Effective organisational compliance

The current US rules and how they are implemented in an organisation: Part II

by Jörg Orgeldinger PhD

The second part of this series (for Part I, see Financial Regulation International, Volume 26 Issue 5, p 3) delves into the essential components of effective organisational compliance, encompassing concepts, considerations, and strategies for risk assessment and compliance management. Compliance extends beyond mere prevention of issues and ensuring regulatory compliance - it also highlights the positive impact of a strong and ethical compliance programme on a company or organisation. The first section in this commentary emphasises the influence of human psychology in establishing a culture of compliance, exploring drivers, attention-grabbing techniques, distractions, and their contributions to fostering a firm belief in corporate compliance. It reviews formal compliance programmes and addresses practical aspects of their implementation, including technologies, workflows, policies, monitoring and training. Furthermore, it examines the complex landscape of data protection requirements, emphasising the importance of understanding data protection laws and safeguarding personal information. The role of international and state laws, as well as the Federal Trade Commission (FTC), in privacy protection is discussed. Additionally, the article provides a comprehensive understanding of corruption, its manifestations, impact, and the evolution of anti-corruption laws. It presents practical strategies for creating compliance policies and procedures to combat and prevent corruption, highlighting key legislation such as the US Foreign Corrupt Practices Act, the UK Bribery Act, and other anti-corruption laws. The article also outlines preventive measures within organisations and mechanisms for detecting warning signs of corruption.