Anti-Bribery Legislation To Affect Firms

By Alastair Gill

The St. Petersburg Times

Published: February 27, 2013 (Issue # 1748)

Russia’s first comprehensive anti-corruption law, Federal Law No. 273 “On Combatting Corruption,” has been amended to require companies to have compliance officers and programs, according to international law firm Baker & McKenzie.

The new legislation, Article 13.3, which came into force Jan. 13, has a number of implications for companies operating in Russia, and means that firms have a statutory duty to develop and implement anti-bribery measures.

Previously, Russian law stipulated that organizations could be held liable for “failing to take all measures within their powers” to combat bribery.

However, firms were under no obligation to set up a compliance program and there was no guidance as to the provisions such a system should contain.

The amendment means companies are now legally required to create compliance programs that meet the standards of Article 13.3, and failure to do so will be viewed as non-compliance with Russian law.

Furthermore, dealing with third parties whose organizations do not have compliance programs may also be seen as failure to take all possible measures to prevent corruption.

Article 13.3 requires all firms to assess and supplement their existing compliance programs, ensuring that they have designated compliance personnel (anti-bribery “officers”) and clear procedures for conducting internal investigations and cooperating with police.

In addition, the amendment obliges firms to set up systems for identifying, preventing and resolving conflicts of interest; to prevent the creation and use of false and altered documents; and to conduct regular risk assessments inside the company itself and among its business partners and third party agents.

Firms also have to adopt a code of corporate compliance and ethics, as well as set up regular staff training programs on anti-corruption compliance, business ethics and conflict of interest.