Mobile Telesystems (MTS) is a multinational telecommunications company based in Russia that specializes in mobile and fixed telephony, broadband, cable TV, and digital services. Recently, MTS has been in the news due to its Deferred Prosecution Agreement (DPA) with the U.S. Department of Justice (DOJ).
A DPA is an agreement between the DOJ and a company where the company agrees to meet certain conditions and requirements for a specified period in exchange for the DOJ deferring prosecution. In MTS`s case, the DPA was related to a Foreign Corrupt Practices Act (FCPA) investigation that began in 2014.
The FCPA prohibits businesses from bribing foreign officials to gain or maintain business. According to the DOJ, MTS allegedly paid bribes to an Uzbekistan government official to secure and maintain its telecommunications business in Uzbekistan. MTS was also accused of engaging in accounting and recordkeeping practices that concealed the bribery scheme.
Under the terms of the DPA, MTS agreed to pay a $100 million penalty, implement a series of compliance measures, and cooperate with ongoing investigations. The DOJ agreed to defer prosecution for three years, after which MTS must demonstrate full compliance with the DPA`s terms.
The MTS DPA is not an isolated case. The DOJ has increasingly pursued FCPA cases against companies operating in foreign countries. The DOJ`s emphasis on FCPA enforcement highlights the importance of compliance for businesses operating globally.
MTS`s experience demonstrates that compliance requires more than just following laws and regulations. It also involves implementing a strong and effective compliance program that includes training, auditing, and monitoring to ensure that employees understand and follow ethical business practices.
In summary, MTS`s Deferred Prosecution Agreement with the DOJ serves as a reminder of the importance of compliance for businesses in today`s global market. By implementing an effective compliance program, companies can mitigate their risks and ensure ethical business practices that are critical to their success.