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Spotlight On... ICross-Border Phil Ostwalt, KPMG
“To be well prepared, companies with global operations should proactively train employees
about investigation
different jurisdictions so that they can respond quickly. Trying to educate local resources after an allegation has been received may lead to delays that can sidetrack an investigation.”
P Q
hil Ostwalt is a Partner with KPMG and serves
as the
United States Leader of the Investigation Services Network in addition to coordinating
KPMG’s Global Investigation Services. Phil is a Certified Public Accountant, and has worked in the field of Forensic Accounting for over twenty years.
What more can you tell us about your specific practice with KPMG?
KPMG’s Investigation Services team helps clients determine the relevant facts and circumstances of fraud, misconduct, or violations of laws, regulations, or company policies. The types of investigations that we perform include fraudulent financial reporting, bribery and corruption, embezzlement, conflicts of interest, and data breach matters.
We also help
organizations in their efforts to identify appropriate remedial actions, make restatements, and communicate with regulators and the outside auditor. Team members include professionals who previously served in law enforcement, worked in regulatory agencies, or had a career in the legal profession. Others have significant experience in forensic accounting, auditing, data analytics,
finance, technology, and organizational integrity.
Q
What is the importance of carrying out cross-border investigations?
There are a number of reasons that a company will take on an investigation. For example, as a result of an allegation of fraud or significant misconduct, the company may have experienced a financial loss, have concerns about a regulatory breach, or believe there may be employees violating the company policy.
Performing a proper investigation is critical.
There are several key initial
planning considerations which will allow the investigation to get off on a proper start. For instance, there must be timely identification and preservation of the evidence necessary for review. If the allegation
actually result in violations of local law. For instance some countries require notification to an employee who is the subject of an allegation as well as notification to employee representatives or work councils, especially if the employee’s data will be reviewed. Confidentiality laws also may restrict to whom a company can disclose an allegation, even internally. Because the labor laws and data privacy laws do vary from country to country, it is critical to understand them at the initial intake stage of the investigation.
Given these jurisdictional and cultural differences, certain tactics considered effective in a particular country may prove counterproductive in certain foreign settings. This can require a fundamental difference
between the has come in from another
country, it will be critical to have a proper translation conducted of the report.
Q
What are the risks of insufficient or ineffective investigation efforts?
Some countries have unique in-country legal requirements,
in conducting an investigation
and missteps can
mindset of a case manager or investigator conducting an investigation on foreign soil. Case managers need to remember that employment law may differ significantly from country to country.
themselves when conducting cross- border investigations?
Q
KPMG recently surveyed 60 executives who are responsible
for overseeing What challenges often present protocols in
nvestigations
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