Compliance and Anticorruption in Russia and CIS, 29-30 June 2017

DAY 1: WEDNESDAY, 28 JUNE 2017

COMPLIANCE & ANTICORRUPTION IN RUSSIA AND CIS: STATUS 2017 

• Russian and international anti-corruption legislation
• Compliance track in Russia; Western trends and the effect.
• Adapting universal approach to anti-corruption compliance program efficiency assessment to corporate specifics and needs
• Regulatory enforcement

Real-life experience in creating efficient compliance service, DAIMLER KAMAZ RUS Company 

• Key compliance-defining regulations
• Preventive control and corporate compliance procedure automation goals
• Creating compliance service from “scratch” and main challenges
• Compliance service place in the company structure; the service interaction with other departments and business units
• Compliance role in Company: From consultancy to ‘Veto’

Compliance culture development and promotion as an effective way to manage corporate corruption risks 

• Ways to create and develop corporate compliance culture meeting controllers’ expectations.
• Engaging employees to use consulting, informing, and complaint tools as a part of corporate compliance culture development 
• Local challenges in creating efficient Russian and CIS compliance culture
• Developed compliance culture indicators

Case Studies: Practical implementations of 10 compliance program directions

Ilsur Akhmetshin, compliance director

Vimpelcom

Julia Glubokaya, deputy compliance director

Vimpelcom

1. Top management commitment. Does the Company top management fully support corporate policy related to anti-corruption legislation and Code of Conduct? 

2. Policies and procedures. Does the Company have in place the policies and procedures aimed at preventing corruption cases? Is there efficient internal control system in place?

3. Regular risk assessment. Do you regularly review the corruption risks with respect of your Company specifics? Do you annually update the anti-corruption policy, incorporating the industry best practices?

4. Adequate control and independence. Do you have an appointed top manager who is independent from managers, reports to Board of Director and is responsible for anti-corruption policy and code of conduct implementation control? 

5. Training and directives. Are there any tools to adequately inform all types of employees (and third parties when needed) on the Corporate anti-corruption policy and code of conduct (including training and corporate policy compliance certification)? Is there a way for employees or third parties to request instructions on compliance with anti-corruption legislation?

6. Informing on violations and internal investigation. Do you have efficient corporate system to submit information (in confidential manner as well) on any violation of corporate anti-corruption policy and Code of Conduct? Do you have any procedure in place for subsequent internal investigation and registration of the results? Do you have an adequate informer protection in place?

7. Execution and implementation of enforcement actions. Do you have any tools in place to insure adequate execution of corporate anti-corruption policy and Code of Conduct? Do you have a system of enforcement actions to violators regardless of their position and job title in the Company? Do you take any measures to settle down the identified violations as well as to prevent them for reoccurring in the future?

8. Relations to third parties. Do you perform contractor and business partner due diligence? Do you include anti-corruption disclaimer in your agreements with partners and contractors?

9. Mergers and acquisitions. Do you have a corporate merger and acquisition policy? Do you require due diligence of the new enterprises including the assessment of corruption risks? Do you insure the merged and/or acquired company accepts and complies with your corporate policies and procedures? Do you render any training on anti-corruption policy for all types of employees? Do you perform dedicated anti-corruption audit when required?

10. Regular control and testing. Do you assess and test the corporate Code of Conduct, compliance policies and procedures to insure they effectively prevent and/or identify the violations of anti-corruption legislation and internal corporate policies? Do you implement the most recent best practices and new industry standards?

Recovering misappropriated assets: methodology and grounds 

• Factors to consider in asset recovery
• Asset recovery toolbox (civil recovery; criminal complaint; out-of-court methods, such as insurance)
• Asset tracing in Russia, Europe, UK, USA and offshore jurisdictions

Compliance risk management for lawyers: Legal department role 

• Different ways to create compliance service
• Compliance risk management system: FMCG Company case study
• Legal Department role in compliance risk management - leaders or invited experts?

Preparing for inspections by controlling and supervising authorities 

• Russian legislation related to inspections
• Grounds for inspection and other procedures performed by the controlling and supervising authorities
• Minimizing risks of surprise inspection
• Employees’ actions to minimize negative consequences of controlling authority members visit
• Order of appeal against the controlling authority inspection results

The further actions after having established the act of fraud and conducted an internal investigation. How to punish the liable and compensate the material damage. The consequences of conducting an internal investigation

• The variety of employees’ liability (disciplinary, administrative, criminal, civil law). The methods and opportunities for attractions.
• The best legal practice for bringing the perpetrators to justice (dismissal, indemnification) under the conditions of a contemporary reality and the imperfection of the Russian legislation.
• Public punishment: solve the issue “quietly” and not attract negative attention to the company or demonstrate integrity in preventing fraud in the company in the future

The specificity of conducting due diligence procedures in relation to third parties: What to focus on – types, risks, specialities, methods and practice 

• Explaining the different types of third parties (suppliers, clients) and the specificity of cooperation.
• The fields of risk: the details that are not inherent to standard procedures; diagnostic methods and extended Due Diligence
• FCPA vs local legislation

