Bribery and Corruption

Transcription

1 Bribery and Corruption Anti-Corruption Programs 2018 Association of Certified Fraud Examiners, Inc.

2 Discussion Questions 1. What companywide policies does your organization have in place to address the risks of corruption? How are these policies disseminated to employees? Who is responsible for ensuring compliance with these policies? 2018 Association of Certified Fraud Examiners, Inc. 2 of 27

3 Discussion Questions 2. What information is communicated to employees in your organization regarding corruption risks and procedures for reporting suspected fraud? What methods are used to disseminate this information? 2018 Association of Certified Fraud Examiners, Inc. 3 of 27

4 Discussion Questions 3. Does your organization use continuous or automated monitoring to address fraud risks? If so, how successful has it been in identifying potential frauds? 2018 Association of Certified Fraud Examiners, Inc. 4 of 27

5 Introduction Anti-corruption programs: Communicate management s philosophy toward fraud and ethical behavior. Harness the efforts of the full staff. The FCPA and the UK Bribery Act encourage regulated organizations to implement anticorruption programs Association of Certified Fraud Examiners, Inc. 5 of 27

6 Introduction This section is divided into four parts: Questions to expect from regulators Elements of an anticorruption program Standards and tools Other guidance 2018 Association of Certified Fraud Examiners, Inc. 6 of 27

7 Questions to Expect from Regulators Is the program well designed? Is the program being applied in good faith? Does the program work? 2018 Association of Certified Fraud Examiners, Inc. 7 of 27

8 Periodic testing and review Anticorruption policies and procedures Ethical tone at the top Due diligence Disciplinary procedures Elements of an Anti-Corruption Program Training Risk assessment Continuous monitoring Management oversight Internal controls A reporting system 2018 Association of Certified Fraud Examiners, Inc. 8 of 27

9 Code of conduct and anti-corruption policies and procedures that: Are clear, practical, accessible, and enforceable Are proportionate to the organization Include a formal code of conduct Apply to all relevant individuals and entities Include a number of items 2018 Association of Certified Fraud Examiners, Inc. 9 of 27

10 Ethical tone at the top The tone at the top is the ethical (or unethical) atmosphere in the workplace. Management must be committed to preventing corruption, and it must build an ethical environment. To set the right tone, management can: Make a statement of commitment. Lead by example. Provide a safe reporting mechanism. Reward integrity Association of Certified Fraud Examiners, Inc. 10 of 27

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12 Training and continuing advice Offer employees training on common issues and red flags. The training should be based on the organization s operations and needs. Training must be user-friendly and appropriate. Training must be an ongoing process Association of Certified Fraud Examiners, Inc. 12 of 27

13 Use of risk assessments An organization s anti-corruption program should change as its risks change. Risk assessments should be periodic, informed, and documented. Risk assessments should consider both internal and external risks Association of Certified Fraud Examiners, Inc. 13 of 27

14 Management oversight, autonomy, and resources One or more senior corporate executives should be assigned to implement and oversee the company s anti-corruption policies, standards, and procedures. Those assigned responsibility must have the autonomy, authority, and resources to manage and enforce the program and react to issues that arise under it Association of Certified Fraud Examiners, Inc. 14 of 27

15 Reporting system (hotline) and response plan: Establish a system whereby employees and other agents can confidentially report, or seek guidance regarding, actual or potential criminal conduct without fear of retribution. Include a response plan that establishes a process for investigating reported allegations and documenting the response Association of Certified Fraud Examiners, Inc. 15 of 27

16 Internal controls Implement internal controls reasonably designed to deter, detect, and investigate corruption. Management must: Ensure that assets are properly reflected. Require authorization to access the assets. Maintain control of transactions. Properly book transactions. Controls should identify red flags Association of Certified Fraud Examiners, Inc. 16 of 27

17 Continuous monitoring A control involving the use of data analysis on a continuous basis to test for fraud Based on the risk assessment and includes tests of the types of transactions that pose the greatest risks 2018 Association of Certified Fraud Examiners, Inc. 17 of 27

18 Incentives and disciplinary procedures: Establish and adhere to a system of disciplinary measures for rule breakers and incentives for those who demonstrate good behavior. The program should identify the range of possible disciplinary measures for violations. Promote the program with suitable incentives (e.g., promotions, rewards, recognition) Association of Certified Fraud Examiners, Inc. 18 of 27

19 Due diligence: Management should exercise due diligence in seeking to prevent and detect criminal conduct by its employees and other associates. Companies should implement due diligence for employees. Companies should implement due diligence for third parties Association of Certified Fraud Examiners, Inc. 19 of 27

20 Periodic testing and review: An organization s program should evolve as its practices and risks change over time. Management should review and improve the company s anti-corruption programs on a regular basis Association of Certified Fraud Examiners, Inc. 20 of 27

21 Standards and Tools The Open Compliance and Ethics Group (OCEG) International Organization for Standardization (ISO) UHY Advisors compliance risk calculator tool PEP screening services Watch lists Business Principles for Countering Bribery Risk maps Procurement fraud checklists 2018 Association of Certified Fraud Examiners, Inc. 21 of 27

22 Other Guidance Business Ethics: A Manual for Managing a Responsible Business Enterprise in Emerging Market Economies Fighting Global Corruption: Business Risk Management The Bribery Act 2010 Guidance Good Practice Guidance on Internal Controls, Ethics, and Compliance 2018 Association of Certified Fraud Examiners, Inc. 22 of 27

23 Other Guidance Anti-Corruption Code of Conduct for Business Rules on Combating Corruption Business Principles for Countering Bribery: Small and Medium Enterprise (SME), Edition 5 Integrity Compliance Guidelines Partnering Against Corruption: Principles for Countering Corruption 2018 Association of Certified Fraud Examiners, Inc. 23 of 27