El Corporate Fraud & Corruption Annual Review 2016 es una publicación de Financier Worldwide, en la que se presentan las opiniones de profesionales líderes alrededor del mundo acerca de las últimas tendencias en fraude corporativo y corrupción.

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ANNUAL REVIEW
Corporate fraud & corruption
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A N N UA L R E V I E W
C O R P O R AT E F R AU D
& C O R RU P T I O N
Peru■
■ Q. To what extent are boards and senior
executives in Peru taking proactive steps to
reduce incidences of fraud and corruption
from surfacing within their company?
HUAMAN: Law 30424 and Legislative Decree
1352, which incorporate the administrative
responsibility of legal persons to act on offences of
transnational and local bribery, money laundering
and financing of terrorism, came into force in
Peru on 1 January 2018. These new measures, and
the corruption scandals related to the Lava Jato
case, have pushed the issues of compliance and
reputation protection to the top of boardroom
agendas in Peru. The legislative developments
contain provisions which may exempt companies
from responsibility if they are able to prove that a
prevention programme was implemented before
the crime was committed. The five components
of this prevention programme, which, while not
mandatory, are proactive steps that companies can
take. First, companies should appoint a compliance
officer to articulate the programme to employees.
Second, they should assess, identify and mitigate
any possible corruption and money laundering
risks. Third, they should implement a whistleblower
hotline. Fourth, they should implement staff
training and education schemes. Finally, they should
RAFAEL HUAMAN
CORNELIO
EY
Partner
+511 4114 443
rafael.huaman@pe.ey.com
Rafael Huaman Cornelio is a partner
at EY responsible for corporate
prevention, fraud investigation
and dispute resolution consulting
services. He has led projects related
to the strengthening of corporate
ethics culture, such as designing
and implementing whistleblower
programmes, designing fraud
prevention programmes and
designing corporate compliance
programmes. He has led projects
related to dispute resolution
services, having provided expert
testimony. He has conducted
complex investigations related to
fraud and irregular activities in the
corporate environment at the local
and international level, applying
computer forensic and data analysis,
and advanced in-depth interview
techniques.

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to continue to monitor the progress of the
programme.
■ Q. Have there been any significant legal
and regulatory developments relevant to
corporate fraud and corruption in Peru
over the past 12-18 months?
HUAMAN: In January 2017, a modification was
made to Law 30424 through Legislative Decree
1352, which was focused on active transnational
bribery, incorporating the crimes of money
laundering, financing of terrorism and local
bribery – both generic and specific active bribery
– related to the administrative responsibility of
legal persons. Sanctions may range from fines,
disqualifications, cancellation of licences and the
closure of companies. This regulation came into
force on 1 January 2018. Finally, on 26 April
2018, the Integrity and Fight against Corruption
National Plan was published through Supreme
Decree 044.
■ Q. When suspicions of fraud or
corruption arise within a firm, what steps
should be taken to evaluate and resolve
the potential problem?
HUAMAN: All companies should have
response procedures and protocols established
to counter suspicions of fraud or corruption.
These procedures should include establishing
an ethics committee, assessing the information
received to determine whether an investigation
is warranted, and meeting various reporting
obligations. Furthermore, based on the ethics
committee protocol, the procedures should
convoke the right persons, depending on the
suspicion, such as internal and external legal
counsel, communication or human resources.
An investigation, utilising internal or external
resources, should also be launched and the
results evaluated. Related to the investigation,
it is critical that the team identifies sources of
information, safeguards the evidence, establishes
the objective of the investigation, and determines
the internal and external communication
protocols.
■ Q. Do you believe companies are
paying enough attention to employee
awareness, such as training staff to
identify and report potential fraud and
misconduct?
PERU • RAFAEL HUAMAN CORNELIO • EY

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HUAMAN: Boards of directors and senior
management are increasingly aware of the
importance of training. The key issue, however,
is that often companies just pay ‘lip service’ to
the process. They just want to see that employees
are attending the training sessions and often
make no effort to ensure that the content of
the sessions has been fully understood by the
audience. No exams or tests are being performed
to certify that employees have internalised the
importance of the topics covered in the training.
The focus of the training sessions is often merely
to comply with the law and not provide specific
messages tailored to the audience and the level
of risk they face on a daily basis. Best practice
for some companies is to complement their
regular training sessions with training for high-
risk third parties. Finally, more companies should
implement whistleblower hotlines.
■ Q. How has the renewed focus
on encouraging and protecting
whistleblowers changed the way
companies manage and respond to reports
of potential wrongdoing?
HUAMAN: The main challenges that
companies face with this new approach are
oriented mainly toward strengthening response
capacities, in order to be better prepared to
analyse and supervise investigations through
ethics committees. A more solid investigation
will uncover evidence that could support the
response actions that the company would take,
and at the same time protect whistleblowers. In
order to encourage and protect whistleblowers,
it is important to consider how an ethics hotline
should be handled, as well as the structure of the
ethics committee and how reports received by
the committee will be managed.
■ Q. Could you outline the main fraud
and corruption risks that can emerge from
third-party relationships? In your opinion,
do firms pay sufficient attention to due
diligence at the outset of a new business
relationship?
HUAMAN: The Lava Jato case has shown that
third-party relationships are one of the main
sources of risk companies face. This situation
has reinforced the need to have a prevention
programme in place, which has, as one of its key
elements, due diligence processes to examine
high-risk third parties. The main fraud and
corruption risks that can emerge from these
relationships, for example, relate to hiring an
agent or a consultant to obtain a required licence
or permit quicker than usual, and having a
consortium of companies, over which you have
no control of who they are hiring or what they
are doing to get things ready, or hiring agents to
win a trial ‘at any cost’ in exchange for a success
fee. Companies are starting to pay attention to
these risks, and are implementing controls that
cover them.
■ Q. What advice can you offer to
companies on implementing and
maintaining a robust fraud and
corruption risk management process, with
appropriate internal controls?
HUAMAN: To implement and maintain a
robust fraud and corruption risk management
process, there are three key elements to consider.
First is the ‘tone at the top’, which is the
genuine commitment of senior management
to the process. If this process is important to
senior management, it will be important to the
rest of the organisation. Senior management

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must be involved in the main activities of the
prevention programme, through the decision-
making process, as well as speeches, emails and
formal communications. The second key point
is employee awareness. All employees should
know or be aware of the zero-tolerance policy
concerning corruption and fraud. Employees
should be trained to know the behaviours that
are expected by the company. The messages
should be permanent and communicated at all
levels of the organisation. The third point is
risk identification, evaluation and prioritisation,
which will generate ad hoc controls which
should be put in place for critical risks. These
new controls will significantly reduce the
‘opportunity’ factor for fraud and corruption.
Monitoring the programme is necessary to
follow up on the effectiveness and design of the
controls. ■
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RAFAEL HUAMAN CORNELIO
Partner
+511 4114 443
rafael.huaman@pe.ey.com
CECILIA MELZI
Partner
+511 4114 444
cecilia.melzi@pe.ey.com
www.ey.com
“ Boards of directors and senior management are
increasingly aware of the importance of training. The
key issue, however, is that often companies just pay
‘lip service’ to the process. ”
PERU • RAFAEL HUAMAN CORNELIO • EY