OUR COMMITMENT TO ETHICAL BUSINESS
MAXIMA GROUP LLC (hereinafter The Company is committed to ethical business. The Company’s policy is never to offer, pay, request, solicit or receive bribes in any form, or to facilitate, assist in or abet any offer or payment of bribes and to refuse any request to pay them.
Conducting business with integrity is a legal and moral imperative. It also makes good business sense because bribery will never be in the Company’s commercial interests. As well as being an administrative or a criminal offence, the payment of a bribe is an unnecessary cost to our business.
Bribery may expose the Company to administrative, criminal and/or regulatory investigations that may result in prosecution, fines and costs to our business. Bribery may also expose the Company to legal action from competitors or third parties. Individuals engaging in bribery or corrupt behaviour can face criminal prosecution personally.
The Company will not tolerate any level of bribery or corruption and is committed to:
- preventing bribery and corruption; and
- ensuring that all reported cases of bribery and corruption are investigated and dealt with in accordance with this Policy.
This commitment is shared by Senior Management. Any individual who uncovers and reports bribery or corruption by a colleague, business partner or third party will have the full support of the Company’s Senior Management and will be protected from any form of retaliation.
When you take any business decision, you should consider its compliance with this Policy, with legal standards, and whether you would be happy if your decision became public knowledge.
You will not face any adverse or negative consequences for complying with this Policy. Failure to comply with this Policy may however result in disciplinary action, up to and including dismissal, and may also result in civil proceedings and/or criminal prosecution and sanctions against you personally, including being banned from your profession, fines and imprisonment.
For any queries please contact the Head of Legal being the responsible individual for this Policy.
For the purposes of this Policy:
- ABC means anti-bribery and corruption;
- Active Bribery means the offer, promise, authorisation or payment of bribes (directly or indirectly) or assisting in, abetting or facilitating any such conduct;
- Affiliate means a Close Associate or an Immediate Family Member;
- Bribery of a Public Official means the provision of any financial or other advantage to influence a Public Official (improperly or otherwise) in the performance of his/her official duties in order to obtain or retain a specific commercial advantage or general patronage from the Public Official;
- Close Associate means an individual who is known to have joint beneficial ownership of a legal entity or legal arrangement or any other close business relations with such a Public Official or any individual who has sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the benefit of such a person;
- Commercial Bribery means the provision of any financial or other advantage where there is intent to induce or reward improper conduct by the recipient or another person in the private sector;
- Immediate Family Member means a spouse or partner, or a parent, foster parent, child, adopted child, or their spouse or partner;
- Person act on behalf of the Company means anyone acting on the Company’s behalf (whether contractually engaged or not) to help win or retain commercial advantages. To avoid misunderstanding the definition Person act on behalf of the Company does not include the Company’s employees;"Joint Venture Partner" means the third party partner engaged in a Joint Venture with [the Company];
- Joint Venture means a commercial project undertaken jointly by the Company and a third party partner. This arrangement may be of a contractual nature or involve the creation of a specific joint venture legal entity;
- Passive Bribery means the request, solicitation, agreement to accept or receipt of bribes, either directly or indirectly;
- Public Officials means those in legislative, administrative, or judicial positions, public servants, military or similar officials of any kind, or any persons that exercise public functions on behalf of any country, territory, municipality, or for any public agency or public enterprise, any person that exercises any function on behalf of any wholly or partially state or municipally-owned organisation or public international organisation;
- Relationship Candidate means a candidate for hiring who is referred by a client, potential client or Public Official, including an employee of a state-controlled entity, or otherwise known to have a family or close personal connection to a client, prospective client or Public Official;
- Responsible Head means the head of the division responsible for the preparation, conclusion, performance of an agreement and for its compliance with internal policies; and
- Senior Management the executive management body of the Company.
This document sets out the Company’s policy for preventing bribery and corruption, in line with all applicable ABC laws and standards.
This Policy aims to:
- outline principles for conducting business with integrity and in accordance with the highest ethical standards;
- provide guidance on the types of behaviour that may give rise to violations of ABC laws;
- ensure that the financial and other resources of the Company are used solely for their proper purposes; and
- promote a culture of honesty and openness among the Company employees.
This Policy applies to all the Company’s Group companies and all of their directors, officers and employees (which for these purposes includes temporary employees) at all times. This Policy applies wherever the Company does business.
