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Compliance Program Development in Belgium: “Company’s Must Comply or Die”
Introduction
Deloitte Belgium conducted a benchmark survey to assess the current state of compliance in Belgium’s corporate world. The report marks the launch of the Deloitte Corporate Compliance Seminar, a platform where companies can engage with peers and discuss the challenges they face.
The Importance of Compliance
Compliance has become a critical topic on company management and board meeting agendas due to the increasingly complex regulatory environment and tough industry standards. With rising enforcement actions and hefty fines, companies must act ethically to avoid severe consequences.
State of Compliance in Belgium
The Compliance function is still evolving in Belgium, with 53% of surveyed companies establishing their function within the last five years. While some have set up separate Compliance functions, many are still maturing, with only a few having formalized their roles and responsibilities through a Compliance charter.
Regulatory Requirements
Companies face a plethora of regulatory requirements, prompting them to focus on organizing their Compliance functions. The scope of Compliance is expanding, with popular subjects including:
- Ethical compliance
- Fraud
- Bribery and corruption
- Competition
- Privacy (a key concern due to its current prominence in the market)
Developing an Effective Compliance Program
Developing an effective Compliance program is crucial for companies operating in Belgium. A Compliance program should ensure that employees work within legal boundaries, are informed, trained, and evaluated accordingly. However, many companies are struggling to balance the scope of their Compliance functions between classic subjects and new regulations.
Key Elements of a Compliance Program
Close collaboration with other functions is essential for covering various aspects of Compliance. An integrated framework supported by a common methodology remains elusive. Companies must prioritize:
- Awareness creation
- Training
- Monitoring compliance activities
Embedding a Culture of Compliance
Embedding a culture of Compliance is critical, and management support is key. Middle management plays a crucial role in advocating the importance of Compliance to ensure it remains a priority across the organization.
Conclusion
In conclusion, Compliance is evolving rapidly, requiring companies to increase their attention to this critical area. From a regulatory and reputational perspective, the message is clear: “Comply or die.”