Compliance Insider

Issue 12 > Compliance Alerts

Antitrust compliance programmes needed to combat risk

Increasing antitrust risks such as dawn raids and extraditions, as well as the huge fines that can be imposed on companies, now warrant the creation of an effective antitrust compliance programme. Speakers at the SCCE 2014 Compliance & Ethics Institute in Chicago made the assertion in a session that focused on how best to effectively promote antitrust compliance in organisations and build a programme that supports the effective management and mitigation of antitrust risk.

Issue 12 > Compliance Alerts

Cyber threats are real and cannot be ignored

In the modern world, the threat of cyber theft is as real as any other crime, and although we might feel safe behind a key board the issue needs to be taken as seriously as any other. Speaking on the topic at the SCCE 2014 Compliance & Ethics Institute in Chicago, the FBI’s James Comey used the following metaphor: if you are walking across a car park late at night, you become more conscious of the dangers. You do not look at your feet and listen to music. Instead, you take your car keys out early, and you walk quickly and with confidence to avoid becoming a target for muggers.

Issue 12 > Compliance Alerts

See no evil, hear no evil

Recent research has shown that, when interviewing people, listening to what they are saying is a far better indicator of truthfulness or deceit than body language. Interviewing employees to determine misconduct is often the role of the compliance officer. However, myths around body language often lead to wrong conclusions being drawn.

Issue 12 > Compliance Alerts

Tone from the top vital when building international compliance programmes

Building and maintaining tone from the top is absolutely vital if companies wish to successfully build international compliance programmes. In order to achieve this, chief compliance officers must have unobstructed access to the board.

Issue 12 > Compliance Alerts

Attitudes to compliance shaped by generational differences

In the modern office, four generations might be working together. With that comes a varied approach to compliance. Each generation has experienced different events during their respective lifespan, and these have shaped the way they approach ethical issues in the workplace.

Issue 12 > Compliance Alerts

Huawei executive rejects probe as routine

The chief executive of a Chinese telecommunications equipment manufacturer Huawei Technologies has confirmed a probe into bribery within his company, but dismissed it as a routine investigation into violations of its code of conduct.

Issue 12 > Compliance Alerts

Employees are far from over the moon with cake cuts

The Chinese corruption crackdown has extended into new territory as the traditional distribution of mooncakes during the mid-autumn festival was banned in some companies. Mooncake deprived workers reacted to the news with anger and even strikes.

Issue 12 > Spotlights

Considering cultural characteristics when implementing a compliance programme

Implementing a compliance programme entails transforming some of the ways things are done within an organisation. While effort is often put into training and communicating with staff, these often focus on changing behaviour rather than the cognitive process behind it. To ensure the compliance programme is deeply entrenched, resistance in the form of culturally learned behaviour must be identified and addressed. A good starting point for this is to learn from where others have failed in the past.

Issue 12 > Things To Think About™

Things to think about when conducting bespoke due diligence

It is easy to get confused between the many uses of the term ‘due diligence’. The concept of due diligence is whatever level of thoroughness is necessary to adequately address a risk. In the world of compliance (as opposed to the legal or financial worlds), due diligence tends to be the work that is carried out to help decide whether any particular activity can be done in a way that is consistent with a company’s standards. This might relate to whether a company should deal with a particular distributor, use a particular supplier, or many other topics – some of which occur regularly, others of which are less common.

Issue 12 > Compliance Alerts

Ten recent cases and developments that compliance officers should be aware of

This section analyses the latest high-profile cases and enforcement of new laws and regulations, and guides readers on the steps they should take to protect their organisations from any risks.

Issue 12 > Country Focus

Colombia’s new approach to corruption

‘The answer is Colombia’ is the colourful motto of Marca Colombia, the organisation in charge of Colombia’s national branding. Marca Colombia’s official site contains all sorts of posts that celebrate Colombia’s most distinctive characteristics – including its impressive landmarks, its cultural heritage and even the latest information on their rising football star, James Rodriguez.

Issue 12 > World Watch

US crackdown on tax evasion: What FATCA means for mid-tier banks

As of 1 July 2014, financial institutions must comply with the stringent requirements of the US Foreign Account Tax Compliance Act (FATCA). For mid-tier banks in particular, this will mean significant operational implications, as they will need to change their internal systems, processes and policies regarding products and customers and impose onerous reporting obligations.

Issue 12 > Compliance Alerts

Public outrage forces Myanmar into contract U-turn

The Myanmar Government has made a dramatic U-turn on its decision to award a construction contract to a company without revealing details of the deal. The government has now offered the contract in open tender. The decision comes amid public outrage as the lack of transparency blocked competition for the contract.

Issue 11 > Compliance Alerts

SFO to arrest more in Rolls-Royce probe

The United Kingdom’s Serious Fraud Office (SFO) is planning on making further arrests amid continuing allegations of bribery and corruption at Rolls-Royce. Two people in India have already been arrested, as the SFO investigates concerns involving intermediates in overseas markets.

Issue 11 > Compliance Alerts

Construction magnate to testify in Quebec inquiry

An inquiry into potential corruption and collusion within the construction industry in Quebec will hear from a powerful former construction magnate, despite his attempts to avoid testifying.

Issue 11 > Compliance Alerts

Spinal device manufacturer and surgeon pay US$2.6 million kickback settlement

Spinal surgery device manufacturer Omni Surgical and spinal surgeon Dr Jamie Gottlieb have agreed to pay US$2.6 million to the United States Department of Justice (DOJ). The settlement was in response to allegations that the Austin, Texas-based company, trading as Spine 360, made illegal payments to Gottlieb in exchange for him using Spine 360 products in his surgeries.

Issue 11 > Compliance Alerts

Singapore antitrust chief warns GLCs against complacency

In a proactive attempt to ensure that Singapore enjoys a level playing field for all competitors, regardless of ownership, the city-state’s antitrust head has said he will take action against any government-linked corporation (GLC) that wishes to preserve its dominant position in an anti-competitive way.