FCPAméricas Blog
Six Compliance Lessons from the 2012 Latin America Corruption Survey (Part 3: Take-Aways for the Compliance Officer)
9.27.2012
The following article by FCPA attorneys James Tillen of Miller & Chevalier Chartered and Matteson Ellis of Matteson Ellis Law PLLC was originally published in the widely-read FCPA Report on September 5, 2012. It is republished below with the publication’s permission. Part 1 discusses subtle signs of improvement in the compliance environment. Part 2 discusses compliance program benchmarking. And Part 3 (below) discusses take-aways for the compliance officer.
Overall, the 2012 Latin America Corruption Survey suggests that corruption risks in Latin America are dynamic. Companies and their compliance officers must take into account the nature of specific and evolving risks in the locations in which they operate when building their compliance strategies. Compliance officers can leverage the survey results in administering their anti-corruption compliance programs in Latin America. Here is a list of some, among many, ways in which the survey results can help. The survey:
1. Provides context for regional partners. Compliance officers can use the fact that more people in the region are aware of anti-corruption compliance practices to their advantage. When dealing with a potential Latin American partner or third party who is reluctant to participate in due diligence processes, accept compliance provisions in contracts, or embrace other compliance best practices, companies can use the survey results to show that such requirements are now commonly accepted.
2. Shows need for greater U.K. Bribery Act awareness. The results suggest that compliance officers responsible for companies operating in the region and subject to U.K. jurisdiction will want to spend more time building awareness of the risks associated with the U.K. Bribery Act, given the apparent low levels of current awareness.
3. Highlights lack of local law deterrent effects. Depending on where their companies are operating in the region, compliance officers can consult the survey to better understand the possible deterrent effects, or lack thereof, of local anti-corruption laws. The poor opinion of local laws in many countries might indicate that compliance officers should bolster their efforts beyond local law considerations to ensure they adequately address risk.
4. Helps shape compliance strategies. Compliance teams have limited resources. The survey’s findings about different countries’ varying degrees of risk provide an empirical guidepost to help shape compliance strategies. For example, when operating in Mexico, compliance officers will want to be particularly focused on police risk. In Venezuela, they should pay extra attention to their dealings with customs officials and the Executive Branch.
5. Provides basis for trainings. In conducting anti-corruption compliance trainings in the region, the survey data can provide a helpful starting point for discussions on the nuances of risks found on the ground. Trainers can ask trainees if the results comport with their day-to-day experiences. If they do, what does that risk actually look like in practice? If not, what might account for the difference? Training is most effective when it has context and involves participation and real life scenarios and role plays.
6. Benchmarks current practices. Compliance officers can use the data as a benchmark for understanding how their own programs compare to those of others in their category. If a multinational company operating in the region does not have specific policies for gifts, travel and entertainment of officials, it now knows that it is in a 20% minority. If a publicly listed company is not incorporating anti-corruption terms into its contracts with local companies, it knows that it is among a group of less than a quarter of its peers in lacking this practice.
These are just a few of the many ways that the empirical data of the 2012 Latin American Corruption Survey can help compliance officers do their jobs more effectively.
The FCPAméricas blog is not intended to provide legal advice to its readers. The blog entries and posts include only the thoughts, ideas, and impressions of its authors and contributors, and should be considered general information only about the Americas, anti-corruption laws including the U.S. Foreign Corrupt Practices Act, issues related to anti-corruption compliance, and any other matters addressed. Nothing in this publication should be interpreted to constitute legal advice or services of any kind. Furthermore, information found on this blog should not be used as the basis for decisions or actions that may affect your business; instead, companies and businesspeople should seek legal counsel from qualified lawyers regarding anti-corruption laws or any other legal issue. The Editor and the contributors to this blog shall not be responsible for any losses incurred by a reader or a company as a result of information provided in this publication. For more information, please contact Info@MattesonEllisLaw.com.
The author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author.
© 2013 Matteson Ellis Law, PLLC
Post authored by Matteson Ellis, FCPAméricas Founder & Editor
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