The purpose of implementing the compliance system is to create effective mechanisms in the organization for identifying and analyzing corruption-dangerous areas of activity, assessing and managing legal and financial risks in the event of corruption relations, providing comprehensive protection of the organization from a variety of legal, tax, economic, reputational, sanctions and other threats.
The regulatory environment is a set of interacting regulatory regulators in the field of combating corruption and combating money laundering obtained by illegal means.
Three main blocks of regulations:
a)Foreign legislation (of an extraterritorial nature).
b)International legislation (conventions that have been ratified by Kazakhstan).
c)Legislation of Kazakhstan, including laws and regulations.
Due to the extraterritorial (cross-border) nature of legislation in the field of compliance, anti-money laundering and countering the financing of terrorism (AML / CFT).
Examples of foreign legislation:
US Foreign Corrupt Practices Act (FCPA), 1977.
The US Foreign Account Tax Compliance Act (FATCA), January 1, 2013.
UK Bribery Act.
Article 16 of the Law of the Republic of Kazakhstan “On Combating Corruption” provides for the obligations of quasi-state organizations to establish anti-corruption compliance services and take measures to prevent corruption.
The results of the effective work of the corporate compliance system in companies are:
- a well-functioning system for detecting and preventing fraud, corruption and other threats to the company’s activities;
- prevention and minimization of financial losses, bankruptcy and sanctions applied to companies by Kazakh and foreign regulators;
- early monitoring, recognition and prevention of risks of non-compliance with regulatory requirements;
- improving the efficiency of companies and increasing their competitiveness and value;
- preservation and development of the business reputation of companies both in Kazakhstan and abroad.
- Law of the Republic of Kazakhstan “On Combating Corruption”: https://online.zakon.kz/document/?doc_id=33478302
- Methodological recommendations for organizing the institution of anti-corruption compliance in the subjects of the quasi-public sector: https://www.gov.kz/memleket/entities/anticorruption/documents/details/111688?lang=ru
- Model rules for conducting an internal analysis of corruption risks: http://adilet.zan.kz/rus/docs/V1600014441#z1
- Rules for conducting anti-corruption monitoring: http://adilet.zan.kz/rus/docs/V2000019941#z14
- Rules for conducting scientific anti-corruption expertise of draft regulatory legal acts: http://adilet.zan.kz/rus/docs/P2000000451#z12
- Materials of the International Online Forum on the Development and Promotion of Compliance in Kazakhstan dated October 29, 2020: https://www.gov.kz/memleket/entities/anticorruption/documents/details/124895?lang=ru
- The five pillars of an ethics and compliance program. Deloite: https://www2.deloitte.com/content/dam/Deloitte/ru/Documents/risk/russian/pyat-sostavlyayushchih-programmy-etiki-komplaens.pdf
- International study of the compliance function. KPMG: https://assets.kpmg/content/dam/kpmg/ru/pdf/2017/07/ru-ru-international-compliance-survey.pdf
- 10 elements of an effective compliance program. FCPA: https://xco.news/analytic/2018/08/08/10-elementov-effektivnoi-komplaens-programmy
- Compliance practice as a preventive method of fighting corruption. Antonina V. Voloshenko: http://www.irbis-nbuv.gov.ua/cgi-bin/irbis_nbuv/cgiirbis_64.exe?C21COM=2&I21DBN=UJRN&P21DBN=UJRN&IMAGE_FILE_DOWNLOAD=1&Image_file_name=PDF/ape_2014_7_50.pdf
- Current issues in the field of compliance. Rödl & Partner: https://www.roedl.net/fileadmin/user_upload/Roedl_Russia/Leitfaden/Leitfaden_Compliance_ru_2020_01.pdf
- Anti-corruption compliance: ISO 37001 international standard: https://www.gov.kz/memleket/entities/anticorruption/press/news/details/128904?lang=ru
- National Anti-Corruption Report 2020: https://www.gov.kz/memleket/entities/anticorruption/documents/details/152774?lang=ru
- Research “Development of systemic measures to prevent conflicts of interest”: https://www.astanacivilservicehub.org/uploads/research_pdf/research%20project/4_Rus.pdf