No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
No Result
View All Result
Corporate Compliance Insights
Home Compliance

1-2-3s of ABAC Compliance Programs

9 signs your anti-bribery & anti-corruption efforts are working

by Jag Lamba
March 1, 2023
in Compliance
abac

Despite the proliferation of laws aimed at fighting bribery and corruption, a recent international report found that most countries are failing to stop corruption. How can organizations ensure they’re doing their part? Certa’s Jag Lamba offers nine signs that your company’s ABAC program is on the right track.

Anti-bribery and anti-corruption (ABAC) laws and standards govern business transactions and prohibit the exchange of anything of value (cash as well as goods and services) that would illegally influence either party toward taking, or not taking, a certain action. For example, the FCPA, one of the most prominent ABAC laws in the U.S., states that it is unlawful for “persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.”

Keeping up with these laws is crucial in keeping risk down at any organization and doubly so if it does business internationally. Many countries have their own set of ABAC laws that must be adhered to, and it’s inadvisable to embark on a new campaign in those markets without preparing to meet those standards. Such laws include the UK Bribery Act, the Clean Company Act in Brazil, Canada’s Corruption of Foreign Public Officials Act and many others in Germany, Russia, China, Malaysia and beyond.

boris johnson resigns as UK prime minister
Ethics

Report: Most Countries Failing to Stop Corruption

by Staff and Wire Reports
February 2, 2023

Denmark remained the least corrupt country in the world for the fifth year running, according to the recently released Transparency International corruption perceptions index for 2022, while the U.S. improved its score for the first time since 2016.

Read more

Transparency International’s Corruption Perceptions Index (CPI) ranks countries with the highest corruption levels. Its 2022 rankings found that most countries are failing to stop corruption, and the organization ranked Denmark, Finland and New Zealand as the least corrupt countries with Somalia, Syria and South Sudan coming in as the most corrupt.

Additionally, some industries are at a higher risk for corruption and bribery than others. Extraction (mining, oil and gas sectors) have for a long time been a hotbed of corruption, while construction has seen bribery and corruption rates escalate in recent years. And other sectors like technology, aerospace and defense are rife with corruption and bribery risks.

ABAC laws are important safeguards in countries and industries, and the penalties for violating them can be severe, so it’s crucial for companies to follow them at all times. The cost of noncompliance is not cheap — just ask Glencore Energy or ABB.

Of course, it’s one thing to want to adhere to these ABAC laws, but how can companies know if they’re compliant in practice with, say, the FCPA? There are some essential signs of anti-bribery compliance like employee and stakeholder training, systematic onboarding of third parties, documented and written codes of conduct and more.

Let’s touch on nine signs that a company’s ABAC policies are likely healthy and are keeping the company in a low-risk position when it comes to bribery and corruption. 

1. Clear direction from the top

The tone coming from company leadership has an incredible impact on preventing bribery up and down the entire organization. If the CEO and other executives and managers regularly speak out about not tolerating bribery or corrupt business dealings, that will help to create a culture of compliance with ABAC regulations.

On the other hand, if no attention is paid to corruption and bribery prevention and the repercussions of breaking ABAC laws, and the culture is one that is more concerned with “getting the deal done, whatever it takes,” there is a heightened risk of such actions being taken by individuals throughout the company.

2. Anti-bribery and anti-corruption training

Even more than just talking the talk, businesses need to walk the walk. That can mean a number of the following items on this list, but a big part of taking action includes proper anti-bribery and anti-corruption training for all relevant parties. Depending on a company’s unique situation, those relevant parties can include all officers, directors, employees, stockholders and third-party agents, among others.

Those third-party agents can include consultants, distributors, joint-venture partners and more — the key here is making sure everyone is on the same page and trained consistently across the board.

3. Robust onboarding processes

A robust way to systematically onboard third parties can close a lot of the gaps that sometimes lawbreakers take advantage of (like not having a supplier or partner properly on the books for a period of time, providing cover for illicit transactions or negotiations before they’re in the system).

Further, some third-party management and onboarding software can help to screen for potential supplier and partner risks right at the point of onboarding. If a third party has a history of corruption, or is at a higher risk of bribery entering the picture, being able to flag that during onboarding goes a long way toward preventing the problem from growing.

4. Codes of conduct and compliance

More than just talking about expectations around bribery and corruption prevention, it’s extremely important for companies to actually have their codes of conduct and compliance requirements written down and available to all parties in advance.

A written code of conduct and compliance policies and procedures (for example, what to do if you suspect illicit dealmaking happening or if a partner offers a bribe?) will help guide employees through situations that may arise. It also might provide cover if any cases come to light, since a printed and posted code of expectations around ABAC compliance is key in demonstrating that any employee who is engaging in bribes or corruption is explicitly doing it against the stated company policy.

5. Solid disclosure capabilities

It’s not unusual for a lack of visibility into a company’s ties to other businesses, government officials or state-owned entities to accidentally land a well-intentioned business deal into ethically (and legally) perilous waters.

