Natalia Chi
The role of the compliance professional and compliance function in a company has grown steadily in stature and prestige over the years. Regarding the corporate compliance function, the FCPA’s 2020 Resource Guide, under characteristics of an effective compliance program, noted that the government would “consider whether the business has dedicated adequate staff and resources to the compliance program , given the size, structure and risk profile of the firm”. The Monaco Memo and the 2023 amendments to the Corporate Enforcement Policy have See more +
This hallmark was significantly expanded in the FCPA’s Corporate Enforcement Policy and 2020 Update. In the FCPA’s Corporate Enforcement Policy, the DOJ listed the following as factors related to a corporate compliance function that it would consider to indicate an effective compliance and ethics program: 1) the resources the company has dedicated to compliance; 2) the quality and experience of personnel involved in compliance, such that they can understand and identify transactions and activities that involve a potential risk; 3) the authority and independence of the compliance function and the availability of compliance experts on the board; 4) the remuneration and promotion of personnel involved in compliance, taking into account their role, responsibilities, performance and other appropriate factors; and 5) the reporting structure of all company-employed or contracted compliance personnel.
The 2020 Update, the Monaco Memo, and the 2023 Corporate Enforcement Policy update all demonstrate the ongoing evolution in DOJ thinking regarding the corporate compliance function. Their nuanced requests can only specifically enforce a corporate compliance function; and the compliance profession more generally. The more the DOJ talks about the independence of the compliance function, coupled with the resources made available and the authority concurrent with the corporate compliance function, the more companies will see that it is directly in their interest to provide the resources, authority and severity to the position compliance in their organizations.
Three key points:
1. How is compliance addressed in the budget process?
2. Has your compliance function had decisions reversed by senior management?
3. Beware of compliance outsourcing, as any such contractor must have access to company documents and personnel. See less –