The Company expects its business partners, as well as any third parties acting on its behalf to comply with this Policy and with all applicable local ABC laws (see section 10 of this Policy).
Bribery is a criminal offence in most countries. In addition, some countries, notably Russia, the US and the UK, have enacted ABC laws which apply to the actions of individuals and companies even when they are outside the territory of that country. Breach of these laws can lead to very severe penalties for companies and individuals. For advice on local ABC laws please contact the Head of Legal.
OUR ABC PROCEDURES
The Company has developed and maintains procedures to mitigate bribery and corruption risks.
These procedures are formulated by periodically assessing the specific bribery and corruption risks faced by the Company.
High-risk situations may demand additional procedures such as enhanced due diligence, which could involve conducting direct enquiries, indirect investigations, or general research on proposed business partners such as agents, consultants, Joint Venture Partners, Persons act on behalf of the Company, contractors, suppliers and other third parties.
Where the Company believes that bribery and corruption risks are too high or cannot be mitigated effectively, the Company will not participate in the relevant transaction or arrangement. A transaction may be too high risk if it presents red flags (see section 13 of this Policy). In such cases, please consult with the Legal Department.
Regardless of the magnitude of the potential bribery risk, general procedures followed by the Company to mitigate bribery and corruption risks include:
- the involvement of the Company’s Senior Management, in particular in key decision- making and their overall responsibility for the Company’s ABC procedures;
- the communication of this Policy to all the Company employees;
- training of the Company officers and employees;
- transparency and full disclosure by the Company employees to the Legal Department, of any information relevant to bribery and corruption concerns;
- due diligence of existing and prospective Persons act on behalf of the Company and associated persons (see section 11 of this Policy);
- financial and commercial controls such as adequate book-keeping, auditing and approval of expenditure;
- decision making, such as delegation of authority procedures, separation of functions and the avoidance of conflicts of interest;
- mechanisms for reporting bribery and corruption concerns;
- enforcement, including disciplinary processes and sanctions for breaches of the Company’s ABC policies and procedures; and
- the consistent monitoring, review and evaluation of ABC policies and procedures.
What conduct is prohibited?
This Policy prohibits Active and Passive Bribery. In addition, the prohibitions apply to Bribery of a Public Official and Commercial Bribery.
It is always unacceptable for employees to:
- offer, promise, authorise or pay
- bribes, including facilitation payments, other improper payments or advantages
- to, or for the benefit of, or at the direction of, any person, including (but not limited to) employees, agents, consultants or officers of customers, suppliers, Joint Venture or other business partners, labour unions or Public Officials (of any jurisdiction).
It is also unacceptable for you to facilitate, mediate in, assist in or abet any such conduct.
A breach of this Policy will arise if an employee of the Company offers, attempts to pay or pays a bribe to another person, even if no benefit is received in return.
Employees of the Company are prohibited from:
- requesting, soliciting, agreeing to receive or receiving;
- a bribe from any person.
This prohibition applies whether the bribe is accepted for the employee’s own benefit or on behalf of another person.
A breach of this Policy will arise if a bribe is requested or solicited; there is no need for a bribe actually to be paid.
What is a bribe?
(a) Any advantage or donation
Anything of value, including financial and other advantages, can be a bribe. Examples of bribes include:
- Financial payments or promises of payments, whether in cash or cash equivalents (e.g. gift certificates);
- Gifts, entertainment and hospitality (e.g. travel, meals and lodging) (according to the Gifts and entertainment policy);
- Loans and valuable security;
- Property or any interest in property of any description;
- Protection from penalties and the release from any obligation;
- Anything provided for inadequate consideration;
- Provision of an internship, work experience or a temporary or permanent job offer (see section 9 of this Policy); and
- Political or charitable contributions (see section 8 of this Policy).
(b) Intended to induce improper conduct or to influence a Public Official
The provision of an advantage will be a bribe, no matter how small the value is, where there is an intention to:
- induce or reward improper conduct by the recipient or another person (Commercial Bribery); or
- influence a Public Official (improperly or otherwise) in the performance of his/her official duties in order to obtain or retain a commercial advantage (Bribery of a Public Official).
In either case, the intention to induce or influence could relate to action or inaction by the recipient of the advantage. This Policy does not, however, prohibit advantages which are provided or received transparently, in line with applicable ABC laws, and which are not, and could not be interpreted to be, intended to influence the recipient as described above.
