South African corporates listed on foreign stock exchanges as well as local companies in business with foreign listed firms are increasingly coming under pressure to comply with foreign anti-corruption legislation. This is according to David Rix, commercial forensics consultant at Caveat Legal.
Rix says that all companies doing business in South Africa are required to comply with the Prevention and Combating of Corrupt Activities Act (PreCCA). “However, companies engaged in business with overseas based entities may also have to comply with the United Kingdom Bribery Act (UKBA) policed by the Serious Fraud Office and the United States Foreign Corrupt Practices Act (FCPA) enforced by the US Securities and Exchange Commission. Brazil, Russia and Australia have adopted similar legislation,” he says.