by Juan Manuel González | Oct 14, 2024 | Noticias-en, Opinions
In the context of a large multinational corporation, implementing a compliance ambassador program is essential to ensure integrity, ethics and compliance across all of its global operations. This article explores the importance of this program, highlighting the need for capillarity and the main tasks that ambassadors perform.
Involving employees in a voluntary participation process, with the approval of leaders, brings them closer and makes them feel part of the Compliance area.
In addition, ambassadors know the best way to communicate with their areas and contribute significant improvements to the Compliance processes, whether by resolving more specific queries and referrals from their colleagues, or by proposing personalized training or even changes to Guidelines and Procedures.
Compliance Ambassadors play a crucial role in promoting an environment of ethics and integrity. Their main tasks include:
1. Education and Training: Propose training sessions on compliance policies, code of conduct and best practices, ensuring that all employees understand their responsibilities.
2. Support for inquiries and requests: Serve as points of contact for compliance issues, promoting open dialogue and disseminating relevant information on ethical practices.
3. Disclosure and Engagement: Monitor and disseminate compliance activities in their areas, involving their colleagues and providing feedback and opportunities for improvement to the Compliance area.
Importance of capillarity
In large corporations, cultural diversity and the variety of local regulations require an approach adapted to regional realities. Therefore, capillarity in a compliance program is extremely important to map the needs and different forms of communication with all areas and levels of the organization, from headquarters to operational areas.
The presence of Compliance Ambassadors in various areas and levels of the company helps to:
1. Reinforce everyone’s responsibility: With ambassadors in different regions, we reinforce daily that the responsibility of maintaining an ethical and safe environment must be shared among all employees.
2. Bring Compliance closer to the business: A compliance ambassador program acts as a link between the Compliance area and the Company’s employees, promoting a culture of ethics and compliance.
3. Employee commitment: The presence of ambassadors in different areas creates an environment where employees feel more comfortable discussing concerns and reporting irregularities.
Conclusion
A compliance ambassador program is vital to the success of large multinational corporations. Through the proactive actions and reach of ambassadors, it is possible to create an organizational culture that values ethics and compliance. This not only minimizes legal and reputational risks, but also strengthens trust between employees, customers and stakeholders, positioning the company as a leader in corporate responsibility at a global level.
By Victor Alota I. Pereira, Compliance Specialist at Braskem.
by Juan Manuel González | Oct 3, 2024 | Noticias-en, Opinions
On September 26, the regulations governing the supervision of legal entities , in accordance with the provisions of the Law on Economic Crimes , were published in the Official Journal .
Among the most relevant modifications, the figure of supervision of the legal entity was incorporated , which can be ordered by a court as a penalty, precautionary measure or condition of a conditional suspension of the procedure.
In addition, it seeks to ensure that companies that are part of the proceedings establish an effective system for preventing economic crimes.
Among the most relevant aspects for the application of this regulation, there are several elements that are key to the effective functioning of the supervision system for legal entities.
Below we mention the following:
- Definition of supervision of legal person: According to the regulation, supervision of the legal person consists of “ subject to a supervisor, appointed by the court, responsible for ensuring that the legal person effectively develops, implements or improves a crime prevention system within a minimum period of six months and a maximum of two years . ”
- General requirements for the application of the legal entity: The court will appoint a supervisor in those cases where it is determined that the legal entity does not have a crime prevention system , or said system is insufficient to prevent crimes.
- Obligations: The legal entity shall be obliged to make available to the supervisor all the information necessary for the performance of the assignment, including allowing access to its facilities and premises.
In addition, he/she shall be obliged to comply with the instructions given by the supervisor in the development, implementation, improvement or control of the operation of the crime prevention system.
Regarding the role of the supervisor , several key aspects stand out that are fundamental to understanding his role and responsibility within the supervision system of legal entities, among which the following stand out:
- Qualifying requirements to hold the position: The supervisor must be a natural person who meets certain requirements such as:
- Have a relevant professional qualification (professional degree of at least ten semesters in duration).
- At least five years of verifiable experience.
- Knowledge of risk management and crime prevention, and experience in the applicable legal framework.
- In addition, the director must ensure that there are no conflicts of interest or prohibitions or disqualifications that affect the exercise of his or her duties.
