presentation: cross-border anti-corruption programs

CROSS-BORDER ANTI-CORRUPTION PROGRAMSLEAS BACHATENECHIEF EXECUTIVE OFFICERETHIXBASE

Presented at:Asian Compliance and Anti-Corruption Summit

11th – 12th January 2017Copyright © 2017 ethiXbase, All rights reserved

OVERVIEW• Overview of the current anti-corruption landscape

• Key anti-corruption trends

• Hallmarks of an effective cross-border anti-corruption program

• Guidance for anti-bribery good practice: ISO 37001

• Concluding remarks & takeaways

Copyright © 2017 ethiXbase, All rights reserved

THE CURRENT ANTI-CORRUPTION LANDSCAPE

• 2016 has seen a dramatic eruption of corruption scandals catapulting corruption and anti-corruption to the forefront of the business and social conscious.

• Calls for ethical conduct and corporate transparency have never been this intense. The urgent need to rise to expanded challenges of meeting regulatory expectations as well as market expectations from stakeholders including investors, consumers and the media.

• As the corruption landscape continues to evolve along with expanding business networks and cross-market business opportunities, anti-corruption efforts need to evolve to keep pace.

Soaring exposure of corruption cases signals the growing importance of anti-corruption compliance. How can organisations develop robust cross-border anti-corruption programs to protect themselves from allegations of corruption in their business networks?


ANTI-CORRUPTION TREND #1ANTI-CORRUPTION EFFORTS ARE GLOBALISING AND WILL CONTINUE TO GROW IN ALL CORNERS OF THE GLOBE.

• Growing cross-border cooperation among enforcement authorities and countries

• Corruption investigations that arise in one country now extend to other parts of the world

Record multi-country corruption settlement: Petrobras Bribery Scandal

'Operation Car Wash', one of Brazil's largest corruption investigations also pursued by US and Swiss authorities, made headlines again at the close of 2016. After a close to 3-year investigation, it was reported that Odebrecht SA and Braskem SA are set to pay a record corruption penalty ever levied by global authorities. The US DOJ said the total penalty amounted to at least $3.5 billion, including $2.6 billion from Odebrecht and $957 million from Braskem.


ANTI-CORRUPTION TREND #2ANTI-CORRUPTION EFFORTS ARE INTENSIFYING.

SOUTH KOREA

In effect on September 28th 2016, South Korea’s strictest-ever anti-graft law, the Kim Young-ran Law, limits what people working for the government, media outlets and schools can accept, capped at 30,000 won (US $27) for meals, 50,000 won (US $45) for gifts and 100,000 won (US $90) for congratulatory and condolence money.

THAILAND

In January 2017, the National Reform Steering Committee approved a proposal stipulating that Thai officials convicted in corruption cases involving more than 1 billion baht (US$28 million) could face the death penalty. The measure must now be submitted to Cabinet, parliament and to Thailand's constitution committee for deliberation before it is adopted.

MALAYSIA

In January 2017, the Malaysian Anti-Corruption Commission (MACC) was reported to have been monitoring social media posts (particularly Facebook & Instagram) of Malaysian civil servants and their spouses to detect those who enjoy lifestyles that are not commensurate with their earnings. The MACC said such initial information is considered to carry out further checks if required.

CHINA

In January 2017, nearly 1.2 million people were reported to have been punished in China's ongoing anti-graft campaign, with the government continuing to double down on the drive. The Central Commission for Discipline Inspection (CCDI) said nearly 2,600 fugitives have been extradited or repatriated, and US$1.2 billion worth of assets have been recovered as part of the campaign.


ANTI-CORRUPTION TREND #2ANTI-CORRUPTION EFFORTS ARE INTENSIFYING.The top 10 biggest FCPA settlements to-date begin from 2008

TOP 10 COMPANY YEAR COUNTRY SETTLEMENT ($US)

1 Siemens AG 2008 Germany $800 million

2 Alstom 2014 France $772 million

3 Kellogg Brown & Root LLC (KBR)/ Halliburton 2009 US $579 million

4 Teva Pharmaceutical Industries 2016 Israel $519 million

5 Och-Ziff Capital Management Group 2016 US $412 million

6 BAE Systems 2010 UK $400 million

7 TOTAL SA 2013 France $398.2 million

8 VimpelCom 2016 Netherlands $397.6 million

9 Alcoa 2014 US $384 million

10 Snamprogetti Netherlands B.V. / ENI S.p.A 2010 Netherlands/ Italy $365 million


ANTI-CORRUPTION TREND #2ANTI-CORRUPTION EFFORTS ARE INTENSIFYING.

FCPA enforcement cases have seen an upward spike in the last decade

26


2016 & 2017 MAJOR CORRUPTION SCANDALS

HEADLINESWORLD'S BIGGESTBRIBE SCANDAL, UNAOIL:THE COMPANY THATBRIBED THE WORLD

PANAMA PAPERS:LEAK EXPOSES

TAX HAVENS OFWORLD LEADERS

AND CELEBS

PETROBRAS SCANDAL: BRAZILIAN FIRMS TO PAY RECORD $3.5 BILLION PENALTY IN CORRUPTION CASE

MALAYSIANS TAKE TO THE STREETS OVER 1MDB SCANDAL

LOTTE SIGNALS $4.5 BILLIONHOTEL IPO IS SHELVED

AMID CRISIS

INDIA ABOLISHES 500 AND 1,000 RUPEE NOTES TO FIGHT CORRUPTION

THAILAND CONSIDERS DEATH PENALTY FOR OFFICIALS CONVICTED OF GRAFT

CHINA ANTI-GRAFT DRIVE HAS PUNISHED 1.2 MILLION


HALLMARKS OF AN EFFECTIVE CROSS-BORDER ANTI-CORRUPTION PROGRAM

ANTI-CORRUPTION DUE DILIGENCE

LAWS & REGULATIONS

DEMONSTRATING THE RIGHT TONE FROM THE TOP

ANTI-CORRUPTION TRAINING

ENFORCEMENT ACTIONS

CUSTOMS & EXCISE

CREATING A CULTURE OF

WHISTLEBLOWING


GUIDANCE FOR ANTI-BRIBERY GOOD PRACTICE

LEARN MORE AT ETHIXBASE.COM/ISO37001

Some key measures required under ISO 37001:

Do you conduct regular assessments of bribery risk and risk-based due diligence on projects and business associates?

Do you currently have a consistent anti-bribery program along with clear policies outlining acceptable conduct? Are these anti-bribery policies communicated within your organisation and to third parties?

Do you demonstrate commitment to anti-corruption goals by providing periodic training to staff, management and third parties to ensure that global and local anti-corruption requirements, regulatory changes and any updates in your organisation’s anti-bribery program and policies are understood and adhered to?

Do you encourage the use of reporting procedures for suspected and actual bribery, such as through the implementation of whistleblowing procedures?


http://ethixbase.com/iso37001/

TAKEAWAYS

• More than ever, organisations are held to increasing standards of ethical conduct and corporate transparency.

• With today’s supply chains becoming increasingly complex, it is important that organisations know who they are doing business with and develop a robust anti-corruption program to safeguard themselves from allegations of corruption within their business networks.

• Organisations which do not have anti-corruption programs in place or are doing little to no anti-corruption due diligence can look to international standards such as ISO 37001, which provides minimum requirements and supporting guidance for anti-bribery good practice.


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presentation: cross-border anti-corruption programs

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