Your compliance program should be tested against the requirements of the Federal Sentencing Guidelines. This would include:
- Does your business promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law? We can assist in evaluating the current corporate culture, and providing guidance on how to create or improve a culture of compliance.
- Are there established standards and procedures to prevent and detect criminal conduct? We can assist in developing policies to address risks, and programs to implement the policies.
- Is the board of directors knowledgeable about the content and operation of the compliance and ethics program? Does it exercise reasonable oversight over the implementation and effectiveness of the program? We can assist in setting up a structure to advise the board (or a board committee) on the compliance program.
- Has senior management taken responsibility to ensure that the organization has an effective compliance and ethics program? Does a senior officer have overall responsibility for the program?
- Is management knowledgeable about the content and operation of the compliance and ethics program? Do all managers perform their assigned duties consistent with the exercise of due diligence?
- Are specific individual(s) within the organization given day-to-day operational responsibility for the compliance and ethics program? Do they report periodically to senior management and to the board on the effectiveness of the compliance and ethics program?
- Do these individual(s) have adequate resources, appropriate authority, and direct access to the board?
- Are there procedures in place so that nobody is hired for a management position who has engaged in illegal activities or other conduct inconsistent with an effective compliance and ethics program?
- Does the organization communicate its standards and proceduresto members of the board, all levels of management, and the organization’s employees? Are agents of the corporation included? Is the compliance training effective? Is the training appropriate to an individual’s respective role and responsibility?
- Does the organization employ monitoring and auditing to detect criminal conduct?
- Does the organization evaluate periodically the effectiveness of the compliance and ethics program?
- Has a system been established that allows employees to report wrongdoing anonymously? Can employees do so without fear of retaliation?
- Is the compliance program promoted through the use of incentives? Is it enforced consistently with appropriate disciplinary measures that cover both engaging in criminal conduct and failing to take reasonable steps to prevent or detect criminal conduct?
- Does the organization respond appropriately after criminal conduct has been detected? Are changes made to the organization’s compliance and ethics program where necessary? We can help with “after-action” reviews designed to address weaknesses in the current program.
- Does the organization periodically assess the risk of criminal conduct? Based on the risk assessment, did it implement an appropriate compliance program? We can assist with the risk assessment, and program design in response to the findings of the assessment.
- Is there a mechanism in place so that the individual with operational responsibility for the program can promptly report directly to the board if there is a problem involving management?
Foreign Corrupt Practices Act (FCPA)
- Evaluation of effectiveness of program in locations outside of US, particularly those that may be subject to the U.K. Bribery Act
- Review of company policies regarding gifts and interactions with government officials, communications materials, training
- Development of due diligence and integration protocols for foreign acquisitions, joint ventures, focused on improper payments
- Review of anti-money-laundering procedures and “know your customer” rules