- Powers and duties of the supervisor:
- It may issue instructions and set conditions on the legal entity’s crime prevention system, as determined by the court.
- You have the right to access information, facilities and interview personnel necessary to perform your duties.
- Its actions are limited to the prevention of crimes, and it must maintain confidentiality regarding the information obtained, except in public reports.
- In addition, he is considered a public employee for the purposes of his responsibilities.
- Supervisor’s remuneration: The supervisor’s remuneration will be determined by the court according to market criteria and will be the responsibility of the company.
This remuneration will cover all expenses and fees related to supervision, including those of his team.
Candidates will propose their compensation at the appointment hearing, taking into account factors such as the size and complexity of the legal entity, as well as the compensation of similar supervisors and other relevant positions.
For more information on the application of this regulation, we recommend consulting our Compliance group :
Rodrigo Albagli | Partner | ralbagli@az.cl
Yoab Bitran | Compliance group director | ybitran@az.cl
Caterina Ravera | Senior Associate | cravera@az.cl
Sebastian Achondo | Associate | sachondo@az.cl
Loreto Osorio | Associate | losorio@az.cl
by Juan Manuel González | Sep 27, 2024 | Noticias-en, Opinions
SBS Resolution No. 02648-2024, a crucial regulation for the prevention of money laundering and terrorist financing (LAFT) applicable to Virtual Asset Service Providers (PSAV), was published.
Importance
This resolution is especially relevant for those operating in the virtual assets (cryptocurrencies) market, ensuring that their activities are carried out within a regulatory framework that minimizes risks and promotes transparency.
Scope and Reach
As of July 2023, PSAVs were incorporated as subjects required to report to the UIF-Peru through DS No. 006-2023-JUS.
Now, with this resolution, specific rules are established that will regulate the LAFT Prevention System for all PSAVs domiciled or incorporated in Peru.
What are PSAVs and what activities do they perform?
Virtual Asset Service Providers (VASPs) are entities that facilitate transactions and services related to virtual assets, such as cryptocurrencies (Bitcoin, Ethereum, and others). According to Article 2 of the resolution, VASPs can carry out activities such as:
- Exchange between virtual assets and fiat or legal tender currency.
- Exchange between one or more forms of virtual assets.
- Transfer of virtual assets.
- Custody and/or administration of virtual assets or instruments that allow control over them.
- Participation and provision of financial services related to an issuer’s offering and/or sale of a virtual asset
Obligations of the PSAV
- The PSAV must implement a system for the prevention of money laundering and tax evasion (SPLAFT) by managing the risks to which it is exposed. This includes appropriate policies and procedures for knowing its customers, identifying unusual transactions and ensuring employee training.
- PSAVs must register with the Financial Intelligence Unit (UIF-Peru) as SO and keep their status as obligated subjects up to date.
- In the event of ceasing their activities or modifying their regulations, PSAVs must notify the UIF-Peru within 30 days.
- PSAVs must comply with specific due diligence requirements to know their customers and report suspicious transactions.
Validity:
- The regulation came into force on August 2, 2024.
- Chapter VIII, called “Travel Rules”, which includes specific provisions on the transfer of information in virtual asset transactions, comes into force in two years, in August 2026 .
Adaptation period:
PSAVs have a period of 120 days to adapt to the new provisions. This period is essential to implement the systems and procedures necessary to comply with the standard.
For more details or how to adapt the standard, you can contact us: compliance@cpb-abogados.com.pe
by Juan Manuel González | Apr 22, 2024 | Noticias-en, Opinions
Law 27,739 sanctioned by the Congress of the Argentine Republic has come into force, which introduces important modifications in the current legislation on the prevention and repression of Money Laundering (ML), Financing of Terrorism (FT) and Financing of the Proliferation of Weapons. Mass Destruction (FP).
These reforms, motivated by Argentina’s Fourth Mutual Evaluation Round, are aligned with international standards established by the Financial Action Task Force (FATF) and are based on the risks identified in the corresponding national evaluations.
Some of the main points on which the modification deals are:
1.- Risk-Based Approach : The new legislation also establishes the application of a Risk-Based Approach for all regulations related to Regulated Entities. This means that preventive and control measures will be adapted according to the level of risk of each entity or activity, allowing greater effectiveness in preventing money laundering.
