Corporate Compliance Australia. 5 Essential Elements of Compliance

Transcription

1 Corporate Compliance Australia 5 Essential Elements of Compliance

2 Today s multinational companies must contend with an ever-changing number of compliance requirements that seem to multiply daily. Australian companies are increasingly transacting in high risk countries and in doing so must navigate Federal and State laws and in many cases extraterritorial laws such as the U.S. FCPA and UK Bribery Act. The good news is that those requirements can be boiled down to five essential elements that if incorporated into a company s compliance program, will satisfy the wide variety of law enforcement expectations and help prevent costly prosecutions v1\MELDMS\AUSAH7

3 1 Leadership A successful compliance program must be built upon a solid foundation of ethical values, otherwise it s just a hollow set of internal rules and regulations. Support from senior management has come to represent this essential ingredient. But compliance standards require more. Companies must also have high-ranking compliance officers with the authority and resources to manage the program day-to-day. And those compliance officers must have the ear of those ultimately responsible for corporate conduct, including the Board of Directors. We develop board-level compliance training and customized corporate management retreats. 2 Risk assessment Enforcement authorities are now demanding that multinational companies have formal processes for assessing the compliance risks everywhere they do business, particularly in emerging markets. As companies become more dependent on global supply chains, knowing the nature of business risks by region, industry, transaction, etc. is a crucial component of a successful compliance program. We perform on-the-ground risk assessments in a variety of challenging markets. 3 Standards and controls It s hard to find a global company today that doesn t have a code of business conduct a summary of corporate do s and don ts. But enforcement authorities require much more detailed written policies and procedures. For example, companies can t just state that their representatives are prohibited from paying bribes. They must have clearly established protocols for screening their partners, distributors and local agents for criminal backgrounds, financial stability and improper associations with government agencies. We develop global codes of conduct, manuals which comply with relevant laws where businesses operate including Australia, FCPA and UK Bribery Act, M&A due diligence protocols and third-party review procedures v1\MELDMS\AUSAH7

4 4 Training and communication Technology such as webinars, video conferencing and online testing has made it much easier for companies to train their officers, employees and third parties on prohibited conduct. But enforcement officials want to know if the message really got through. Thus, company training is often subject to scrutiny regarding the audience, mode and frequency. Live training is the preferred method for employees in higher risk situations. We develop training programs that can be customized by region, country, industry and area of compliance. 5 Monitoring, auditing and response After all the compliance controls have been put in place and communicated to the appropriate audiences, the question remains whether the workforce is actually complying. Implementing this kind of oversight is often the weakest link in a company s compliance program. Yet businesses are required to not only conduct regular audits to monitor employee conduct, but also to respond quickly to allegations of misconduct and discipline those who violate the company s compliance program requirements. We conduct compliance audits and help develop reporting and monitoring procedures v1\MELDMS\AUSAH7

5 Contacts Mini vandepol Partner Mini vandepol has been a partner in Baker & McKenzie's Melbourne office since 2000 and is the head of the Asia Pacific Regional Dispute Resolution Group. Mini is also the Australian lead partner of the Firm's Global Compliance Group where she advises corporate boards and senior management on the formulation and conduct, as well as the consequences, of bribery and corruption investigations, including the development of appropriate compliance policies. Mini also advises clients on the impact of sanctions legislation and assists clients involved in foreign investments and M&A transactions on compliance issues, bribery and corruption risks, conflicts of interest and the protocols necessary to protect legal professional privilege. Georgie Farrant Partner Georgie Farrant is a partner in Baker & McKenzie's Sydney office and a member of the Australian Dispute Resolution, Compliance, Financial Services and Insolvency practice groups. She also serves as a member of the Firm's Global Anti-Money Laundering and Counter Terrorism Financing Group. Georgie practices in commercial disputes, with a particular focus in financial services disputes, including civil actions relating to financial services and financial products, insider dealing and market abuse actions, takeover related actions and advice, and disciplinary actions by regulatory bodies. She also advises companies in relation to a range of compliance and regulatory issues including anti-money laundering, anti-corruption, whistleblowing and regulator investigations.

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