International contracts often contain virtuous clauses in which the parties undertake to comply with certain obligations relating to the fight against corruption and money laundering or in favor of human rights.
For years, these clauses were seen as catalogues of good intentions with no real practical implications. This is no longer the case.
Criminal or reputational risks are leading companies to increase their demands on their service providers, sometimes going so far as to conduct audits to ensure that contractual compliance obligations are duly complied with.
It is not uncommon for payment to be withheld or contracts to be terminated due to alleged breaches of compliance obligations.
