The global investigation maze: Key takeaways from Singapore

As businesses expand across borders and regulatory scrutiny intensifies, investigations are becoming increasingly complex, involving multiple jurisdictions, overlapping legal obligations and competing enforcement priorities.

What may initially appear to be a local employment issue, tax query or compliance concern can quickly evolve into a cross-border matter involving regulators, business partners, financial institutions and authorities across several countries. These themes were explored at a closed-door discussion, the third in an ongoing series hosted by Withers KhattarWong in Singapore.

Led by Shashi Nathan, white-collar crime partner and joint managing partner at Withers KhattarWong, the session brought together in-house counsel, compliance professionals, investigators, risk advisers and corporate leaders to exchange views on the practical realities of managing investigations in an increasingly international environment.

Building on insights from previous discussions on anti-corruption and anti-money laundering compliance, this session focused on the challenges of navigating investigations that span borders, regulatory regimes and stakeholder groups.

Independent investigations can strengthen credibility and governance

A central theme throughout the discussion was the importance of independence when conducting investigations involving allegations of misconduct, regulatory breaches or internal concerns.

While many organisations have capable internal audit, compliance and legal functions, certain situations may require external involvement to ensure objectivity and maintain stakeholder confidence.

Shashi observed, "An investigation needs to uncover information and give management enough facts to make a decision. It does not always lead to a police report or prosecution, but organisations need an objective assessment to understand what has happened and how best to respond."

Independent investigations can be particularly valuable where allegations involve senior executives, sensitive governance issues or circumstances where internal teams may be perceived as lacking sufficient separation from the matter under review.

Boards, regulators and external stakeholders increasingly expect organisations to demonstrate that concerns have been examined thoroughly and impartially.

Legal privilege remains a critical consideration

The discussion repeatedly returned to the importance of preserving legal privilege during investigations, particularly where disputes, regulatory action or litigation may emerge later.

Pardeep Khosa, partner and head of litigation at Withers KhattarWong, emphasised, "Privilege allows organisations to investigate thoroughly, knowing that the reports, communications and findings generated during the process remain protected. The objective is to make a conscious and informed decision about what to disclose, rather than finding yourself compelled to hand everything over later."

Privilege considerations become even more complex in cross-border matters, where different jurisdictions may apply different rules regarding legal advice privilege, in-house counsel communications and disclosure obligations.

Several attendees shared experiences where employees and business teams, acting with the best intentions, unintentionally create risks through emails and communications, which could have been avoided if it were properly managed during sensitive investigations.

Cross-border tax scrutiny is creating new investigation risks

Participants also discussed how growing information-sharing between tax authorities is contributing to an increase in cross-border enquiries and investigations.

Hon Yong Sheng, partner in the private client and tax practice at Withers KhattarWong, observed, "Many people underestimate the value of tax due diligence or the repercussions of getting it wrong. Some tax issues can emerge years later, and in many jurisdictions, penalties are calculated as a multiple of the tax underpaid, creating significant exposure."

International reporting frameworks and increasing cooperation between tax authorities are enabling regulators to identify and assess offshore structures, asset holdings and cross-border arrangements more effectively than ever before.

High-net-worth individuals, family offices and multinational businesses are increasingly facing enquiries that involve multiple jurisdictions simultaneously, requiring coordinated advice across legal, regulatory and tax disciplines.

Preventive planning, careful documentation and early engagement with advisers remain significantly more effective than responding after formal investigations have commenced.

Cross-border matters require local knowledge and coordinated responses

The discussion highlighted the practical difficulties of managing investigations across different countries, particularly within Asia.

Gary Beh, corporate partner at Withers KhattarWong, noted, "Clients sometimes underestimate the value of an independent third party. Internal teams may know the business best, but investigations involving senior management or sensitive allegations often require an objective process that stakeholders can trust."

Successful investigations require more than technical legal knowledge. Cultural understanding, local business practices and familiarity with regulatory expectations can significantly influence how matters are handled and resolved.

Approaches that work in one jurisdiction may be ineffective in another, making local expertise an important component of any cross-border strategy.

The need for collaboration between lawyers, investigators, tax advisers, compliance professionals and business stakeholders is growing. Rather than operating in isolation, organisations increasingly benefit from coordinated teams that can assess risks from multiple perspectives.

Early action often determines the quality of the outcome

Another recurring theme was the importance of acting quickly once concerns are identified.

Delays can significantly reduce the effectiveness of an investigation. Documents may be lost; data may become unavailable and witness recollections may fade over time.

In-house counsel often faces challenges persuading management teams to invest in investigations, particularly where risks appear remote or costs appear significant at the outset.

However, many attendees shared experiences where early intervention helped organisations avoid substantially greater financial, regulatory and reputational consequences later.

Investigations are no longer solely a legal issue. As regulatory cooperation grows and information flows more freely between jurisdictions, investigations increasingly sit at the intersection of governance, risk management, compliance, tax, reputation and business strategy.

Organisations that invest in preparation, education and coordinated response frameworks are likely to be better positioned to navigate the increasingly complex global investigation landscape.

If you need support navigating cross-border investigations, regulatory enquiries or internal investigations, please do not hesitate to reach out to our team of legal specialists.