Adopting proper internal measures in order to be prepared to meet Subject Entities’ expectations with respect to their FACL compliance programs may give a serious advantage over their competitors and the resulting economic benefits to those Local Partners interested to conduct business with or seek to be acquired by Subject Entities. A Local Partner can gain the edge and prepare to meet FACL compliance expectations of Subject Entities by adopting and implementing themselves FACL compliance steps and practices, which would include:
- Adopting, implementing and maintaining clear and simple anti-corruption policies that can be understood and applied by every employee within the Local Partner’s organization. The adoption of a “zero tolerance” policy to any form of bribery is critical. The application of these policies should start and be encouraged by the senior management which, at the same time, should supervise such policies in its application by the employees. Additionally, engaging outside legal consultants in order to prepare effective anti-corruption policies along with anti-corruption procedures, suitable for the specific situation of the Local Partner according to its needs, the industry in which it evolves and the area where it is located is highly advisable.
- Conducting rigorous background checks of its own employees and prospective employees and agents to ensure individuals within the organization or who act on its behalf had not acted against in a manner inconsistent with FACL in the past;
- Adopting and implementing regular training programs for employees on anti-corruption/bribery compliance practices and require annual certification by each employee of his or her compliance with anti-corruption/ bribery policies;
- Ensuring proper internal controls, record keeping and accounting practices are in place, especially when it comes to expenses, payments and benefits procured to third parties on behalf of the Subject Entities or as part of the services performed for the Subject Entities;
- Assessing the relationships of the members of its organization with governments, public officials and politicians to ensure such relations are conducted in compliance with the FACL’s principles. Be transparent and coherent in its communications and relationships with governments, public officials and politicians and be able to demonstrate the highest level of ethical behaviour when dealing with such persons. The discovery of undisclosed relationships between the Local Partner and governments, public officials or politicians will alarm any Subject Entities such Local Partner is dealing with.
- Establishing a monitoring process to control the effective application of anti-corruption/bribery policies and procedures adopted by Local Partners.
- With respect to a business that expects to be an M&A target of a Subject Entity, as it will be subjected to a detailed due diligence process regarding anti-corruption and bribery, it should be ready to set up and maintain an organized data base containing documentation related to anti-corruption/bribery compliance. Accordingly, sensitive information related to target’s accounting, third parties/intermediaries/agents involved in the company’s activities and participation of government agencies should be recorded and kept organized.