesaboutinvestigationprotocolsindierentjurisdictionssothattheycanrespondquickly.Tryingtoeducatelocalresourcesateranallegationhasbeenreceivedmayleadtodelaysthatcansidetrackaninvestigation.Yetonlythirty-fvepercentorespondentsinKPMGssurveysaidthattheircompaniesconductinvestigationstrainingeachyear.Unlikedomesticinvestigationscross-borderinvestigationsotentimesrequirespecializedstafngthatnecessitatesproactiveplanning.Companiescanaddressgapsinresourcesbydevelopingcontingencyplansorinvestigativepersonnelsuchasdesignatingexperiencedinternalpeopleromotherregionstorespondinecessaryandretainingoutsidelocalinvestigatorstobeoncallwhenasituationarises.AssessspeciallegalorculturalconsiderationsBothdomesticandinternationalinvestigationsalmostalwaysinvolvedatacollectioninterviewsandothersensitivecommunications.Forthisreasonattorney-clientprivilegeandtheattorneyworkproductdoctrineareimportantconsiderations.Attorney-clientprivilegeprotectsconfdentialinormationdisclosedtoanattorneyintheprocessoobtaininglegaladviceorassistance.Incontrasttheattorneyworkproductdoctrinewhichisbroaderappliestotangiblematerialoritsintangibleequivalentcollectedorpreparedinanticipatingolitigationoratrialwhichextendstotheinvestigativeprocess.Beoreacompanylaunchesaninvestigationitshouldconsultwithin-houseorexternalcounselamiliarwiththelawotherelevantjurisdictionastowhethertheinvestigationcanbeprivilegedorprotected.Inaninternationalsettinglocallawalsomaylimitthescopeotheinvestigation.ForinstanceinEuropeaninvestigationintoananonymouscomplaintcannotbeasbroadasaninvestigationinwhichtheallegationismadebyanidentifedemployee.Whereverpossiblecasemanagersandinvestigatorsthroughtheirsecureandconfdentialinternalcase-managementsystemsshouldattempttohaveananonymousclaimantidentiyhimselorhersel.Insomejurisdictionsitcanbeillegalorcompaniestoinvestigateallegedemployeemisconductbecausethelocalgovernmentconsidersitseltobetheexclusiveinvestigatorresponsibleorlawenorcement.Hereagainsemanticsmatter.Imanagementreerstotheactivityasareviewratherthananinvestigationitcouldmakealegaldierence.Lastlycasemanagersandinvestigatorsshouldbesurethatthescopeotheirinvestigativeplanincludesareviewowhetherthesubjectviolatedlocallaw.Whileitisnotuncommonormanycompaniestopredicatetheirglobalstandardsandcompliancepoliciesontheirdomesticlawscross-borderinvestigatorsshouldalsoevaluatewhetherlocallawtoohasbeenviolated.Manytimestheselawsarenotinalignment.AmidallegationsoemployeeraudataninternationaljointventureinTaiwanaglobalconsumerproductscompanyrealizedthatitdidnothavetheresourcestorespondimmediately.Thematterwasexceedinglysensitivebecauseothestatureothesubjectandamily-ownershipothejointventure.ForassistancethecompanyretainedafrmthathadamiliaritywiththelocalbusinessenvironmentandcultureandhadexperiencewithTaiwaneselawenorcement.Theinvestigationwasconductedinwaythatrespectedthesensitivitiesandresultedinacriminalprosecution.CaseStudy10Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Cross-borderinvestigationsAreyoupreparedforthechallenge112013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. Certainlocallawsthatprovidearighttoaccesspublicinormationcouldresultinathirdpartysobtainingacopyoyourconfdentialreport.TheoperatoroanItalianrailwaywhichwaspartiallyownedbyItalysMinistryoEconomyandFinancewasrequiredtoreportthefndingsoanaccountinginvestigationtotheMinistryanditsdesignees.Thereportharshlycriticizedthechieaccountantcausinghimtolosehisjob.Becausethereporthadbeendisseminatedtoothershecouldnotfndemploymentintheindustry.Hebroughtalawsuitordeamationagainstthecompany.Ithecompanyhadrealizedthatthereportmightnotremainconfdentialitmighthavebeenwritteninamannerthatwouldnothaveexposedittoapotentialclaim.Themannerthatinvestigativeproceduresareimplementedandthelegalrameworkinwhichtheyaregovernedcandierdramaticallyromcountrytocountry.Companiesinvolvedincross-borderinvestigationsareacedwithnavigatingavarietyooreignlawsandregulationsthatinmanyrespectschangethewayaninvestigationcanbeconducted.LocallegislationmaysignicantlyinfuencethemannerinwhichinvestigationsareplannedandexecutednotesJimmyHelmKPMGintheCzechRepublic.Forexampleincertainjurisdictionsthemereobservationoconductsuchastheweighingprocessatweighbridgesortruckscalesmayberegardedasaninringementoprivacy.MoreinvasiveproceduressuchasreviewinganindividualsemailsorconrontationalinterviewsmaybegreatlylimitedHelmsays.Culturaldierencesalsounderliecross-borderinvestigationsandcancreatesignicantproblemsiinvestigatorsdonotunderstandandrespectthesedierences.Incross-borderinvestigationsitisimportanttounderstandthetraditionalculturethatisdrivinghowpeoplethinkactandreactandhowthepersonconductingtheinvestigationisbeingperceivedsaysShelleyHayesKPMGinMexico.Whatmaybeacceptabletosayordoinoneculturemaytotallyoendsomeoneromanotherculture.LoyaltiesalsodierbycultureandsomeemployeesmaybehesitanttospeakoutagainstacountrymanorthebenetoaoreigncompanyexplainsMarkLeishmanKPMGinAustralia.ItcomesasnosurprisethatmorethanathirdotherespondentsinKPMGssurveyidentiedculturaldierencesamongtheirtopchallengesincross-borderinvestigations.Proactivelyidentiyingandaddressinglegalandculturaldierencesisthekeytoconductinganeectivecross-borderinvestigation.Inourexperiencesignicantdierencesbetweencross-borderinvestigationsanddomesticinvestigationsincludedataprivacylawsandregulationsinterviewingemployeesandreportingndings.04Conductingacross-borderinvestigationCaseStudy12Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. DataprivacyPreservingandcollectinginormationrelevanttoaninvestigationisoneothemostimportantstepsintheinvestigativeprocess.Foreigndataprivacylawsandregulationsposesomeothegreatestchallengestoconductingcross-borderinvestigationsbecauseorestrictionsonthekindsodatathatcanbecollectedandtranserredoutothejurisdiction.Manycountrieshaveenactedlawsthatplaceahighpriorityonprotectingpersonaldataincludingestablishingaundamentallegalrightontheprivacyopersonaldataevenisuchdataarecontainedonanemployerssystemorcomputer.InactoverortysixpercentotherespondentsinKPMGssurveyreportedthattheirgreatestchallengeinconductingcross-borderinvestigationsishandlingdataprivacyissues.Beingsensitivetodataprivacyandregulationsinindividualcountriesisaactolieincross-borderinvestigationssaysRoccodeGrasseKPMGintheUS.YoucannotorexampleconductaninvestigationintheEuropeanUnionorespeciallyinChinawithoutfrstunderstandingwhatlegallimitsareplacedoncollectingandexportingdata.Failingtoanticipatetheimpactolocaldataprotectionlawsnotonlycansignifcantlyimpedeaninvestigationbutitalsocanbecostlyintermsoaddedexpensessanctionsandinsomecasesprosecution.ForexampleChinahasstrictlawsthatprohibitthecollectionreviewandtranserostatesecretsandotherinormationthatisinChinasnationalinterest.HoweverChinaslawsdonotdefnewhatarestatesecretsornationalinterests.BecauseChinaishighlycontrolledandmanagedbytheStatemostcompaniesoperatewithanabundanceocautionbykeepingasmuchinormationwithinChinasbordersandbyhiringlocalexpertswhoareintimatelyamiliarwiththerisksoviolatingChinaslaws.Thedataprivacylawsosomecountriesmayprohibitacompanyromreviewingcertaindatainacompanysownflesunlessthedataoriginallywasobtainedorinvestigatorypurposeswhichmanytimesisnotthecase.Oneothebiggesthurdlesiscomplyingwithlimitationsoncollectingandreviewingdatainacompanysreadily-accessibleflessuchasemailsonthecompanysserverinternetuserecordsdocumentsonanemployeesharddriveandevenhardcopydocumentsinanemployeesofce.Thisisaormidablechallenge.IndeedtherespondentsinKPMGsstudybelievethatthemostdifculttaskincross-borderinvestigationsisgatheringrelevantinormationespeciallyelectronicdata.Whichofthefollowingarethetop3challengesyourcompanyfacesinthecourseofconductingcross-borderinvestigationsselectupto3NoteChartshowsthenumberofparticipantswhochosethespeciedchallengeasapercentageoftotalparticipantswhoresponded.Lackofrobustpubliclyavailableinformationtosupplementinvestigativendings1942LackofinternalinvestigationresourcesLackofcooperationfromothersinyourorganization1437CulturaldifferencesIdenticationandretentionofcompetentexternalresources935ThelegalorregulatoryenvironmentPersonalsecurityofpersonsinvolvedininvestigationsLackofcooperationfromgovernmentagencies2346Privacyorinformationissues532LanguagedifferencesSourceCross-borderinvestigationsAreyoupreparedforthechallengeKPMGInternational2013.Cross-borderinvestigationsAreyoupreparedorthechallenge132013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Unlikeacommonpresumptioninsomecountriesthatacompanyhastherighttosearchdataoncompany-ownedsystemsandcomputerstheprevailingviewinmanyoreigncountriesisthatpersonaldataisprotectedregardlessowhereitisstored.MostjurisdictionsinCentralandEasternEuroperequiretheapprovalothepersonbeoretheiremailaccountsmaybeextractedandinterrogatedaspartoaninvestigationsaysJimmyHelmKPMGintheCzechRepublic.ThemodelormanyoreigndataprotectionlawsisEuropeanUnionDirective9546ECtheprimarylegislationtodateondataprotectioninEurope.TheEUDirectivebroadlydefnespersonaldataasanyinormationrelatingtoanidentifedoridentifablenaturalperson.Itrestrictsthecollectionandprocessingopersonaldatatolimitedcircumstancessuchaswhentheindividualhasconsentedwhenitisnecessarytocomplywithalegalobligationorwhenalegitimatecorporateinterestisnotoverriddenbytheundamentalrightsandreedomsotheindividual.Thesesituationsarenotalwaysclearandoreignregulatorsmayhavevaryingopinionsastotheirapplicability.AUScompanyinitiatedaninvestigationocertainoitsoverseasoperationsinEurope.Thecompanyhadaglobalpolicythatitcouldreviewemailsthatwerecontainedoncompany-ownedcomputersandsystems.Inaccordancewithitspolicythecompanycopiedtheemailsoanumberooreignemployees.Howeverwheninvestigatorstriedtoleavethecountrywiththecopiesotheemailsthedatawasconfscatedbyacustomsofcialuntilthecompanycouldprovideconsentsromeachemployee.Thisledtosignifcantdelaysbecausesomeotheemployeesinitiallyreusedtoconsentwhileotherscouldnotbelocated.Creatingexportchannelsbeorehandsuchasgettingconsentscouldhavepreventedthesituation.CaseStudy14Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Cross-borderinvestigationsAreyoupreparedorthechallenge152013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated.Obtainingrelevantdatahoweverisonlythefrststep.OnehastounderstandwhethertherearerestrictionsontakingdataoutothelocalcountryexplainsRoyWaligoraKPMGinSouthArica.ManyoreigndataprivacylawsincludingthoseinEuropeandpartsoLatinAmericaandAsiaprohibittranserringdataoutothelocaljurisdictionwithoutfrstestablishingdataexportchannels.Dataexportchannelsaremethodsoensuringthatcountry-specifcdataprotectionprocedureswillbeollowedsuchasadoptingcorporatepoliciesthatadheretooreigndataprotectionlawsincorporatingmodelcontractclausesthatprovideasaeharborunderlawsliketheEUDirectiveandinsomecasesobtainingconsentsbyemployees.Itisvitallyimportanttoestablishthesedataexportchannelsbeforeaninvestigationarisestopreventdelaysorroadblocksinacross-borderinvestigation.Anotherimportantdierencebetweendomesticandoreigndataprivacylawsrelatestotheconfdentialityoinvestigationmaterials.Manycountriesrequirethatinvestigatorsdisclosepersonaldataincludedininvestigationmaterialstotheindividualswhoaretargetsotheinvestigationitheyrequestthedata.Additionallylaborlawsinsomecountriesmayrequirecompaniestodiscloseinvestigatoryproceduresinvolvingdataprocessingsystemstolaborunionsoremployeerightsworkcouncilsipersonaldatacouldbeimpacted.BalancingtheintegrityotheinvestigativeprocesswiththelegalrightsthatoverseassubjectsenjoyunderlocallawisbothanartandasciencesaysTimHedleyKPMGsGlobalLeaderorFraudRiskManagement.Onewaytostrikethisbalanceistowaitoranappropriatetimeintheinvestigativeprocesstosharethisinormationoncetheinvestigationismatureandthefndingshavebeguntotakeshape.Importantdierencesindataprivacylawscanhaveanimpactatertheconclusionoacross-borderinvestigation.Somecountriesprohibitoutdatedpersonalinormationrombeingretainedeveniitiscontainedininvestigatorymaterials.ThisrunscountertocertainlawsandregulationsthatmayrequireaUScompanytomaintaininvestigatorymaterialsandworkproductoraperiodotime.Havingasolidunderstandingothedataprivacylawsinthejurisdictioniscriticalromthebeginningthroughtheendoacross-borderinvestigation.Inmostcasesthismeansrelyingonexpertswhohavein-countryexperiencewithhandlingdatasaysKenKochKPMGintheUS. InterviewingemployeesInterviewingemployeeswhoarelocatedinaoreigncountryraisesuniquelegalandculturalissuesthatotentimesareraughtwithpitalls.Inmanycountriesemployeeshavetherighttoreusetocooperatewithanemployer-ledinvestigationevenitheyarenotitstarget.ForexampleinsomejurisdictionsincludingEuroperulesprohibitemployersromrequiringtheiremployeestoreportincriminatoryinormationaboutco-workers.Laborlawsinmanycountriesmandatethatanemployeerepresentativeorunioncommitteebeconsultedbeoreanemployermayinterviewitsownemployeesinaninvestigation.Oneothestarkestdierencesbetweendomesticandcross-borderinvestigationsistherequirementthatcompaniesinsomecountrieshavetoinormtheiremployeesoproceduralrightsduringtheinvestigationandgivethematleastsomedegreeoaccesstoinvestigationmaterialsthatidentiythem.Employeesalsomayhavetherighttohavealawyeroremployeerepresentativepresentattheinterview.Understandinglocalcultureplaysapivotalrolewithinterviewingemployeesincross-borderinvestigations.InsomeculturestalkingaboutraudthetandmanipulationofnancialstatementsisacceptedinothersthesamewordswillputpeopleonedgeobservesShelleyHayesKPMGinMexico.Evenbodylanguagemaydier.LookingsomeoneintheeyeisconsideredrudeinsomecountriessoitshouldnotbetakenasacluethatapersonislyingiheorshedoesnotmaintaineyecontactwithaninvestigatornotesMarkLeishmanKPMGinAustralia.Conductinganinterviewinaconrontationalmannermaybeeectivebutinmanycountriestheinterviewingstyleneedstobesotened.Thesekindsoinsightsarerelevanttocross-borderinvestigationsandinvestigatorsshouldbemindulowhatitwilltaketoputawitnessateaseduringaninterview.DuringaninternalinvestigationinaEuropeanUnionmemberstatethecompanysemployeerightscouncilintervenedonbehaloanemployeeinpartbecausethecompanyhadnotnotifedthecouncilthatitwasgoingtocollecttheemployeesdata.Thecouncilclaimedthatthedataincludedpersonaldataanditthreatenedtogetacourtordertohalttheinvestigation.Theresultingpublicitycouldhavethreatenedtheconfdentialityotheinvestigation.Thecompanyultimatelyagreedtosegregateanypersonalinormationanddiscloseittotheemployeeandtothecouncilbeoreincludingitinanyinvestigationmaterials.Thisincreasedthecostsotheinvestigationandcauseddelays.Workingwiththecouncilproactivelycouldhaveavoidedthedelays.CaseStudy16Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Languagedierencescanposeproblemsateverystageincross-borderinvestigationsandtheymaybemostacutewheninterviewingwitnesses.Unlikedocumentsthatarewritteninaoreignlanguagewitnessesotentimesspeakwithdierentdialectsoruseslangorlocaljargon.Somespokenwordsandtermsalsodonottranslateinexactlythesamewaybetweenlanguages.Itisnowonderthatlanguagedierenceswererankedasatopchallengeincross-borderinvestigationsbynearlyathirdotherespondentsinKPMGssurvey.Usinginvestigatorswithlocallanguageskillsparticularlythosehavingtheappropriateregionaldialectscanbeessentialwheninterviewingwitnesses.WhendierentlanguagesareinvolvedanotherareathatposesahighriskisobtaininganaccuratetranslationoaninterviewintoEnglish.Evenslightvariationsintranslationscouldcreatesignicantmisinterpretationsothereportedacts.ReportingfndingsCareulattentionshouldbepaidtotheormandcontentoareportinacross-borderinvestigation.Theremaybeadvantagestoprovidingonlyanoralreportbutthelaborlawsinaparticularjurisdictionmayrequireawrittenreportespeciallyidisciplinaryactionistaken.Manycountrieshavedataprivacylawsthatallowatargetorawitnesstohaveaccesstocertaininvestigatorymaterialincludingawritteninvestigationreport.Beingcompelledtodisclosedatainthiswaycouldaecttheapplicabilityodomesticandoreignlegalprivilegesandcouldexposethecompanytodataprivacyanddeamationclaims.Acompanyneedstokeepinmindthataninvestigationreportmaycontaindatathatisrestrictedrombeingtranserredoutoajurisdictionsuchasnamesoindividualsnancialinormationorpersonaldata.Thereoretheproperdataexportchannelsneedtobeestablishedbeoreprovidingareportevenareportindratormtomanagementordirectorsoutsideothecountry.Theseconsiderationsapplylikewisetoreportsandmaterialspreparedbyexpertsandconsultants.Acompanyconductingacross-borderinvestigationneedstomakesurethatalloitsoutsideexpertsandvendorswhoreceivedatacomplywithlocaldataprivacylawsadvisesJackDeRaadKPMGintheNetherlands.Thiscanbechallengingwhentherearemanyexpertsinvolvedsuchaslawyersorensicaccountantsediscoveryvendorsandcomputerorensicspecialistsespeciallyitheyarelocatedinvariousjurisdictionswithdierentdataprivacyregimes.Anunderstandingolocallawiscriticalinreportingthendingsoacross-borderinvestigation.Thedataprivacylawsosomecountriesrestrictanemployerromreportingtoenorcementauthoritiesthepersonalinormationoundduringaninvestigation.IncontrastothercountriessuchasAustraliarequireanemployerwithevidenceocertaincriminaloensestoreportthemtopolice.Itiseasytoseehowconfictsmightarisebetweenthereportingrestrictionsandrequirementsodierentjurisdictions.Knowingbeorehandireportingrestrictionsexistcanhelptoavoiddicultsituationsattheconclusionoacross-borderinvestigation.AnemployeeinIndiawhowasbeinginterviewedbyacompanysU.S.investigatorclaimedthatshewasintimidatedandharassedbecausetheinvestigatoremphasizedthatheformerlywasafederalprosecutorandthatthecompanywouldtakecriminalactionagainstanyonefoundguiltyofwrongdoing.Theharassmentclaiminterruptedtheinvestigationandcausedtheemployeetorefusetocooperate.Understandinglocalcultureandpracticesmighthavechangedthewayinwhichtheinvestigatorapproachedtheemployee.CaseStudyCross-borderinvestigationsAreyoupreparedorthechallenge172013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. 