It is not a defence to bribery to show that the giving of a bribe is customary in any local trade, vocation, profession or calling.
When is an advantage a bribe?
The provision of an advantage is likely to be a bribe if:
- it is illegal under any relevant ABC laws;
- it creates an obligation or perception of obligation for either party;
- it is intended to induce a person to act or refrain from acting in order to provide a specific benefit or general patronage to the person providing the advantage, or that person’s organisation;
- it is made to a Public Official to influence the official or servant in relation to his/her official functions, to expedite the performance of official duties, or to gain general patronage from the Public Official;
- it cannot be offered or accepted transparently;
- it is unreasonable in terms of value, frequency, or the manner in which it was provided;
- it would be likely to cause embarrassment to the individual concerned or to any company or associate of the Company if it was made public.
What else is prohibited?
It is also unacceptable for you to:
- engage in financial misconduct, including criminal acts such as theft of cash and false accounting, inside information trading, money laundering or the misappropriation of funds;
- use or offer privately to others access to or use of Company resources, including assets, funds or intellectual property, without advance authorisation from the Head of Legal;
- attempt to induce an individual employee of a commercial organisation, state-owned (either in full or in part) organisation or any local or foreign Public Official to do something illegal;
- offer, make, or authorise bribes, whether directly or indirectly, through any agent or Person act on behalf of the Company, either to:
- a local or foreign Public Official or any of their Affiliates; or
- any manager, officer or employee of a commercial or other organisation;
- offer or provide any unauthorised benefit (property or otherwise) to an employee of any Company competitor, supplier or customer which may result in an unfair competitive advantage and contravention of applicable competition regulations, such as any benefit which may lead to an improper advantage for the Company over its competitors;
- use any connections you may have with government bodies or Public Officials to procure improperly a competitive advantage in relation to the Company’s affairs;
- fail to report any indication of improper payments or favours in accordance with this Policy, or any circumstances where there are any grounds to suspect such conduct;
- engage in any behaviour, including making any fraudulent misrepresentation, to induce a party to obtain a financial or other benefit or to avoid an obligation;
- engage in any illegal acts, including those resulting in personal injury or damage to property, in order to obtain a financial or other benefit or to avoid an obligation;
- collude in improper procurement or contracting activities;
- attempt to suppress or conceal any of the above.
DEALING WITH PUBLIC OFFICIALS
While the principles of this Policy apply to dealings across both the public and private sectors, particular care is required when dealing with Public Officials and their Affiliates.
The Company prohibits the provision of:
- anything of value (see section 5 of this Policy);
- to any Public Official
- for the purpose of influencing such officials in the performance of their official duties (unless they are permitted to be influenced by the relevant applicable written law);
in order to obtain or retain a commercial advantage for the Company. Public Official is defined in this Policy as anyone in a legislative, administrative, or judicial position; public servants, military or similar officials of any kind; anyone that exercises a public function on behalf of any country, territory, municipality, or for any public agency or public enterprise;
or any person that exercises any function on behalf of any wholly or partially state or municipally owned organisation or public international organisation.
Examples of Public Officials include but are not limited to:
- Government and federal ministers;
- Employees of international public organisations, e.g. the UN, UNICEF, the Organisation for Economic Co-operation and Development (the OECD), the World Trade Organisation (the WTO) and the World Bank;
- Employees of government departments;
- Employees of companies owned, partially owned or controlled by the state;
- Doctors, nurses and teachers employed by the state; and
- Members of the police and the armed forces.
All employees must disclose any connections to Public Officials when they join the Company and on an annual basis via the annual compliance attestation. All employees must declare any changes in their connection to Public Officials as soon as they arise.
You must not make facilitation payments.
Facilitation payments are payments made to Public Officials to expedite routine official action (e.g. customs clearance). Facilitation payments are prohibited by this Policy and by many international ABC laws.
If you are requested by a Public Official to make a payment that you suspect may be a facilitation payment, you should not make the payment and should report the request immediately to the Head of Legal, who will advise on the course of action to take.
If you ever feel forced to make a facilitation payment because your safety, security or liberty is threatened, you may make the payment but should report the matter to the Head of Legal as soon as possible, who will decide on the appropriate action to be taken.
