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How to prevent corruption in Venezuela through Corporate Compliance?

In order to consolidate a responsible corporate culture with a view to business sustainability in Venezuela, it is necessary for companies to adopt programs of Corporate Compliance. This corporate tool has been adopted by many companies since 1977 to legitimize practices and capitals according to the laws of each country. Thus endorsing the quality of their legal and tax processes to prevent crimes such as money laundering, embezzlement of capital, among others. Following this order of ideas, today we will understand how to prevent corruption in Venezuela through Corporate Compliance.

Internal crime prevention in Venezuelan companies

It is evident that Venezuela needs to consolidate a corporate culture that develops its legal and financial activities in a responsible manner. That is why this type of program is based on national legislation for compliance with legal and tax obligations. In the Venezuelan context it has direct implications with:

  • Organic Law Against Organized Crime and Financing of Terrorism
  • Law of the Banking Sector Institutions, the regulations issued by SUDEBAN
  • Regulations of the Central Bank of Venezuela
  • Regulations of the National Financial Intelligence Unit (Unidad Nacional de Inteligencia Financiera)
  • Other bodies that regulate financial activity in the country.

At the international level the direct implications would be with the U.S. Office of Foreign Assets Control (OFAC), the rules of the Financial Action Task Force and the regulations promulgated by the EGMONT Group.

In this way, Corporate Compliance seeks to promote a culture of compliance and alignment according to national and international standards applied to each business area. Preventing financial losses, computer crimes, damage to corporate image, among others, through the verification and regulation of their business practices. Thus, the good management of processes, legal and ethical risks allow reducing the possibilities of internal corruption within a company.

Risk assessment in Corporate Compliance programs

This is one of the key aspects that a compliance program must have in place for the crime prevention in a company. A risk assessment involves a process of documenting and analyzing each unit in the business to understand the complexity of the business model. In this way you can anticipate changes in the business and establish strategies to reduce the impact of risks related to your sector.

This program is based on the norms and requirements of governmental institutions and from there policies and strategies against crimes can be established. In addition, they serve to identify the ethical and legal obligations acquired with their workers to provide efficient solutions. In that sense, by establishing the appropriate procedures according to each business model, you can guarantee the correct development and operation according to the legal regulations in force. Therefore, it is unlikely that your company will be involved in labor lawsuits, sanctions, and other legal and financial scandals. In this way, corporate compliance works as a tool to prevent corruption in Venezuela.

Implementation of controls to prevent corruption in Venezuela

To avoid financial fraud, it is necessary to establish monitoring and control procedures where codes of conduct and compliance programs can be applied. This requires cooperation between the different lines of business to share information to analyze the cause of conflicts and provide solutions.

Corporate Compliance programs also promote the identification of clients and entities in case it is necessary to terminate a risky relationship. Therefore, once the risks have been analyzed and different scenarios have been visualized, the application of preventive controls must guarantee the existence of effective and sustainable policies. Since it allows roles and responsibilities to be defined according to the correct functioning of the company.

Therefore, the application of Regulatory Compliance or Corporate Compliance programs to the commercial practices of companies guarantees their proper functioning according to the Venezuelan legal framework. It is for this reason that in Alan Aldana & Abogados We promote the use of this organizational program for business development within and outside the country. At the same time we assist our clients in the identification and evaluation of legal and ethical risks. With the objective of presenting a work plan designed to the reality of each company that allows its development in accordance with current legal regulations.

If you would like more information or need advice on this and other issues of criminal and commercial law, do not hesitate to contact us at contact us at. We also share with you our social networks so that you can keep updated on the legal topics that are in trend: Instagram, Facebook, Twitter y Linkedin.