**Presented by Robin Singh** Common Pitfalls While Implementing an Anti-corruption Program 1. Management's today, in their hunger for success and appreciation of shareholders equity tend to forget the core essence behind the words in their vision and mission statements, corporate social responsibilities, duties towards employees, third parties etc. 2. Today companies around the world plagued with challenges associated with corruption. While strong leadership from the top is necessary. It has to be one joint effort.An Anti-corruption program success requires changes in behaviour from your senior and middle managers, employees, contractors, suppliers, and all related parties that play a part in forming a living entity. 3. This presentation describes several reasons why anti-corruption programs often fail and provides practical recommendations to strengthen and improve an anti-corruption practice that needs to be incorporated.

2. Common Pitfalls While
Implementing an Anti-
corruption Program
By Robin Singh, MSc.(Law),
MIT, CFE, CFAP
28/04/2017

3. “We believe that great
governance is at the heart
of great business, helping
to protect and promote
your reputation”.
Brian Fahey, CEO, MyComplianceOffice
advance@mycomplianceoffice.com

4. Robin Singh,
MSc.(Law), MIT, CFE, CFAP

5. Agenda
• Background
• The growing maze of laws, rules and regulations
• Anti-corruption / Bribery Framework
• Common Pitfall
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 5

6. Poll:
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 6

7. Q1: Do you have a anti-corruption
framework in place?
 Yes
 No
 Unsure
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 7

8. Background
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 8

9. Companies that have failed to win due to bribery
by the successful competitor
• Corruption remains a major
hazard in international business
• High Demand for facilitation
payments
• Among the companies with
headquarters (HQ) in Western
countries, France stands out,
with 37% of companies
reporting that they had lost out
to corrupt competitors.
INTERNATIONAL BUSINESS ATTITUDES TO CORRUPTION - 2015 / 2016 (Control
Risks)
Its all about the business
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 9

10. Companies that have failed to win due to bribery by
the successful competitor
• Overall 64% agree – out of
which 54% are from USA and
46% from rest of the world.
• While in UK, 41% believe Laws
help while 49% believe in
opposite.
• Overall 30% disagree
• Overall 6% are neutral
INTERNATIONAL BUSINESS ATTITUDES TO CORRUPTION - 2015 / 2016 (Control
Risks)
Do anti-corruption laws serve as a
deterrent?
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 10

11. Corporations Individual
Image provided by Shearman & Sterling LLP
Enforcement is the key…
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 11

12. The growing maze of Laws, regulations
and rules
(Proceeds of Crime
and Other
Measures) Act
2016
• Law that prohibits
making payments to
foreign government
representatives
• Two primary provisions:
(a) The Accounting
Provision
• Fair / accurate
record keeping
• Adequate system of
internal accounting
controls
(b) The Anti-bribery
Provision
• A payment, offer to a
government official
with a corrupt motive
for the purpose of
influencing in order
to obtain business.
• Two main offences
:
(a) intentional false
dealing with
accounting
documents
(b) reckless false
dealing with
accounting
documents
(a) Article 8 of the
OECD
Convention on
Combating
Bribery of
Foreign Officials
in International
Business
Transactions
• The Act also
amends the Anti-
Money
Laundering and
Counter-
Terrorism
Financing Act
2006
The Prevention
of Corruption
(Amendment)
Bill
2013
aims to:
(a) hold orga.
liable for bribes
offered or
given by their
associated
persons to a
public servant
(b) hold the
directors,
managers,
secretaries or
other officers
of a
commercial
organization
liable for an
offense
committed by
the commercial
organization
UK bribery
Act 2010
• Private sector
bribery
• Does not
require a
corrupt intent;
the payer must
merely intend to
influence
• Liability of
receivers
• No exemption
for facilitation
payments,
• Section 7 -
failure to
prevent bribery
France
Anti-
corruption
Law-Spain
II
MONETARY
AUTHORITY OF
SINGAPORE ACT
(CHAPTER 186) –
Limited to financial
institutions
The Criminal
Code)
The
Administrative
Offences Act
12

13. Poll:
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 13

14. Do you believe there is an overreliance on
Compliance programs to ensure compliance
with laws, rules and regulations?
 Yes
 No
 Unsure
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 14

15. Anti-corruption framework
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 15

16. 28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
To establish a
culture of integrity
and honesty
Objectives of building a Ethics and
Complaince Framework
16

17. 28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
Building Blocks of a Ethics and
Compliance Framework
17

18. Poll:
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 18

19. How is your Anti-bribery corruption (ABC)
program structured?
Stand alone ABC program ( I do not have a separate Ethics and Compliance
program)
Stand alone ABC program ( I have a separate Ethics and Compliance
program)
 Embedded with Compliance and Ethics program
 Do not have one
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 19

20. When can an Anti-corruption /
bribery Program Fail
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 20

21. Mindset before commitment
• Profits / bottom line is perceived as a competitor to anti-corruption programs
Investigations
(a) AM $Recovery
(b) Fraud $ Amt. Saved
=============
$$$
Compliance Enforcement Protected
(a) Contract Compliance $$
(b) Penalties saved $$
=============
$$$
New Business / Opportunities
(a) A new venture $$$
(b) Key Risks mitigated $$$
=============
$$$
Labor Law / WB
(a) WB that reported to int. HL $$$$
(b) [others]
=============
$$$
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
Not having the right mind set
21

22. Common pitfalls in an Anti-corruption framework
Tip: A simple litmus test to gauge leadership’s commitment to an anti-corruption
programme is to ask how many senior managers have attended the standard anti-
corruption training workshop traditionally advocated for staff?
• Multiplier effect.
• Top management cannot be everywhere.
• They have confidants who carry out tasks and so on.
• As a ethics and Compliance function you need to target confidants and their
confidants in the middle management.
• Are you ware of the concerns reported to the middle management?
• Monitor
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
No commitment from the organization
22

23. Common pitfalls in an Anti-corruption framework
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
Insufficient third-party management
Tip: Train on the limits of incentives. Sales employees should know what could their
client mean with words such as “engaging in”, “brain storming”, “favor”, “its no cash”
• Due Diligence (in general, pre merger , post merger)
• You can not force your ABC program on the third parties
• “Right to audit clause” – Do you exercise it?
• Is it your program or a rouge employee?
• Regular monitoring
23

24. Poll:
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 24

25. Q5: Do you exercise your ‘right to audit’
clause in a contract to assess a contractor?
Yes, often
Yes, only if there is a substantial allegation
No
No such clause exists in our contract
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 25

26. Common pitfalls in an Anti-
corruption framework
No reporting or recording mechanism
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
TIP: Reporting helpline – A
barometer of organizations
health? It’s a point of
information gathering
26

27. Not been able to analyze & categorize
the issues
Rating
Financials
Impact (USD)
Business Impact (e.g.
in HC it is Patients)
Reputational Impact
Impact through
regulatory breaches
Employees
Involved
Source
External /
Internal
5
> 10 Mil Adverse Events Long term systemic
failures or bad publicity,
etc.
International Law / Civil C-Suite Regulator /
Police
4
3
2
1
Receive
Complaints
Channel: WB,
Email, etc.
Assess
Complaints
(Data base /
Case mgmt.)
Level 1 : Analytics &
C&FRR
Level 2: Risk Mgmt.
Function
Level 3: Committee
…….. Close Loop /
Update system /
Action Plan /
Report to committee
Criteria for assessing complaints / allegations
Priority Criteria
High Priority > 75% of the Cumulative Score
Medium Priority > 40 % & < 75% of the Cumulative Score
Low Priority <40% of the Cumulative Score
HML Criteria
* Cumulative Maximum Score = 30
Investigate: Yourself
Investigate: Distribute
Investigate: Decline
27

28. Common pitfalls in an Anti-corruption framework
Case Example
• Alstom S.A. paid $772 million to the DOJ to settle criminal corruption charges.
• Alstom’s lack of commitment to preventing corruption. Even after a previous bribery case
was settled, the company continued to on its road path
Tip: The higher the perpetrator’s level of authority, the greater fraud losses tend to
be. Owners/executives only accounted for 19% of all cases, but they caused a
median loss of $500,000
• Has the CEO taken the company jet to his best friend’s funeral?
• Monitor action plan’s consistency
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
Check mate: Is the king different from the
pawn?
28

29. Common pitfalls in an Anti-corruption framework
Risk Assessment
• Risk assessment is a critical activity
• Risk assessment creates awareness
• Helps you fix
Monitoring
• Not a stand alone phase, it should be embedded in all the sub elements
• You don’t know what you will fix, unless you know what is broken
Case Example
• Smith & Wesson case – Hired third party without risk assessment
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
Inability to assess risks and in ability to
monitor
29

30. Common pitfalls in an Anti-corruption framework
• Lack of procedures
• Inability to create, update regulatory sources register - laws, rules and procedures
• Insufficient communication and transparency
• Insufficient and record keeping training
• Competing Priorities
• Making one size fit all (Don’t take any pre designed framework)
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP
Others
30

31. Q & A
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 31

32. Highlights
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• Custom questionnaire builder
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28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 32

33. Thank you
MyComplianceOffice
www.mycomplianceoffice.com
Phone: (866) 951-2279
advance@mycomplianceoffice.
com
Email : robinsingh@gmx.com
Website: www.whitecollarinvestigator.com
28/04/2017By Robin Singh, MSc.(Law), MIT, CFE, CFAP 33

34. Thank you