GIFTS AND HOSPITALITY
Bona fide gifts, hospitality and other associated expenditure that seek to improve the Company’s image, better present our services or establish cordial business relations, are an important and legitimate part of doing business. They include:
- Tickets to a sporting or cultural event;
- Meals and drinks;
- Gift certificates;
- Discounts and loans; and
- Travel expenses.
However, offering gifts or hospitality with the intention of influencing the recipient or any other person to act in an improper way or to influence a Public Official (improperly or otherwise) in the performance of official duties is strictly prohibited. Furthermore, ABC laws in many countries limit the ability of Public Officials to accept such gifts or hospitality.
Gifts and hospitality must therefore be for a legitimate business purpose, appropriate in value and frequency, aligned with customary business practice and in accordance with applicable laws. The requirements and procedures that must be followed when offering or accepting any gifts or hospitality are set out in the Gifts and entertainment policy.
You must never accept any gift or hospitality which you think has been offered with the intention of improperly influencing you or which you would not be comfortable reporting publically.
DONATIONS TO CHARITIES, RELIGIOUS ORGANISATIONS AND POLITICAL PARTIES
Donations to charitable, political or religious organisations may be perceived as bribes, if the donation:
- provides an indirect benefit (financial or otherwise) to a person who has requested or suggested it; or
- is provided to elected officials or individual members of political parties or organisations; or
- is made as a prerequisite for any Public Official or the counterparty taking any action or inaction.
Donations to charities, religious organisations and political parties are not generally prohibited; however the Company has in place appropriate and proportionate procedures to mitigate the bribery and corruption risks associated with such donations. These include:
- all donations made on behalf of the Company must be approved in advance and recorded by the Head of Legal;and
- training and support for employees implementing the relevant policies and procedures, and communication of those policies and procedures to ensure compliance is monitored and issues are reported.
Internships, work experiences temporary contracts and permanent job offers can all be a thing of value to the candidate or to someone connected to them (e.g. a relative). This means that the offer of such an employment opportunity, whether temporary or permanent, may be perceived as a bribe if it is offered with the intention of: (a) inducing someone to perform a duty improperly; or (b) influencing a Public Official in the performance of his duties; and in order to obtain a commercial advantage.
For example, offering an internship to the son of a client, in order to influence that client to award a contract to the Company, would breach ABC laws and be prohibited by this Policy.
To mitigate the risk that employment opportunities are offered improperly, all Relationship Candidates must be referred to the [Legal Department] and no employment offers should be made or promised without their written approval. The Human Resources department shall mitigate the bribery and corruption risks associated with hiring practices by conducting due diligence on potential candidates and ensuring they are qualified for the role. The Human Resources department will also maintain each employee’s employment records book and note any connections the employee has to Public Officials.
USE OF PERSONS ACT ON BEHALF OF THE COMPANY AND JOINT VENTURE PARTNERS
Third Party Risks
Persons act on behalf of the Company and Joint Venture Partners (for whatever reason and on whatever legal grounds, or as a matter of fact not law) can expose the Company to bribery risks. This is because under ABC laws the Company can be held liable for the actions of such third parties if they pay bribes in order to assist the Company to win or retain business.
The Company has therefore implemented the following procedures to mitigate the bribery risks associated with Persons act on behalf of the Company and Joint Venture Partners.
Requirement for Due Diligence and Monitoring of Persons act on behalf of the Company and Joint Venture Partners
Prior to the Company entering into a commercial relationship with any Persons act on behalf of the Company or Joint Venture Partners, it is important that sufficient due diligence is carried out to ensure that the manner in which they carry out their business is consistent with the Company’s commitment to conduct business ethically, with integrity and in line with applicable ABC laws. The requirements for conducting such due diligence will be set out by the Senior Management in case the Company would like to enter the relationship with any Person, act behalf of the Company or Joint venture Partners.
The nature of due diligence and monitoring will vary depending on the nature of the relationship with the partner or third party that you are dealing with (for example, whether the party is a legal entity or an individual).
It is therefore essential that anyone acting on the Company’s behalf is carefully diligenced and monitored to help mitigate these risks.
Further information on due diligence procedures can be found below.
Use of Persons act on behalf of the Company
The Company may use Persons act on behalf of the Company to help the company to win or retain business in some areas of its business.
