ISO 37301 Compliance Management Systems

Navigating a Sea of International Compliance Standards to Build a Framework for an Effective Strategic Compliance Program 

How is Your Company Keeping Up with International Regulations? Does the organisation have a defence of ‘adequate procedures’ against an accusation for failure of a commercial organisation to prevent bribery?

 The US Foreign Corrupt Practices Act (FCPA). The Good Practice Guidance on Internal Controls, Ethics and Compliance (OECD). The Anti-Corruption Ethics and Compliance Handbook for Business (OECD). The UK Bribery Act 2010. The British Ministry of Justice’s Adequate Procedures document. Section 17A of the Malaysian Anti-Corruption Commission Act. 

So many laws and regulations. So little resources available to ensure compliance. 

In an effort to stifle the spread of financial crimes, specifically Money-Laundering and Corruption at the global level, the world’s governing bodies have woven together with a complex and ever-expanding web of laws, regulations and standards that greatly impact how multi-national organisations conduct business. And if your business isn’t meeting the myriad obligations established by government bodies worldwide, the risk exposure can grow exponentially as each day passes. 

Good corporate governance begins at the top, with a strong leadership desire to demonstrate that the organisation is taking every available course to prevent financial crimes, specifically Money-Laundering and corruption. The challenge comes in interpreting and complying with the various laws, standards, codes and rules that companies face at the local, regional, and national levels and developing strong internal systems that safeguard your organisation from the internal and external risks associated with financial crimes, Money-Laundering and Corporate Corruption. 

The guidelines outlined in the internationally accepted “ISO 37301:2021 Compliance Management Systems” represent the “adequate procedures” in demonstrating an effective framework that protects the organisation and prevents it from falling victim to the many risks associated with Money Laundering, Corporate Corruption and related financial crimes. ABAC Certification –an Accredited Certification Body - through its Anti-Bribery Anti-Corruption (ABAC) Centre of Excellence Limited-- can examine your corporate compliance program in demonstrating accredited processes and systems specifically designed to help your organisation effectively manage its compliance risks while fostering a system-wide culture of business integrity. 

ISO 37301:2021 Based on the Principles of Good Governance 

ISO 37301 is a widely accepted standard that guides establishing, developing, implementing, evaluating, maintaining and improving an organisation’s compliance management program. It covers all compliance-related issues, including Anti-Bribery, Anti-Corruption, Antitrust, Fraud, Misconduct, Export Control, Anti-Money Laundering and many others virtually. 

ISO 37301 acts as a global benchmark for an effective and responsive compliance management program with a foundation that is based on the principles of good governance and transparency. Further, the guidelines set forth by the ISO 37301 apply to all types and sizes of organisations and aren’t restricted by industry, sector, risk exposure or geographic reach.  

 ISO 37301 Helps an Organisation: 

• Become attuned to new and existing laws, rules and regulations on a global level;
• Be alerted when the risk of breaching any regulation exists.
• Correct potential breaches swiftly and effectively.
• Demonstrate a statutory defence of ‘adequate procedures’ against a charge or accusation of failure of a commercial organisation to prevent bribery and associated financial crime.
• To determine ‘corporate compliance programme’ and organisation’s internal systems and procedures to ensure that the organisation – and those working there – comply with legal requirements and internal policies and procedures.
• Assures management, investors, business associates, personnel and other stakeholders that the organisation is actively pursuing internationally recognised and accepted processes to prevent bribery, corruption and financial crime. 

ISO 37301 Offers Organisations a Competitive Advantage 

On the surface, organisations that implement ISO 37301 demonstrate a commitment to company-wide good governance and ethical practices, two core principles that contribute to the overall economic success of any business. But the benefits of implementation go much deeper and include: 

• Safeguarding the organisation’s overall reputation
• Verifying the existence of an effective compliance management system
• Reducing the risk of prosecution in legal proceedings
• Strengthening the organisation’s position in international business deals 

Additionally, courts in several jurisdictions have previously considered an organisation’s overall commitment to compliance when determining penalties in corruption-related legal cases. An effective compliance management system provides proof of the organisation’s integrity levels and business values.

An Invaluable Complement to ISO 37001 

While ISO 37301 provides organisations with guidelines for implementing appropriate measures to prevent, detect and monitor compliance, the standard does not specifically lay out requirements needed to address the various individual components of corruption. 

That’s where “ISO 37001:2016 Anti-Bribery Management Systems” comes into play. This globally recognised standard certifies that an organisation has implemented reasonable and proportionate measures to prevent bribery and establishes requirements for such areas as top-level leadership, training, bribery risk assessment, due diligence adequacy, financial and commercial controls, reporting, audit and investigation. 

Compliance with both standards presents a unique opportunity for the organisation to firmly state that its anti-bribery controls and systems fall directly in line with the company’s compliance management systems following the standards. 

Benefits of Integration to Both Standards 

ISO 37001 Anti-Bribery Management Systems is structured to be easily integrated into an existing corporate compliance management system following ISO 37301 Compliance Management System. In both standards, the corporate objective is to establish generally accepted, best-practice procedures, controls and measures to identify, detect, prevent and monitor system-wide corruption while demonstrating a strong commitment to compliance. 

This greatly benefits businesses -- particularly multi-national organisations -- seeking a competitive advantage when attempting to expand operations across geographic regions, attract potential investors, report to current stakeholders and build viable partnerships in the global marketplace. 

Furthermore, such integration addresses marketplace expectations that the organisation has firm control over the operations of its outside suppliers, agents, distributors and other third-party affiliations. 

Certification through ABAC Centre of Excellence Limited 

ABAC Centre of Excellence Limited, duly accredited by United Kingdom Accreditation Service UKAS, educates, equips and supports the world’s leading business organisations with the latest best-practice risk assessments, performance assessments, systems improvement and standards certification. 

We provide world-class accredited certification services to organisations seeking to validate or expand their existing corporate compliance frameworks to maintain a competitive edge in the world marketplace. 

The ABAC Centre of Excellence offers a complete suite of world-class services and solutions designed to help organisations mitigate the internal and external risks associated with operating in multi-jurisdiction and multi-cultural environments while assisting in developing frameworks for strategic compliance programs. 

Compliance Risk Assessment  

ABAC Certification provides an expert audit of your existing compliance risk management system to assess effectiveness and vulnerabilities while ensuring your organisation sufficiently complies with International and local regulatory frameworks, specifically Foreign Corrupt Practices Act FCPA, UK Bribery Act, Malaysian Anti-Corruption Commission laws, Anti-Money Laundering and associated financial crime regulations, and all other global, regional and local regulations. 

ISO ISO 37301:2021 & ISO 37001:2016 Certification 

ABAC Certification is subject-specific and fully trained to offer independent certification to ensure that your organisation complies with the standards. According to the standards, ABAC Certification’s auditors and analysts work with your team to benchmarking the corporate compliance and anti-bribery management systems. 

These services further benefit the organisation in that top management, compliance officers, risk managers, internal and external auditors, and all related personnel work together to implement adequate measures to prevent non-compliant behaviour on several key fronts, including: 

• Comprehending the scope and context of the compliance management system
• Equipping the organisation’s leadership via management-led controls
• Educating personnel on the importance of compliance
• Furthering compliance as a risk mitigation tool
• Establishing firm compliance objectives
• Building training programs that foster a strong corporate culture of compliance
• Developing effective communications and supporting documentation
• Monitoring the effectiveness of the compliance framework
• Identifying the necessary actions to ensure continuous improvement of the program