Compliance has taken on an essential role in companies globally, especially with the new requirements of regulators to prevent corporate crime. In fact, it is no longer enough to have compliance programs on paper, but these must be effective to properly ensure good practices and promote ethical behavior among its members.
For this reason, this Tuesday, August 29, BH Compliance together with the prestigious law firm Miller & Chevalier, held the webinar “Compliance: good corporate practices, standards and global expectations”, in order to review what is happening in the world regarding policies and regulations to prevent crimes of collar and tie.
Ricardo Rincón, Consultant at Miller & Chevalier, began his presentation by referring to the updates of the U.S. Department of Justice (DOJ) to address corporate crimes, highlighting the memorandum of the Assistant U.S. Attorney, Lisa Monaco, which includes how to evaluate a company’s corporate compliance program, which is a standard to be followed. In turn, this guide will help prosecutors make informed decisions on whether compliance programs are effective at the time of the infraction, in addition to supporting them in the determination of sanctions. Rincón also referred to some of the major novelties of this update of the DOJ Guide: the use of temporary messaging as corporate communication channels, and the use of competition systems as a means of communication between companies.
Next, Ramón Montero, Director of Operations of BH Compliance, referred to the changes in the prosecution of criminal/administrative liability in Latin American companies. In this regard, he referred to regional trends, where Chile, Peru, Argentina, Colombia and Mexico have regulations to prevent corporate crimes. In this context, he highlighted the changes that the new Law on Economic and Environmental Crimes will bring in Chile, as well as the recent amendments to the regulations in Peru.
Matteson Ellis, Latin America Practice Leader of Miller & Chevalier, presented case studies of Latin American companies sanctioned under the Foreign Corrupt Practices Act (FCPA), which show that a minimal link between a company and the United States is enough to fall under the jurisdiction of this law, such as, for example, being listed on the U.S. stock exchange. In addition, Ellis referred to the key corruption risks most common in Latin America: use of third parties, intermediaries and partners; bidding and business with state-owned companies; police and extortion; regulatory risks; customs; gifts and invitations; acquisitions of family-owned companies; donations; and culture of impunity.
Finally, Susana Sierra, CEO of BH Compliance, spoke about how the change in regulations affects compliance programs, explaining that this factor adds to the current concerns of company directors, who today must also focus on sustainability, economic fragility, new technologies and talent retention. For the same reason, he called on companies to focus on the prevention of those crimes that really affect them, implementing compliance programs that address their real risks, being aware that companies can be involved in cases of corruption, and that is why it is essential to establish controls and generate evidence that they are doing their best to prevent. “If nobody believes that nothing is going to happen to them, it is difficult to implement a good compliance program,” he said. He also referred to the legalistic vision that prevails in countries such as Chile, where compliance is seen as its literal translation, i.e. complying with the law, when in reality it is how things are done.