The following principles must be applied whenever the Company engages with an Person act on behalf of the Company:
- the commercial rationale for engaging an Person act on behalf of the Company must be approved by the head of legal and appropriate business manager;
- due diligence should be applied to Persons act on behalf of the Company in accordance with the standards set out in section 12 of this Policy;
- if any of the red flags set out in section 13 of this Policy apply, Persons act on behalf of the Company will be deemed high risk and enhanced due diligence and monitoring requirements will be imposed;
- there must be a clear and transparent commercial rationale for engaging or dealing with any Person act on behalf of the Company that is positioned between the Company and a customer. This must be documented by the person in charge of the work with such counterparty;
- an Person act on behalf of the Company may only be retained on the basis of substantive services that it will provide. The provision of services that consist exclusively or primarily of relationship management with a customer or which are based on an Person’s act on behalf of the Company contacts with a customer are prohibited;
- the remuneration of any Person act on behalf of the Company must be commensurate with the level of services actually provided;
- any commission paid to Persons act on behalf of the Company must be properly approved, paid and recorded in accordance with the terms of the Person act on behalf of the Company agreement and any other legal requirements. You must ensure that any commission is reasonable and commensurate with the services the Person act on behalf of the Company has provided;
- you should not agree to use an Person act on behalf of the Company that has been specifically requested by the contracting entity unless you have received express written consent from the Legal Department];
- all Persons act on behalf of the Company must be engaged with a written contract which has been approved by the Legal Department. All contracts must require compliance by the Person act on behalf of the Company with ABC standards;
- all services provided by an Person act on behalf of the Company should be documented in accordance with the applicable accounting and document management rules and regulations; and
- particular care must be taken with respect to any agreement in connection with foreign governments, government-owned or controlled corporations, Public Officials or persons associated with such persons and entities.
Payments to Persons act on behalf of the Company
Employees are responsible for ensuring that commissions and other payments to Persons act on behalf of the Company, such as agents or other persons acting on behalf of the Company, under an approved Person act on behalf of the Company agreement are properly recorded, approved and paid in accordance with the Person act on behalf of the Company agreement and the restrictions of applicable law.
All such payments and transactions must be carried out through the bank named by the Person act on behalf of the Company and must comply with this Policy and any other applicable policies and procedures on commissions, fees and expenses in force from time to time.
All payments to Persons act on behalf of the Company must be made by bank transfer to the country in which the Person act on behalf of the Company has its principal place of business or performs substantial services on behalf of the Company. It is prohibited to make any cash payments to Persons act on behalf of the Company.
All payments to Persons act on behalf of the Company must be made against valid invoices, statements, transfer-acceptance acts and other documents, appropriately evidencing that services were in fact provided. Any payment to an Person act on behalf of the Company of a commission, service fee, or other fees (or the grant of discounts to distributors) which is not in accordance with the Person act on behalf of the Company agreement, or which is not in accordance with the Company’s general policies, procedures, and guidelines on commissions, fees and expenses must be approved in writing by both the Head of Legal and a representative of Senior Management.
In particular, you should not agree to make payments to a party other than the Person act on behalf of the Company itself and should not agree to any request from an Person act on behalf of the Company to make a payment to an offshore bank account. For example, where the registered Person act on behalf of the Company is a company, you must not make payments to individual employees or officers of the Person act on behalf of the Company.
The Company could be liable for the acts of a Joint Venture Partner if those acts were found to have been committed on its or the Joint Venture’s behalf.
Due diligence must be applied to proposed Joint Venture Partners prior to entering into Joint Venture arrangements with them.
The requirement to carry out due diligence applies regardless of whether the joint venture is of a contractual nature or involves the creation of a specific joint venture legal entity.
Joint Venture Partners must be selected on the basis of a clear business rationale based on the skills of the Joint Venture Partner. For example:
- technical expertise in matters where the Company does not have equivalent expertise;
- experience or existing presence in a local market;
- a requirement by the relevant government/customer for local partner involvement in a bid or project vehicle.
All Joint Ventures in which the Company participates must be subject to ABC policies and procedures. Those procedures can either be aligned to those of the Company or to those of the Joint Venture Partner, provided that the Joint Venture Partner’s procedures:
- are equivalent to those of the Company; or
- otherwise comply with all applicable ABC laws and standards, which should be confirmed by the Head of Legal.
Where a Joint Venture in which the Company participates has legal form, it will be the ultimate responsibility of the Directors (or equivalent) of the Joint Venture entity appointed by the Company to take reasonable steps to ensure compliance by the Joint Venture with anti-bribery and anti-corruption laws and standards.