05RemediationacrossbordersOncetheactfndingstageoacross-borderinvestigationiscompleteacompanymayneedtoremediateanyissuesidentifedwhichcouldincludecorrectingbooksandrecordsfxingcontrolweaknessesanddiscipliningemployees.Takingremedialactioncanbeanimportantdeterminantbyregulatorsbothdomesticandoreignindecidingtochargeacompanywithaviolationoalawortoreducethesizeoacriminalfneorpenaltythatmightbeassessed.Remediationacrossbordershowevercancreateunsuspectingchallenges.Oneothefrstconsiderationsishowtohandleemployeesoundtohaveengagedinwrongdoing.Theseemployeesmayhavedierentlevelsoculpabilityandmaybelocatedinjurisdictionswithdierentlegalorlaborprotectionsagainstadverseaction.Whileitiscriticalthatcompaniespunishemployeesproportionatelytotheirroleinthemisconductitalsoisimportanttoollowlocalregulationswhendoingso.Forinstancecertaincountriesrequireemployerstofrstnotiyanemployeeiheorsheisgoingtobeterminatedorcause.AndinsomeplacessuchasAustriaandBelgiumthisnotifcationmayneedtobemadewithindaysoobtainingevidenceowrongdoing.Whilethekindsopunishmentcanrunthegamutterminatinganemployeecouldtriggerdierentrequirementsindierentjurisdictions.EvenianemployeeisbeingterminatedorcauseyouhavetobecareultoollowlocaldismissalproceduresadvisesMikeSchwartzKPMGintheUS.Thefrstreactionmaybetofreaguiltyemployeeassoonaspossiblebutthatcouldviolatelocallawsoremployeerights.Evenitheevidenceappearstoimplicateapersonthelaborlawsinsomecountriescontainhighstandardsthatmustbemetinordertojustiyaterminationorcause.Domesticandoreignregulatorsalsomaycomplicatemattersbyrequestingthatacompanynotterminateaculpableemployeesothattheregulatorcontinuestohaveaccesstotheemployee.Eveninthissituationacompanyshouldchangetheresponsibilitiesotheaectedemployeetomakesureheorshecannotrepeatpastmisdeedsorbeputinapositionwithacomparableleveloauthoritywhichcouldbeinterpretedasinsufcientpunishment.Anotherkeyareaoremediationistoadequatelyaddressthedefcientinsufcientorineectivecontrolsorproceduresthatallowedthemisconducttooccurortoavoidbeingdetected.Inamulti-nationalcompanythesecontrolsandproceduresneedtobeexaminednotonlyintheaectedlocationbutalsowherevertheyexistgloballyandtheyneedtoberemediatedinecessary.Whileregulatorsmaybeimpressedwiththeoverallleveloeorttheyalongwithmanagementanddirectorsmayinsistonaninterimfxtothecontrolsthatprovidesassurancethatsomeremedialactionisoccurringwhilealongertermsolutionisbeingimplemented.Keepinmindhoweverthatinsomecountriestheremaybelimitationsontheabilityoanemployertomakesubstantivechangestotheworkenvironmentwithoutconsultinglaborunionsorworkerscouncils.Thetimingoremedialactionalsoisaconsideration.Otentimesremediationcanandshouldbeginassoonasinadequateorcompromisedfnancialcontrolshavebeenidentifedevenduringtheinvestigativeactfnding.BoththeboardodirectorsandtheregulatorswillexpectoratleastwelcomepromptattentiontofxingknowngapsworkaroundsorweaknessesincomplianceprotocolsorfnancialcontrolswithoutwaitingortheinvestigationtobecompletedadvisesRoccodeGrasseKPMGintheU.S.Inacomplexmatterremediationomultiplecontrolsacrossmultiplecountriesmaytakealongtimeevenyears.LawenorcementandregulatoryauthoritiesmaybereluctanttofnallyresolveregulatoryandotherproceedingsuntiltheyknowthecompanyhasfxedthegapsinallaectedcountriesandhastakensomesortoactionagainstresponsibleemployeessaysCharliePatrickKPMGintheUK.Thebottomlinewithconductingremediationacrossbordersistostartpromptlyandtoproceedprudently.18Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. Cross-borderinvestigationsAreyoupreparedforthechallenge192013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. Giventhechallengescreatedbycross-borderinvestigationsninety-fvepercentotherespondentsinKPMGssurveyexpectedthattheirneedsorcross-borderinvestigationswillincreaseoratleasttostaythesameoverthenextyear.Addtothistheincreaseinglobalregulationslawsandenorcementactionscompanieswithwelldesignedcross-borderinvestigationprotocolswillbepositionedormorepositiveoutcomesthanthosethatarenotprepared.Ateachstageoacross-borderinvestigationthereareuniquechallengesthatrequireorethoughtandplanningtomanagetherisksandtorespondswitlyandappropriately.Nolongercancompaniesrelyonproceduresandresourcesusedordomesticinvestigations.Insteadtheymustbecustomizedtocomplywithdierentlocallawsandtorespectdiverseculturesandcustoms.WhenallegationscanariseromalmostanywherearoundtheworldatanytimearoundtheclockandinvirtuallyanylanguageeverycompanyshouldanswerthequestionAreyoupreparedorthechallenge06Concludingremarks20Cross-borderinvestigationsAreyoupreparedorthechallenge2013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. LauraAldersonNinaDArcangeloWilliamHanleyIIIJilaneKhakharVictoriaMalloyLissaMitchellContributorsMauriceL.CrescenziJr.KPMGintheUST9739124861Emcrescenzikpmg.comRoccodeGrasseKPMGintheUST3126651296Erdegrassekpmg.comShelleyHayesKPMGinMexicoT525552468634Ehayes.shelleykpmg.com.mxJimmyHelmKPMGintheCzechRepublicT420222123430Ejhelmkpmg.czTimothyHedleyKPMGintheUST2128723496Ethedleykpmg.comDavidHicksKPMGintheUKT442076942915Edavid.hickskpmg.co.ukScottHilsenKPMGintheUST4042223015Eshilsenkpmg.comKenKochKPMGintheUST4046148658Ekckochkpmg.comRachelLayburnKPMGinChinaT861085087075Erachel.layburnkpmg.comMarcMillerKPMGintheUST2128726916Emarcmillerkpmg.comCharliePatrickKPMGintheUKT442076945470Echarlie.patrickkpmg.co.ukPamelaParizekKPMGintheUST2025335362Epparizekkpmg.comAlexPlavsicKPMGintheUKT442073113862Ealex.plavsickpmg.co.ukMikeSchwartzKPMGintheUST7133192258Emschwartzkpmg.comRoyWaligoraKPMGinSouthAfricaT27736222319Eroy.waligorakpmg.co.zaSpecialaknowledgementtoScottHilsenorhissignifcantcontributionsinhelpingwiththesuccessulcompletionothisproject.WewouldliketoacknowledgetheollowingindividualsortheirassistanceCross-borderinvestigationsAreyoupreparedorthechallenge212013KPMGInternationalCooperativeKPMGInternational.KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberirmsotheKPMGnetworkareailiated. ContactusKPMGsGlobalForensicInvestigationsNetworkPhillipOstwaltGlobalAmericasLeaderT4042223327Epostwaltkpmg.comDeanFriedmanEMALeaderT27116478033Edean.riedmankpmg.co.zaMarkLeishmanAsPACLeaderT61732339683Emleishmankpmg.com.auKPMGsGlobalForensicRegionalLeadershipPetrusMaraisGlobalForensicLeaderT27795159469Epetrus.maraiskpmg.co.zaRichardH.GirgentiAmericasRegionForensicLeaderT2128726953Ergirgentikpmg.comJackDeRaadEMARegionForensicLeaderT31206567774Ederaad.jackkpmg.nlGrantJamiesonAsPACRegionForensicLeaderT85221402804Egrant.jamiesonkpmg.comkpmg.comsocialmediakpmg.comappTheinormationcontainedhereinisoageneralnatureandisnotintendedtoaddressthecircumstancesoanyparticularindividualorentity.Althoughweendeavortoprovideaccurateandtimelyinormationtherecanbenoguaranteethatsuchinormationisaccurateasothedateitisreceivedorthatitwillcontinuetobeaccurateintheuture.Nooneshouldactonsuchinormationwithoutappropriateproessionaladviceaterathoroughexaminationotheparticularsituation.2013KPMGInternationalCooperativeKPMGInternationalaSwissentity.MemberfrmsotheKPMGnetworkoindependentfrmsareafliatedwithKPMGInternational.KPMGInternationalprovidesnoclientservices.NomemberfrmhasanyauthoritytoobligateorbindKPMGInternationaloranyothermemberfrmvis--visthirdpartiesnordoesKPMGInternationalhaveanysuchauthoritytoobligateorbindanymemberfrm.Allrightsreserved.TheKPMGnamelogoandcuttingthroughcomplexityareregisteredtrademarksortrademarksoKPMGInternational.DesignedbyEvalueserve.PublicationnameCross-borderinvestigationsreportPublicationnumber121643PublicationdateNovember2013