Companies should put in place the technical capabilities to identify or capture any disclosures indicating any ties to relevant individuals or organizations as early as possible — even potentially in the onboarding or discovery steps.

6. Compliance screening and ongoing monitoring

Beyond just capturing disclosure information, companies should make sure they are doing their due diligence to reduce bribery and corruption risks by screening partners and third parties for compliance with relevant laws.

This should happen at the point of onboarding, but not end there. Ongoing monitoring is necessary. After all, just because a partner is compliant today does not mean they will remain so tomorrow. Automation capabilities in certain third-party management tools make ongoing monitoring possible without an undue burden being placed on employees to do it manually.

7. Oversight and review processes

It’s not enough to put these capabilities and expectations in place; follow-through is needed. Thorough oversight and review processes will help dissuade individuals from trying to sneak an illicit deal past management, and catching any corruption in its early stages will reduce the potential ramifications and allow management to deal with it swiftly.

Additionally, all companies should make sure that they also have the ability to, once they have identified high-risk entities or relationships, escalate those to appropriate parties for careful review.

8. Audit trails

At some point, any organization may need to provide documentation about its ABAC prevention methods and what, specifically, was done in the case of a bribery or corruption incident.

Proper books and records will save many headaches down the road if they’re being kept along the way. Organizations should look to record as much as they can, so looking for that documentation feature in any tool or process that involves the coordination or communication between the company and a third party should be a priority.

9. Employee hotlines

No matter how much a company puts in place to make their operation bribery- and corruption-free, there’s always the possibility that one of the people working at that company goes against this training and breaks an ABAC law.

Providing a way for others to contact upper management to make them aware of what transpired—anonymously and without reprisal—is an important part of empowering an employee base to stop corruption in its tracks.

Each of these items can help keep a company compliant with anti-bribery and anti-corruption laws where they do business. Some can easily be implemented on top of existing activity, while others will require a more fundamental change to the way certain things are done at an organization.

Either way, the lack of any of these aspects might be a signal that there is a hole in a company’s defenses against bribery and corruption. To reduce risks during this crucial time ahead of us, patching those holes sooner than later should be at the top of a company’s to-do list.


Tags: Anti-BriberyAnti-Corruption
Previous Post

The Global (Mis)alignment of Human Rights Sanctions

Next Post

How Small Financial Institutions Need to Handle ESG — Today and Tomorrow

Jag Lamba

Jag Lamba

Jag Lamba is the founder and CEO of Certa, a third-party lifecycle management platform for procurement, compliance and ESG. Certa is backed by Techstars and top global VCs. A Wharton and McKinsey alum, Jag lives in Saratoga, Calif., and loves hiking and playing soccer with his son.

Related Posts

Hogan Lovells Global Corruption Outlook 2023_f

Global Bribery and Corruption Outlook 2023

by Corporate Compliance Insights
February 16, 2023

What's to come this year? Demands for heightened oversight of employees, subsidiaries and third parties 2023 Update Global Bribery and...

hottest takes

The Hottest Compliance Takes of 2022

by Staff and Wire Reports
December 14, 2022

Nobody was canceled for anything they wrote for our pages in 2022 — at least that we know of. But...

brazil election

Win-Lose Situation: No Matter Outcome of Brazilian Presidential Election, Corruption Wins (and Everyone Else Loses)

by M. Victoria Abut
October 12, 2022

Brazil’s presidential contest will head to a two-man runoff election later this month, but if any observers had hopes for...

greenwashing pollution

SEC Is Pushing Back Against Greenwashing; Bribery, Corruption Investigations Provide Valuable ESG Lessons

by FTI Consulting
August 10, 2022

Smart firms are investing in ESG programs not just to showcase their cultural bona fides but to appeal to consumers...

Next Post
esg small banks

How Small Financial Institutions Need to Handle ESG — Today and Tomorrow

Compliance Job Interview Q&A

Jump to a Topic

AML Anti-Bribery Anti-Corruption Artificial Intelligence (AI) Automation Banking Board of Directors Board Risk Oversight Business Continuity Planning California Consumer Privacy Act (CCPA) Code of Conduct Communications Management Corporate Culture COVID-19 Cryptocurrency Culture of Ethics Cybercrime Cyber Risk Data Analytics Data Breach Data Governance DOJ Download Due Diligence Enterprise Risk Management (ERM) ESG FCPA Enforcement Actions Financial Crime Financial Crimes Enforcement Network (FinCEN) GDPR HIPAA Know Your Customer (KYC) Machine Learning Monitoring RegTech Reputation Risk Risk Assessment SEC Social Media Risk Supply Chain Technology Third Party Risk Management Tone at the Top Training Whistleblowing
No Result
View All Result

Privacy Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2022 Corporate Compliance Insights

No Result
View All Result
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe

© 2022 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT