ACC & UNIC: How to take Ukrainian compliance to another level

The Ukrainian Network of Integrity and Compliance has initiated a number of discussion platforms where lawyers, entrepreneurs, and international experts could share best practices and ideas for strengthening compliance in Ukraine.

Issues and risks which Ukrainian businesses could avoid thanks to available strong compliance systems were raised during the ACC Compliance Club meeting this week. International expert with over 30 years of experience, founder and the chairman of Guidepost Solutions, former

Chief of the Criminal Division of the United States Attorney’s Office for the Southern District of New York. Bart Schwartz shared his vision on BI role and practical cases from different countries.

“A certain infrastructure of compliance in business is being formed in Ukraine, legislation and standards in the corporate sector are being improved. At the UNIC platform, we consider the issue both at the national level, work with the corporate sector, and cover the international level. We strive to create more opportunities for discussions on what Ukrainian compliance needs, besides common sense,” said Pavel Verkhnyatsky, Director of COSA, member of the UNIC Ethics Committee, co-chairman of the ACC Compliance Club.

Partner of the law firm Arzinger, Member of the UNIC Executive Committee Lana Sinichkina, and partner of the law firm Arzinger Katerina Gupalo presented and provided comments on mechanisms for implementing compliance obligations, which they propose to consolidate at the legislative level. These changes are intended to reduce the negative impact of criminal investigations on legal entities.

Bart Schwartz became the key speaker of the meeting, having led complex issues for government agencies, multinational corporations, and non-profit organizations for over 30 years. In particular, he was retained by the Governor of the State of New York to conduct a review of all grants and approvals in certain programs and operations. He also served as the Department of Justice-appointed monitor of General Motors.

“Compliance varies greatly from country to country, but there are common features that will be important for any system. There are two types of compliance: regulatory, which is about rules and laws, and ethical, cultural, which is how to build an ethical culture in a company. I think you don't have to focus as much on the rules, as you have to focus on the culture - joint rules of integrity for all companies in the world ... It is also important to determine at what stage it is worth "including" the monitor in the verification process. In America, this happens after a long process of investigation. In the UK, a court is involved in this process,” said Bart Schwartz.

Summing up the meeting, Head of Ethics & Business Integrity at Sanofi Ukraine LLC, Chairman of the UNIC Ethics Committee, Co-chair of the ACC Compliance Club, Maryna Romas noted that “Compliance prevents possible risks not only internally in the company, but also protect the company from such activities as liquidation and property confiscation by taking obligations to implement compliance".