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Compliance Risk Management in Turkey Takes Center Stage for Multinational Companies
As multinational companies expand their operations in Turkey, they are increasingly recognizing the importance of understanding the fraud and corruption risks posed by third parties with whom they contract. This heightened awareness is particularly crucial for compliance with cross-border anti-corruption legislation introduced in many Western jurisdictions.
Why Third-Party Monitoring Matters
Under various legal frameworks, organizations may be held liable for acts of corruption committed by their third parties. Dedicated third-party monitoring has been shown to significantly reduce legal costs, as companies that invest adequate resources in monitoring third parties are less likely to face legal action.
Anti-Corruption Laws and Conventions
In the field of anti-corruption, due diligence obligations on third parties have expanded in recent years, driven by laws and conventions such as: * US Foreign Corrupt Practices Act (FCPA) * UK Bribery Act * United Nations Convention against Corruption * OECD Anti-Bribery Convention
Under most of these laws, corporate criminal liability can be triggered when a bribe is paid by or through third parties, including: * Agents * Consultants * Suppliers * Distributors * Joint-venture partners * Any individual or entity with a business relationship with the company
Stricter Laws and Enforcement
Governments around the world are introducing stricter laws to combat bribery in business transactions, and enforcement is on the rise. Criminal penalties for wrongdoing have reached record levels, and the extraterritorial reach of anti-corruption laws means that organizations doing business in multiple jurisdictions can be prosecuted for acts of bribery committed anywhere in the world.
Prevention of Indirect Corruption
In response to this uptick in regulatory and enforcement activity, organizations are devoting more resources to establishing policies, infrastructure, and processes aimed at fighting corruption within their own businesses and supply chains. One area of special attention is the prevention of indirect corruption through third parties, which is explicitly prohibited by: * United Nations Convention against Corruption * OECD Anti-Bribery Convention * National laws
Conducting Risk-Based Due Diligence
Conducting risk-based due diligence on third parties has become a legal expectation in many countries that have ratified these conventions, and conducting adequate due diligence may help organizations decrease or even avoid the risk of criminal culpability for corrupt third-party conduct.
Cerebra: A Leading Provider of Third-Party Due Diligence Services
Cerebra provides third-party due diligence services to clients operating in Turkey. We work with clients to develop due diligence approaches tailored to third parties presenting varying levels of risk, providing an objective and independent perspective. Our methodologies are informed by a wide range of risks and various laws, including the US Foreign Corrupt Practices Act (FCPA), UK Bribery Act.
Comprehensive Third-Party Risk Management Services
Our services include:
- Third-Party Risk Assessment: Using a risk assessment process to address third-party risks and ensure the level of resources provided is commensurate with the level of risk.
- Third-Party Screening: Using advanced analytics to collect and examine data from the internet and proprietary databases to identify risk indicators.
- Third-Party Questionnaires: Managing due diligence questionnaire processes for third parties determined by Company management based on risks.
- Due Diligence Support: Analyzing questionnaire results, preparing due diligence reports, and escalating cases with serious findings to your compliance team for decision-making.
- Background Checks: Conducting comprehensive checks, including detailed research into companies, key individuals, and ultimate beneficial owners.
- Third-Party Audit (On-Site Inspections): Conducting on-site, detailed assessments of the third-party’s control environment.
- Ongoing Monitoring: Performing ongoing analysis using data analytics to identify any emerging or new issues regarding third parties onboarded. The scope of the monitoring will depend on your requirements and risk appetite.
By partnering with Cerebra, organizations can ensure compliance with anti-corruption laws and regulations while minimizing the risk of fraud and corruption in their supply chains.