Compliance Challenges in Cross-Border Transactions in Réunion
Companies operating cross-border businesses face a complex and fragmented compliance framework that spans multiple jurisdictions. In this article, we will explore the challenges and best practices for managing compliance in international trade.
Understanding Compliance in Réunion
Réunion, an overseas department of France, has its own set of laws and regulations that govern business operations. Companies doing business in Réunion must comply with both French and international laws, including anti-bribery and corruption laws.
Key Challenges
Anti-Bribery Law (Sapin II)
As soon as companies operate in France, they may be subject to the anti-bribery law, either by exceeding specific thresholds or doing business with companies subject to the law.
Increased Regulatory Oversight
The French Anti-Corruption Agency and the French National Prosecutor’s Office publish guidelines for companies and their advisors to help them understand the legal requirements to be adhered to.
Evolution of Compliance Systems
Businesses need to rapidly increase the scale and competences of their compliance systems, considering compliance technology for the first time.
Best Practices
Implement All Possible Actions to Prevent Corruption
- Mapping all risks
- Reviewing contracts and KYC procedures
- Raising awareness of employees and managers
- Investigating as soon as there is a risk, doubt, or alert
Get Help from Lawyers with Expertise on Anti-Bribery Programs
Legal obligations become more precise and complex; it’s best practice to get help from lawyers who have developed an expertise on the topic.
Pay Attention to Compliance Culture
A proper compliance culture is fostered, not just written in books but anchored in employees’ brains.
Actively Listen to Employees
- What are the risks and situations they face?
- What risks emanate out of products or advice they sell?
Implement Whistleblower Protection Act
Consider it as a chance to improve compliance communication.
Conclusion
Cross-border compliance is a challenge facing every person in business responsible for international trade. Companies operating in Réunion must comply with both French and international laws, including anti-bribery and corruption laws. By implementing best practices and staying up-to-date with regulatory changes, companies can minimize the risk of non-compliance and ensure smooth operations in the region.
Sources
- “Deutsche Compliance Konferenz 2023” (Frankfurt, 9th and 10th May)
- “The European Compliance Perspective” panel session
- “White-Collar Crimes and Compliance”
- “Commercial Disputes, Compliance and Internal Investigations”
- “Global Investigations”
Note
This article is for informational purposes only and should not be considered as legal advice. If you need support or assistance with compliance issues in Réunion, please consult a qualified lawyer or professional advisor.