1. Corruption and Compliance
Asia Congress 2013
25th
June 2013
Presented by
Sam Gibbins
Director, International Compliance Association

2. Closing the Gap between
Culture and Compliance
through Localisation

3. Morals and work ethic
“How do we behave when we think
nobody is looking?’’

4. Compliance Culture starts at…

5. Chatswood Consulting Ltd
www.chatswood.co.nz
… the top.

6. Often one key component is
overlooked…

7. Kirk O. Hanson
May 2008

8. Singapore Law Watch
June 14th
2013
‘Some of the biggest SGX listed
companies still giving scant
details or none at all’

9. The organisation needs to
open lines of both horizontal
and vertical communication

10. The compliance culture,
programme and your staff

11. Every firm has a (general) culture, which drives
• The way power flows
• The way people, especially management, communicate
• The risk appetite
• The way things are done
• The energy (and resource) levels applied
Cultures are pervasive, and exist across the firm
Shaping your firm’s Compliance
culture and its compliance
programme

12. • To develop an appropriate compliance culture
• To provide training
• To provide consultancy to the Business Units
• To implement, monitor and report on standards of
compliance
• To interface between the firm and its regulators
Typical contents of a Compliance
Function Terms of Reference

13. It is also important to
remember that in different
jurisdictions you are at a
different ‘Starting Point’…

14. …therefore one cannot
assume everyone already
has an ingrained
understanding of culture
and ethical values.

16. The Guardian
January 4th
2013
Otto Bruderer, a managing partner of
the bank, told a New York court:
"Wegelin was aware that this conduct
was wrong… From about 2002 through
to about 2010, Wegelin agreed with
certain US taxpayers to evade the US tax
obligations of these US taxpayer clients,
who filed false tax returns with the IRS.”

17. securitymanagement.com
April 27th
2012
•‘Morgan Stanley maintained significant
internal controls designed to prevent
such corruption’
•The policies were updated regularly
and employees were trained in FCPA
compliance
•Records showed that Morgan Stanley
trained Peterson on the FCPA seven
times during the time frame of the fraud
and reminded him of FCPA rules 35
times

18. Is it possible to measure the Integrity and Ethics of an
individual, or even of an organisation?
In April 2013, the CISI became the first professional
body to require candidates taking customer facing entry
level examinations for wholesale/capital markets
financial services activities to pass an integrity test.
Wholesale/capital markets practitioners in the UK now
need to complete IntegrityMatters test, and pass with
an A or B grade, prior to taking their CISI exams

19. Localisation is crucial to spread a
coherent and relevant message to
your staff.

20. Wearesocial.org
December 7th
2012

21. Firstmonday.org
May 6th
2013

22. Training should take the form of a risk based
approach.
- who?
- what?
- where?
- why?
- how?
Should everyone be doing the same training?

23. 70:20:10
70% on the job tasks, experiences and problem solving
10% structured training
20% feedback, working around problems relating to need
There are some limitations to this model; measurements,
record keeping, suitability, career exposure, previous training,
to name but a few.

24. E-learning v Face to Face Training?

25. Key Compliance Framework Issues
• Ultimate responsibility for compliance rests with
senior management
• The compliance function is developed and used
by senior management as a critical tool,
complementing other key risk management
functions such as internal audit
• The compliance function is independent but
sufficiently close to business operations to be
effective

26. Key Compliance Framework Issues
• The compliance function is instrumental in
embedding a strong compliance culture
throughout the organisation
• The compliance function ensures ongoing
compliance with regulatory requirements or at
least is capable of timely remedial action

27. www.morecarrot.com
July 19th
2012
It’s official: establishing a culture of compliance in the
workplace – and communicating it clearly – can help you
earn a get out-of-jail card in the courtroom.

28. • There is no ‘one size fits all’ solution
• Firms need to assess what they need, and how
best to achieve this
• This can vary to a large extent from one
location to another
• What is best for your competitor may not be
best for you
• There is no perfect answer!
Conclusion

29. - END -
My thanks to you all for listening
and, where applicable, staying
awake

30. Sam Gibbins
Director
International Compliance Association
sgibbins@int-comp.org
+65 6500 0012
Contact Information