Proper compliance is a necessity today, a kind of “criminal policy”. That said, limiting the scope of Compliance to the criminal field is simply wrong. When we talk about Compliance, we are talking about a new business standard and a new way of doing business. It is the key that opens the doors to the international market.
It must be understood that Compliance is much more than a criminal defense or mitigation, it is a filter for international business. The international environment is moving towards strengthening compliance programs, improving corporate governance and towards Compliance culture. This can be seen in key documents such as ISO (International Organization for Standardization) 37301:2021 on Compliance Management Systems, the World Bank Group’s Integrity Compliance Guidelines, or the Evaluation of Corporate Compliance Programs and A Resource Guide to the U.S. Foreign Corrupt Practices Act, both released by the United States Department of Justice, the latter prepared in conjunction with the United States Securities and Exchange Commission.
They not only establish technical standards to structure compliance programs but also put the onus on companies to actively supervise their partners, suppliers and third parties, by integrating control and due diligence as an essential part of their management model. While this does not mean that it is mandatory for third parties to have their own compliance program, we can but wonder what foreign companies would prefer: to carry out an arduous, in-depth, ongoing review of the third parties with whom they interact, or contract with a company with its own compliance plan.
The reality is that Compliance will become an essential part of due diligence processes, and, in many cases, may be the determining factor in deciding which company to enter into a business relationship with. This responds to the strategic value provided by a solid compliance program, which strengthens corporate reputation and reduces uncertainty around risk management. In addition, it optimizes and standardizes internal processes, increases operational efficiency, and strengthens the negotiating position vis-à-vis investors, banks, and potential acquirers. Consequently, it facilitates access to capital under more competitive conditions as well as positioning the organization as a reliable strategic partner in both national and international markets.
So, a solid compliance program must be designed according to the operational reality of each company. Replicating external models that respond to other risks and weaknesses is ineffective. Without a doubt, when structuring any compliance plan, it must be based on a serious, documented risk map focused on effective mitigation. This is the only way Compliance ceases to be a formality and becomes a true strategic advantage for the organization.
A compliance plan strategically tailored to meet the needs of the company is just the starting point to good Corporate Governance and ensuring the effectiveness of the program. When talking about Compliance, it must be understood that we are not talking about an isolated department; the commitment must be comprehensive. The various management and supervisory positions within the company must be involved and have the support of the Board of Directors. When we talk about Compliance, we are not talking about just another department within the organizational chart; it is not an isolated area that works in parallel to the rest of the company. The commitment must be transversal, that is, all directions and levels of supervision must be involved, and that involvement must have full support of the Board of Directors.
In addition, those responsible for designing, implementing, and overseeing the program must be able to act independently. If the compliance officer lacks autonomy or is subject to internal pressures, the program loses objectivity and, consequently, effectiveness.
However, once the plan has been designed according to the reality of the company and implemented at all levels, the truly demanding part begins, namely, monitoring. A compliance program cannot remain on paper. It must be constantly monitored, its functionality assessed, and adjusted when weaknesses, excessive controls or mechanisms are detected that in practice are not working as they should.
These reviews cannot be sporadic. They require periodic analyses that allow the program to be adapted to regulatory changes, new operations, or international requirements. What is sufficient today may not be sufficient tomorrow.
Furthermore, everything must be documented. We are not talking about isolated training or good intentions. It is a structured, written, accessible model, whose results can be demonstrated through reports, reviews, and duly recorded modifications. In a due diligence process, what is not documented simply does not exist.
Today, Compliance is already part of the institutional architecture of any organization that aspires to compete seriously. It is not a regulatory fad or a short-term reaction, it is a transformation in the way the market assesses companies and in an increasingly competitive and globalized environment, the difference between advancing or remaining on the sidelines may lie precisely in the solidity of that structure.
Source:
