Bulgaria Introduces Compliance Audit Checklist for Companies
======================================================
The Bulgarian Competition Protection Commission (CPC) has released its first set of guidelines on corporate compliance programs, aimed at helping companies avoid sanctions by running a compliant business with complex Bulgarian and European competition laws.
Six Procedures for Effective Compliance Programs
The CPC’s guidelines outline six procedures for developing effective compliance programs:
- Conducting an internal competition compliance audit and risk analysis
- Implementing internal control measures
- Monitoring the program’s effectiveness
- Identifying potential competition risks associated with the business
- Developing high-level action plans and internal procedures for avoiding such risks
- Committing to the compliance program, informing relevant employees, determining a budget, and responsible persons for its development and implementation
Key Elements of an Effective Compliance Program
According to the guidelines, companies should:
- Identify potential competition risks associated with their business
- Develop high-level action plans and internal procedures for avoiding such risks
- Commit to the compliance program
- Inform relevant employees
- Determine a budget and responsible persons for its development and implementation
- Develop an internal organization for reporting non-compliance
- Hold internal compliance trainings and seminars
- Regularly monitor and evaluate the effectiveness of their programs
Benefits of Compliance Programs
The CPC stresses that adopting a compliance program does not guarantee better treatment by the authority in case of a competition infringement. However, such programs can:
- Increase awareness of competition law risks
- Set up an early warning system to identify potential infringements
- Enhance a company’s reputation as more ethical
Implementing Effective Compliance Programs
While implementing an effective compliance program may be costly and cumbersome, the benefits usually outweigh the risks of potential sanctions. Companies are advised to adopt an individual approach tailored to their specific circumstances and size.
Conclusion
The new guidelines aim to provide companies with a roadmap for navigating competition law risks and avoiding costly sanctions. As Bulgaria continues to develop its economic landscape, the implementation of effective compliance programs is crucial for businesses operating in the country.