Laura Muñoz, teacher "Compliance specialties: pharmaceutical sector, insurance, public sector and others” in the master's degree in Compliance & Data Protection Directorate of the EIP International Business School wanted to share with us the following post:
Companies, in order to develop their business, maintain relationships with counterparties. Have you ever thought about the multitude of counterparties you interact with in order to provide your services? Among some we can highlight suppliers, subcontractors, legal advisors, tax advisors or even colleagues from the sector with whom we develop a common project, without forgetting the employees themselves.
Why is it important to analyze counterparties?
Most companies do not appreciate the risk they take when performing any type of contract, whether labor or professional, delegation of a service or subcontracting of employees. Placing trust in a third party is the basis for an effective relationship, but first, you should review who you are placing that trust in. In other words, we should review who we are opening the doors of our project to so that they become part of it.
The first question we can ask ourselves is the following: is it mandatory to establish measures to know who our counterparts are?
The answer is that, although it is not mandatory, and this is a reality, experts in the field of regulatory compliance recommend in all cases establishing a criminal offense prevention program.
And why would an employer allocate economic resources to develop a control that is not mandatory by law?
The key is prevention
Implementing a preventive Compliance program is not the same as a reactive one, that is, when the crime has already been committed and society is being investigated for the possible commission, or connection, with a criminal offense.
And what is the relationship between establishing control over counterparties and a Criminal Compliance program?
The Criminal Compliance program consists of establishing a series of necessary measures and controls so that all those who may have a relationship with society, direct or indirect, cannot use it to commit a crime.
Establishing a single procedure for counterparties may be excessive in many cases, for example, in those cases in which the company does not maintain continuous links with them. In these cases, the recommendation is to mention it in the document itself. Ethical code of the company, indicating the need for counterparties who wish to maintain active contact must comply in all cases with the Code of Ethics itself.
The implementation of a Criminal Compliance program is not a mere common model for all societies. This is specific and concrete, where the risks to which society is subject will be assessed, and which, if committed, will have a greater impact on the company.
It is true that not all crimes in the Penal Code can be imputable to the legal entity, but a broad list, among which we find the corruption, bribery, money laundering, among others.
For this reason, it is essential to put yourself in the hands of professionals who analyze in detail society, its risks and the measures in place at that time. The need or not to establish new control measures to reduce these possible risks will be evaluated.
And what happens if I am the counterparty?
Many companies, both national and international, are demanding that their counterparts develop a crime prevention program, or at least a Code of Ethics to maintain active ties.
This leads us to conclude that Criminal Compliance, without being mandatory today, is a reality in our country that is increasingly gaining popularity and that, whether we are a counterpart or choose our own, we must maintain these control measures to that the company cannot be used for the commission of a crime.
Do you want to specialize in Compliance Management and data protection?
He Master in Compliance & Data Protection Management will make you a highly qualified professional with the necessary skills to carry out specialized tasks in two of the most relevant areas for both private businesses as for public administrations: data protection and regulatory compliance or Compliance.
