{"id":3287,"date":"2020-10-23T10:36:32","date_gmt":"2020-10-23T10:36:32","guid":{"rendered":"http:\/\/ukrpayroll.com\/?p=3287"},"modified":"2021-01-15T05:59:11","modified_gmt":"2021-01-15T05:59:11","slug":"regulation-of-compliance-matters-in-ukraine","status":"publish","type":"post","link":"https:\/\/ukrpayroll.com\/ru\/regulation-of-compliance-matters-in-ukraine\/","title":{"rendered":"Regulation of Compliance Matters in Ukraine"},"content":{"rendered":"

The term \u201ccompliance\u201d in its current sense emerged in the US business environment over the last 30-40 years and refers to the system of internal regulations and measures implemented by entities to ensure adherence to laws, as well as to specific industry standards, trade customs, and regulations. In international business, this term also currently covers the system of control an entity uses to ensure that its directors, managers, and other employees, as well as contractors and authorized representatives, adhere to all regulations applicable to a business, whether local, foreign, or specific to a company.<\/p>\n

In Ukraine, this term has not been widely used, as legislative and practical efforts are focused very narrowly. In particular, the principal statute in the area \u2014 the Law on Prevention of Corruption (adopted in 2014 and regularly amended) \u2014 is aimed primarily at counteracting corruption and eliminating the impact of conflicts of interest on business and government decisions. However, like in many other aspects of the Ukrainian economy and business over the last quarter of a century, Ukrainian companies will inevitably follow the path chartered by multinational companies in the area of compliance and adopt the best practices that have been developed, which cover a much broader range of issues.<\/p>\n

The main driver for this will be the demands of international and certain foreign legislation (US Foreign Corrupt Practices Act, UK Bribery Act, etc.) because global companies are introducing their worldwide standards into their Ukrainian operations, causing their Ukrainian business partners to adopt the relevant standards. In particular, the best clients of Ukrainian companies \u2014 multinational and big foreign companies \u2014 demand that their suppliers either adhere to the customer\u2019s compliance policies or that they have their own compliance policies that are satisfactory to the customer.<\/p>\n

Ukrainian legislation, although not perfect, has been drafted along the lines of the most significant international anti-bribery conventions. For example, now, any bidder in a government or municipal tender must have an anti-corruption program and a designated company employee responsible for its implementation. Certain specific legislation has been adopted to regulate interaction with healthcare practitioners and that has had a major impact on the pharma industry in Ukraine. Also, as of 1 September 2014, all companies in Ukraine may face criminal liability for corruption offenses committed by their employees (not only by management!). Therefore, to survive and develop, any large or mid-size Ukrainian business must build an effective compliance system that takes into account both best international practices (which have emerged in response to certain foreign laws) and Ukrainian legislation.<\/p>\n

Key Compliance Issues and Protections<\/h2>\n