Promoting compliance programmes in companies as part of anti-corruption

policyBorys Malyshev

anti-corruption expert UNDP in Ukraine

Section X «Prevention of Corruption in Activities of a Company»

of the Law of Ukraine «On Prevention of Corruption»

Article 61. General principles of prevention of corruption in activities of a company

Article 62. An anti-corruption programme of a company

Article 63. Requirements for an anti-corruption programme of a company

Article 64. The legal status of a compliance officer

The Law* provides that companies must put into effect anti-corruption programmes for:

1) any state/municipal company or business (having state/municipal share over 50%) with an average number of

more than 50 listed employees (in the referenced financial year) and over 70 mln UAH of gross sales for such period

2) any company engaged in public procurement (if the cost of

procurement is equal to or over 20 mln UAH for the procurement of

goods and/or services)

*Article 62 of the Law of Ukraine «On Prevention of Corruption»

Anti-corruption programme is a set of rules, standards, and

procedures for identifying, combating, and preventing corruption in activities of a

company

In a typical anti-corruption programme, anti-corruption measures include:

Periodic assessment of corruption risks in a company

Anti-corruption standards and procedures

Periodic assessment of corruption risks in a company

Internal assessment is carried out:

•At least 1 time in 1 year•By a special commission consisting of employees of a company and headed by compliance officer.

External assessment is carried out:

• At least 1 time in 3 years• By outside consultants: law

firms, audit companies, specialized organizations.

A typical anti-corruption programme

The main anti-corruption standards and procedures of a company are:

1) an introductory instruction for new employees on the content of an anti-corruption programme;

2) anti-corruption checking of business partners;

3) anti-corruption clause in agreements, employment contracts, and job descriptions;

4) a criteria for selection of business partners;

A typical anti-corruption programme

The main anti-corruption standards and procedures of a company are:

5) restrictions on support of political parties, realization of charitable activity;

6) mechanisms for reporting on violations of anti-corruption programme, corruption or corruption-related offenses. and confidentiality of communications and protection of whistleblowers;

7) a compliance officer's and other authorized officials' performance of their functions for prevention of corruption;

8) a procedure for consideration of communications of whistleblowers, including internal investigations and disciplinary penalties;

A typical anti-corruption programme

The main anti-corruption standards and procedures of a company are:

9) rules on professional ethics and responsibilities and prohibitions for employees and officials;

10) a mechanism for identifying and resolving conflicts of interest;

11) restrictions on offers and acceptance of gifts;

12) supervision and monitoring of compliance with anti-corruption programme.

A typical anti-corruption programme

Thank you for your attention!

©Borys Malyshev, 2017