Compliance service

Anti-corruption compliance control. What is it and to what extent can it eliminate corruption?

The updated policy of Uzbekistan is based on such lofty ideas as raising the level of justice and the rule of law in society, introducing modern effective public administration, forming a spirit of strict intolerance to all manifestations of corruption among civil servants, and unconditionally ensuring the interests of the people. First of all, the priority idea put forward by President Sh.M. Mirziyoyev at the heart of these reforms is the mobilization of all opportunities in the interests of our people in accordance with the basic principle “The people should serve the state bodies, not the state bodies”.

In this regard, in order to achieve true effectiveness of the reforms, it is of particular importance to consistently ensure the effectiveness of the fight against corruption in every sphere of the state and society.

It is worth noting that ensuring the effective implementation of state policy in the field of combating corruption and eliminating the causes and conditions of corruption, rather than the consequences, requires the implementation of modern crime prevention measures widely used in international practice.

In this regard, one of the main tasks of the newly established Anti-Corruption Agency, established in accordance with the Presidential Decree No. PF-6013 dated June 29, 2020 “On Additional Measures to Improve the Anti-Corruption System in the Republic of Uzbekistan”,

in 2020-2021, was determined to gradually introduce internal departmental anti-corruption control systems in all state and economic management bodies, state-owned enterprises and enterprises with a state share in the authorized capital, including banks.

Analysis of foreign practice has shown that in countries with a market economy based on laws, one of the important tools for ensuring the effective operation of state and private sector participants in the field of combating corruption in accordance with international standards, legislation and other modern methods is the establishment of a compliance control system for combating corruption.

Compliance control against corruption is a preventive system that organizes the activities of state and economic management bodies, business entities in accordance with international standards, laws and other regulatory legal acts in the field of combating corruption, and includes the timely identification and elimination of corruption risks, conflicts of interest, and reporting on violations of the law and corruption-related offenses.

The compliance control system first appeared in the United States in 1906. The need for this is associated with the creation of companies and corporations aimed at ensuring security in the country’s economy.

From the second half of the last century to the present day, conflict situations with large companies (Volkswagen, Daimler, Siemens (Germany) Odenbrecht, Petrobras (Brazil), Samsung Group, Hyundai Motor Co. (Republic of Korea), BAE Systems (Great Britain), Baker Hughes Inc, Panalpina World Transport (USA) and others) have necessitated a fundamental reform of anti-corruption systems in the private sector.

Today, according to official data from the international law firm Baker and McKenzie for 2019, anti-corruption compliance control systems have been introduced in companies in more than 150 countries.

For example, in the UK alone, more than 800 corporations and banks with a capital of 1 billion pounds sterling, this system was established as a comprehensive measure to protect against various corruption risks and is currently being widely used due to its effective aspects.

In France, all corporations and banks with a capital of more than 800,000 euros are required to have implemented anti-corruption compliance control systems.

In accordance with the practice of countries with effective experience in implementing compliance control systems, the following two models of this service are most widely used:

1. The company and organization are focused on organizing their activities solely in accordance with existing domestic laws

and regulations. In this case, the implementation of the compliance service is limited to minimum rules.

2. The organization of the compliance control system is based on the recommendations of international organizations (Recommendations of the Basel Committee on Banking Supervision, International Compliance Association) in assessing corruption risks, and in this model, the status, tasks, and scope of activities of the compliance service are based mainly on international standards and recommendations.

The difference between these two models is that in the first model, the company or organization that establishes the compliance control system itself