ETERNA LAW describes key compliance priorities for companies that operate in Ukraine for 2022
5 Regulatory & Compliance Risks That Will Matter in 2022:
– Based on statistics of the Association of Certified Fraud Examiners organizations globally lose 5% of revenue to fraud each year. The median loss per case is $ 125 000. We recommend checking out if your anti-fraud controls really work;
– If your company conducts business globally there is a high chance that it has to comply with the US or UK anticorruption laws in the Ukrainian operations as well. The biggest fine for the violation of the US FCPA reached $ 3.5 bln. One of the key requirements that are common to both US and UK legal regimes is to maintain a corporate compliance program. We recommend finding out if you have a compliance program that covers Ukrainian business;
– A whistleblower (i.e. the Ukrainian citizen) that tips the US authorities about corruption cases related to the business of the multinational corporation in Ukraine has a right in certain cases to get awarded by up to 30 % of imposed fine. Several whistleblower cases have originated from Ukraine already. We recommend implementing an effective whistleblower management system to mitigate investigations risks;
– Per the Ukrainian/the US/the UK anticorruption laws in certain cases the company is expected to maintain assessment of its anticorruption program. Based on international experts’ evaluation this is something that the majority of companies in Ukraine are not doing. In 2022 the experts’ community plans to draw the attention of the general public and enforcement agencies to this violation. We recommend conducting assessment of your anti-bribery compliance program in 2022;
– To ensure effective sanctions compliance companies are expected to implement respective measures that should meet the Western standards. We recommend finding out if your sanctions compliance program meets the respective regulators’ expectations.
To learn more about solutions in anti-bribery compliance, ethics, antifraud, and sanctions please feel free to approach Timur Khasanov-Batirov via email khasanov-batirov@eterna.law or per phone +38 044 490 7001.