Higher risk Joint Ventures, such as those involving Public Officials or their Affiliates as partners, should be subject to additional controls on a risk-based approach basis (see section 6 of this Policy).
DUE DILIGENCE AND MONITORING MEASURES FOR PERSONS ACT ON BEHALF OF THE COMPANY AND JOINT VENTURE PARTNERS
When should you carry out due diligence?
Due diligence measures should be applied before:
- engaging an Person act on behalf of the Company;
- entering a Joint Venture;
Due diligence measures should be applied using a risk-based approach in consultation with the Legal Department.
Where due diligence is required, it must be completed prior to:
- the signing of contracts with an Person act on behalf of the Company or Joint Venture Partner;
- any work being carried out by an Person act on behalf of the Company or Joint Venture Partner;
- engagement in any activities whatsoever by a Joint Venture arrangement (including marketing activities or the response to any RFP);
What Due Diligence Measures should be applied?
The type of due diligence measures required will vary depending on the nature of the relationship and counterparty. This Policy does not aim to set prescriptive detailed requirements for each and every type of counterpart the Company deals with.
You must seek advice from the Legal Department on the type of due diligence required for each counterparty. There is therefore flexibility for the precise measures to be determined on a case-by-case basis having regard to the nature of the counterparty, the relationship, and the transaction.
At a minimum, standard due diligence requires the Company to obtain and record:
- the commercial rationale for of the proposed relationship;
- the existence, legal structure and form of the relevant counterparty;
- the identity of the counterparty’s shareholders (at a minimum, all individuals and entities that ultimately own or control, directly or indirectly, 25% or more of the counterparty). If the counterparty’s shareholders are clearly holding companies, or if they are legal entities incorporated in low tax jurisdictions such as BVI, Seychelles, Cayman Islands, the identity of all the ultimate beneficial owners of the counterparty should be established;
- the identity of the directors of the counterparty;
- any connections between the counterparty (including its shareholders, directors and officers) and government bodies or Public Officials;
- the level of proposed remuneration, which must be commercially justifiable; and
- the nature of any ABC procedures that the counterparty has in place
High Risk Situations
If any red flags are present (see section 13 of this Policy) or the circumstances are deemed high risk for some other reason, it may be appropriate to take additional measures, such as:
- interviewing relevant personnel of a counterparty (at their offices wherever possible) to better understand the compliance environment in which the counterparty operates;
- commissioning third party enhanced due diligence reports on the counterparty to establish reputation, ownership structure, history etc; and
- performing further due diligence on the reputation of the counterparty and its perception by others in the market.
Records of the due diligence measures applied must be retained for a period of 5 years following the termination of the relationship with the counterparty.
The Legal Department is responsible for ensuring that ABC matters are appropriately addressed in contractual agreements with counterparties.
The contractual provisions that apply in a particular case will be determined with regard to the nature of the counterparty, the risks they pose, and the nature of the transaction.
The contractual provisions may include:
- obligations on the counterparty to comply with applicable ABC laws and standards;
- obligations on the counterparty to comply with this Policy;
- representations that the counterparty has not and will not engage in unlawful conduct;
- disclosure obligations where relevant unlawful conduct is detected;
- rights for the Company to monitor activities and inspect books and records;
- requirements for Persons act on behalf of the Company or relevant employees of the counterparty to undergo ABC training;
- rights for a Company representative to be present at all meetings held on behalf of a Joint Venture, particularly where those meetings may constitute higher risk interactions such as meetings in a sales context or meetings with Public Officials;
- legal remedies available to the Company in case of breach of any of the obligations, representations and/or requirements set out above.
Once established, a relationship with a Joint Venture Partner or Person act on behalf of the Company should be actively monitored in order to ensure that the partner is complying with the law and its contracted obligations. The Company will avoid dealing with Persons act on behalf of the Company or Joint Venture Partners known to be paying bribes.
The monitoring measures that need to be taken will inevitably vary depending on the nature of the relationship and the counterparty. This Policy does not aim to set prescriptive standards of monitoring that should be applied to each particular relationship or type of relationship. As in the case of due diligence, there should be flexibility for the monitoring measures applied to take into account the risks posed by a particular relationship or counterparty. The measures to be taken in each particular case should be determined by [the Responsible Head/ appropriate business management] in conjunction with the Legal.