2.- Expansion of the list of Obligated Subjects . New actors have been included such as issuers, operators and collection and payment service providers, non-financial credit providers and virtual asset service providers. In addition, a section is added on non-profit organizations, which, although they are no longer obliged to the FIU, must undergo a risk analysis to avoid the financing of terrorism. This implies establishing proportional measures to mitigate the identified risks.
Also highlighted are the categories of lawyers, who will be obligated subjects when they operate on behalf and by order of a third party in: a- purchase and sale of real estate; b- administration of goods and assets; c- management of bank, savings and securities accounts, d- organization of contributions for legal entities; e- creation, management and commercial transactions of legal entities. Public accountants and public notaries remain on the list of previously established subjects.
3.- Registration of final beneficiaries . The reform creates the Public Registry of Final Beneficiaries under the jurisdiction of the AFIP. This centralized registry will collect complete and up-to-date information on the country’s beneficial owners, providing a crucial tool to combat financial opacity and improve transparency in economic activities. In addition, the regulations introduce key definitions, such as “final beneficiary,” and expand the criminal types related to money laundering, covering environmental crimes and financing of weapons of mass destruction. Different levels of access to information are also established for public and private entities, eliminating fiscal secrecy in relation to registry data. These measures, together with the inclusion of independent professionals in the obligation to report suspicious transactions, strengthen the legal framework and promote financial integrity in Argentina.
4.- Registry of Virtual Asset Service Providers : A registry of Virtual Asset Service Providers (PSAV) is created by the National Securities Commission (CNV), with clear definitions on virtual assets and suspicious operations.
5.- New Crimes : Argentina has integrated the crime of Financing the Proliferation of Weapons of Mass Destruction into its Penal Code. This measure is added to the regulations of the Financial Information Unit and obliges Obligated Subjects to include it in their prevention programs. In addition, the scope of article 306 has been expanded, including “property or other assets” in the crime of financing terrorism.
6.- Modification of the crime of money laundering . Article 303 of the Penal Code has undergone significant changes, with the threshold of punishment being raised to 150 minimum vital and mobile salaries (no longer a fixed amount of $300,000), also incorporating the verb “acquire” as a typical action. In addition, the prison sentence in the attenuated criminal type has been replaced by a financial fine. On the other hand, article 41 quinquies has been modified to include terrorism crimes in accordance with international conventions ratified by the country. These modifications impact the measurement of punishment, integrating crimes such as financing the proliferation of weapons of mass destruction. Despite these changes, fortunately article 305 maintains its effectiveness, allowing the definitive confiscation of assets in cases of money laundering, even in situations of extinction due to prescription.
7.- Updated Sanctions : The list of sanctions to be applied by the FIU to Obligated Subjects in case of regulatory non-compliance is updated, along with adjustments to the level of penalties. The legislation now reflects recent provisions of the FIU, allowing corrective actions prior to the opening of administrative proceedings for detected irregularities. In addition, the amounts of possible fines have been increased and the option of disqualifying the Compliance Officer as a sanction has been introduced.
8.- Expansion of Powers of the FIU : Its powers are expanded to strengthen the fight against ML/TF. Now, the subjects reached will not be able to oppose banking or professional secrecy in certain cases. A risk-based internal control system will be implemented and a registry of Independent External Reviewers will be established. In addition, key information will be provided through guides and seminars to improve the detection and reporting of suspicious operations. The supervision procedures may conclude in corrective actions or administrative summaries depending on the severity of the deficiencies detected.
9.- Parliamentary Control: A new control is implemented through the Bicameral Commission for Oversight and Intelligence Activities Agencies, establishing the obligation for the FIU to appear before this commission, providing reports, opinions and advice as required.
By Diego García Austt, lawyer specializing in Economic Crimes | Compliance Latam collaborator.
by Juan Manuel González | Apr 18, 2024 | Noticias-en, Opinions
In Peru’s vibrant tourism scene, where cultural and natural wealth attracts visitors from all over the world, the hotel industry plays a crucial role. However, behind the warmth and hospitality it offers its guests, there is a vital but often underestimated aspect: compliance, understood as the culture of integrity that must govern organizations.
