Following the Money Through Distributors - a podcast by Thomas Fox

Polycom came to FCPA grief in China, as have many other US companies. The bribery scheme was long running, occurring from 2006-2014. They included the creation of an off-the books accounting and recordation system for corrupt payments made by or on behalf of Polycom China. The money to fund these bribes came through variations of the basic bribery scheme. There would be a discount between the price reported to Polycom and that paid by the buyer. These discounts were not passed on to the end customer, but instead were intended to cover the cost of the payments the distributors made to the Chinese government officials. In other words, this discount would form the basis of the pot of money to pay the bribe. 
The Chinese business unit was equally creative with the reasons for the discounts, which were listed in the CRM. Polycom China usually cited competition with one or more vendors was required to give discounts on pricing. They also claimed that some end-using customers refused to pay full price. However these were all false excuses entered into the CRM to hide the truth from auditors and others charged with reviewing and approving the discounts.
Three Key Takeaways

Channel your inner Woodward and Bernstein and follow the money.

Simply because some type of compliance oversight is difficult or requires extra effort, it is no excuse not to monitor.

Channel you inner Ronnie Reagan as well and ‘trust but verify.

Further episodes of 31 Days to a More Effective Compliance Program

Further podcasts by Thomas Fox

Website of Thomas Fox