• What are fraud and corruption? Types and definitions
• Goals and tasks of internal control
• The most vulnerable directions of business
• Principles and approaches in the sphere of antifraud and anti-corruption practices
• Building and function of internal control system
• Practical examples of results of specific control schemes implementation

• Analyzing contractor’s business and company type; assessing compliance risks, commercial, and tax risks manageability
• Anti-corruption monitoring of existing contractors; factors affecting the due diligence extent
• Resolving conflicts of different legal frameworks; stipulation of contractual rights and obligations.
• Valuation of company solvency and ability to fully execute all contractual obligations and liabilities

• Internal investigation triggers: audit, hotline reports, whistleblowers
• Internal investigation procedures and stages, statutory documents
• Defining the responsibility area of corporate departments (Legal Department, Compliance Department, HR, Security Department) and external consultant during the internal investigation process
• Investigation Commission composition and work principles
• Interview as the key tool in investigation process: rights and limitations
• Using data from security systems as well as software to gather evidences on information media
• Making a legally correct Internal Investigation Statement; taking measures based on its results

• Collecting and organizing large volume of data for control operations
• From dynamic PowerPivot tables to machine learning: using analytical models in audit and compliance
• Improving employees’ awareness and making compliance trainings more effective

• UK BA and FCPA anti-corruption compliance and local legal requirements
• Anti-corruption Code of Conduct
• Code of Conduct in Russia and CIS: Dos and Don’ts
• Defining the line between acceptable and traditional hospitality standard and corruption “zero tolerance”

• Compliance - Corporate Norms - METRO Corporate culture base
• Structure of Corporate Norms Compliance department - features and optimal settings
• Key requirements specification and detail - policies and procedures
• Main forms of Corporate Norms promotion in METRO: informing, training, sustaining
• Corporate norms violation investigation specifics
• Assessing the risks of Corporate Norms violation in METRO; preventive measures to minimize the risks
• Top Manager's participation - “Tone from above”
• Feedback
• Challenges and directions for further development of Corporate Norms system in METRO

• What is the definition of “Conflict of Interest” in a commercial organization?
• What are the main signs and types of “Conflict of Interest” in a company?
• How can “Conflict of Interest” have a negative influence on business success in modern times?
• What are the methods for identifying and regulating “Conflict of Interest”?
• How to prevent “Conflict of Interest”?
• Using legislative regulation to manage “Conflict of Interest”
• How to probe your potential business partners to identify interrelated connections with the company’s own employees
• The process of organizing the declaration of “Conflict of Interest”

• Internal procedures and processes specification: the way it works in real life
• Control procedures and risks ranking based on their effect on the final result of every business process and overall company operation.
• Creation, operation, and verification of internal control system in relation to tender fraud prevention
• Distribution of management and controlling bodies roles in Internal Control System improvement
• Identifying Internal Control System bottlenecks, developing recommendations, related risks analysis
• Cases of Management participation in the Internal Control System of the company

• Fulfilling anti-corruption standards in procurement when disclosing chain of ownership, beneficiaries, and contractors.
• Compliance control at initial, current, and post procurement stage
• Compliance procedures to generate fair competition, public and transparent procurement, and prevent corruption
• Restrictions to internal and external contractors
• Corporate procurement centralization and decentralization: Benefits and risks
• Agreed trades: competition law vs. procurement legislation

• Ensuring the compliance efficiency by informing the employees on the department role in the company life
• Perception by the employees of compliance function and its role in the company
• Motivating employees and assessing their efficiency
• Ways of making employees loyal.
• Technologies for creating training system
• Training efficiency assessment criteria; using feedback from the employees

• Information sources on violations - hotline, information from responsible departments, document flow analysis
• Committee acting as a “judicial” and “supervising” body. Different approaches to Committee's role
• Cooperation of related departments during investigation and actual implementation of the Committee’s resolutions

• How to execute an independent scrutiny for the effectiveness  of an anticorruption compliance programme
• Complex third-party due diligence and the carrying out of payments to third party intermediaries
• The «Hotline» for informing about violations and the presence of an internal investigation procedure
• A systematic analysis for verifying the effectiveness of an anticorruption compliance programme for continuous amelioration.
• Testing compliance for various requirements of the anticorruption  compliance programme
• Auditing the operational effectiveness of the controlled procedures directed at preventing corporate fraud

• Goals for sales policy
• Federal Anti-Monopoly Service requirements to the sales policy
• Sales policy price and non-price criteria as a part of contractors’ interaction system
• Policy to a group of people

• Efficient and competent staff management and compliance in order to prevent liability on the part of the company's management and officials
• Rights and obligations of employees during internal inspections and investigations
• The practice of imposing disciplinary measures against a company's employees who committed an offence
• Determining the sufficiency of evidence to remove an employee from office based on signs of fraud or corruption and methods of evidence collection
• Special issues when it comes to firing employees who had access to confidential information, actions to be taken, and creating the correct documentation