Manual digital parte 2 | Page 11

Visión Tridimensional Compliance When elections impact on compliance in Latin America Politics can have a serious effect in developing business risking their corporate reputation and long term sustainability When doing business in Latin America – particularly in relation to large projects – investors and business leaders are always aware of imminent changes in the political climate. The opportunities for companies are clear, but come election time and with a new government in place, whether at a local, regional or national level, there is a potential for challenges to existing projects. The session organised by The Latin American Lawyer and hosted by Hunton & Williams, brought together a group of leading Miami-based general counsel and compliance officers from companies with business interest in the Latin American region to address the challenge of reducing risk in times of change. There might be a period where companies are scrutinised, or even suspected of misconduct when winning contracts linked to projects, services and/or suppliers related to previous administrations. What can companies do to guarantee those contracts and projects? The debate was led by Alejandro Nino at Royal & Sun Alliance Insurance, Fernando Gonzalez at Basham, Ringe & Correa that brought the experience from the Mexican perspective, John J Delionado at Hunton & Williams, Jose Alfredo Arce at Citigroup and Juan C. Enjamio at Hunton & Williams that led the session and final conclusions. When talking about public procurement in Latin America, some companies are still crossing the red-line to close the deal, but the trend is to develop procedures to avoid malpractice and to protect the long term sustainability of the company. It is not only a question of closing the deal but understanding who is on the other side of the deal and how do they understand compliance. A good due diligent process is key to avoid surprises. The culture of compliance needs to be in every part of the business. It is not a question of the compliance team, but something that everyone needs to integrate in their everyday duties. When there is a joint venture or a process of buying another company, the procedures need to be transparent and the company with stronger compliance culture needs to transmit their values and establish where are the red lines clearly at all levels of the company. At an initial stage, there might be needed external teams to investigate deeper and make sure that best practice is used from the top to the bottom of the company. Auditing processes or inves