Compliance in the tourism sector is not only a matter of following rules and regulations imposed by the authorities, but, as we said, it is part of an organizational culture that allows building and maintaining customer trust, safeguarding the reputation of companies and, ultimately, foster an environment of fair and sustainable competition.
One of the main challenges facing the Peruvian hotel industry in terms of compliance is the need to quickly adapt to a constantly changing regulatory environment. From tax regulations to health and safety requirements, tourism-related businesses must be aware of a wide range of regulations to operate effectively and ethically.
One of these challenges is presented in its consideration as a subject obliged to have a money laundering and terrorist financing prevention system (splaft), a system that is supervised by the Financial Intelligence Unit (UIF) [ 1] .
To face this scenario, transparency and integrity are essential. Robust compliance programs must be established that address areas such as the prevention of corruption, money laundering and respect for labor rights. Additionally, ongoing staff training is essential to ensure that all employees understand and comply with established policies and procedures.
Importantly, regulatory compliance goes beyond simply following the laws. It is about promoting an organizational culture rooted in ethical principles and solid values. This involves promoting corporate responsibility and commitment to environmental and social sustainability. Companies that take a comprehensive approach to compliance not only minimize the risk of legal sanctions, but also create a competitive differentiator that resonates with increasingly aware consumers.
However, implementing and maintaining a strong compliance program is no easy task. It requires investment of time, resources and, most importantly, genuine commitment from senior management. It is essential that industry leaders recognize the strategic importance of compliance and integrate it into corporate decision making.
Additionally, given the impact of technology on the hospitality industry, companies must be attentive to the cybersecurity and data protection implications. The collection and storage of personal guest information carries great responsibility, and it is crucial that appropriate measures are implemented to protect data privacy and security.
In view of the importance of compliance in the Peruvian tourism industry, it is essential that business leaders understand its strategic value and the need to implement it in their organizations. Only through active commitment to ethical principles and legal standards will tourism companies be able to strengthen their reputation, earn the trust of their clients and remain competitive in an increasingly demanding market.
Therefore, we invite all managers in the hospitality sector to seriously consider implementing compliance in their companies as a long-term investment in the integrity and sustainability of their businesses. Adopting a culture of ethical compliance will benefit not only the company’s internal relations but also its corporate image, contributing to strengthening the growth of the tourism sector in Peru.
[1] Institution dependent on the Super Intendency of Banking and Insurance (SBS).
For more information contact:
Mario Pinatte | CPB Partner | mpinatte@cpb-abogados.com.pe
by Juan Manuel González | Apr 1, 2024 | Noticias-en, Opinions
As women in the Compliance field, we understand that gender equality is, in addition to an essential right, the fundamental basis for building a prosperous and equitable world. This approach is closely aligned with Sustainable Development Goal No. 5 (“SDG 5”) of the United Nations Global Compact, which seeks to promote gender equality and the empowerment of all women and girls in all aspects of life. .
Despite the progress made in recent decades, women and girls around the world still face significant barriers to enjoying this equality, especially in key areas such as education, healthcare, employment and participation in decision-making. political and economic decisions. The reality that comes from being exposed reflects a challenge that requires continuous commitment from all sectors of society.
In the corporate context, companies have a crucial role to play in promoting gender equality. It is not only about adopting internal policies and procedures to guarantee equal rights and employment opportunities, but also about investing in economic empowerment programs that benefit women and girls in the communities where they operate, aiming to build more inclusive work environments, fair and productive.
In accordance with SDG 5, some of the practices that companies can implement include, but are not limited to:
- Create an Equality Plan with specific commitments, measures and objectives to promote and achieve gender equality within the organization.
- Monitor and ensure that all company policies include a gender perspective and that the business culture promotes equality and integration.
- Implement procedures aimed at promoting an increase in the number of women at all levels and positions within the organization, especially in positions of responsibility and management.
- Develop a training plan on gender, which includes topics such as human rights and non-discrimination, for all departments and areas of the organization.
These actions not only meet the objectives of SDG 5, but also contribute to building a more equitable and sustainable environment for present and future generations. Additionally, they foster a more productive and enriching work environment for all employees, regardless of gender.Principle of the form.
By Lucía Rodríguez Wikman, Lawyer | CIEMSA