Monitoring measures may however include:
- scrutiny of payments made to sub-contractors, Persons act on behalf of the Company and other third parties;
- requiring annual certification by counterparties of compliance with ABC laws;
- attendance of the Company’s Legal representative(s) at meetings deemed to be high risk from a compliance perspective between:
- an Person act on behalf of the Company or a Joint Venture Partner; and
- the Company’s employees or third parties.
- regular or occasional meetings with counterparties and review of recent new business arrangements and associated sales processes.
RED FLAG SITUATIONS
Certain factors or situations raise red flags, which indicate a potential for ABC violations.
Red flags indicate issues of concern that require further consideration but in themselves may not be sufficient to found any grounds for knowledge or suspicion of wrongful activities.
The following list does not contain all possible red flags or unusual circumstances that may indicate a problem, but these items, among others, should be investigated and reported, as outlined below.
- Any payment that is not made against an invoice and/or supported by documentary evidence that goods or services were, in fact, provided;
- Payments or commissions to Persons act on behalf of the Company or counterparties above market rate;
- Requests for payments to in cash, to or through a third party, or to jurisdictions other than the country where services, and the underlying contract, are performed or where the Person act on behalf of the Company has its principal place of business (especially to a bank secrecy jurisdiction, such as Cyprus, the Cayman and British Virgin Islands);
- Requests for payments where the payment form does not correspond to the substance of the payment (e.g. a capital contribution instead of a fee payment);
- The reputation of a country or a Public Official for corruption. While generally this is not sufficient by itself to warrant the requisite knowledge of a bribe payment, it does suggest enhanced due diligence should be imposed. Transparency International publishes annually a Corruption Perceptions Index, which can be found at: http://www.transparency.org/policy_research/surveys_indices/cpi;
- Reports of improper payments or other unethical business practices by an Person act on behalf of the Company or another third party;
- A request by an Person act on behalf of the Company for an unusual or substantial commission, up-front payment or success bonus, or unusual discounts for distributors;
- A request by an Person act on behalf of the Company to engage another a third party, where the role of such third party and the reason is not clear;
- An invoiced amount from an Person act on behalf of the Company that exceeds the agreed upon amount or reflects undocumented expenses or expenses of an unreasonable amount or kind;
- Requests by foreign government decision makers to use the services of a specific Person act on behalf of the Company, particularly in instances where the rationale for using an Person act on behalf of the Company is not obvious;
- Use of more than one Person act on behalf of the Company on a particular contract where aggregate commissions exceed the market rate (or legal ceiling) in the country and the economic rationale for the use of a second Person act on behalf of the Company is inadequate, illusory or absent.
- The Person act on behalf of the Company does not appear to have the qualifications or resources to perform the services offered;
- The Person act on behalf of the Company is a foreign Public Official or a person employed by a foreign government agency or instrumentality who works for the Person act on behalf of the Company;
- The Person act on behalf of the Company is an active or retired Public Official or an Affiliate of a Public Official, or such third party company is owned in whole or in part by a Public Official or Affiliate of a Public Official;
- The Person act on behalf of the Company or a partner or a director, shareholder or employee of the Person act on behalf of the Company partner’s firm has a personal, family or business relationship with a foreign Public Official;
- There are suspicions about the reputation of an Person act on behalf of the Company or partner because there are rumours of connections, and he or she is less than forthcoming with information regarding these matters;
- The Person act on behalf of the Company refuses to accept an appropriate ABC compliance clause in the contract;
- Lack of transparency in expenses and accounting records;
- An Person act on behalf of the Company or partner is known to provide frequent and lavish entertainment, gifts, hospitality or use of corporate facilities to foreign Public Officials or their Affiliates in their own country or elsewhere;
- The Person act on behalf of the Company makes reference to contributions to political, religious or charitable organisations as a way of influencing official action.
TRAINING AND COMMUNICATION OF THIS POLICY
Certain employees of the Company that are identified as high risk are required to undertake ABC training. This includes temporary employees where relevant.
Where necessary, training shall be tailored to the specific risks associated with specific roles within the Company.
The Company may also require its Persons act on behalf of the Company and Joint Venture Partners to undertake training.
Training will be updated periodically as deemed necessary.
A copy of this Policy is available on the Company’s intranet website. Contact details for the Legal Department can also be found there.
This Policy may be disclosed to our customers, suppliers, sub-contractors or Persons act on behalf of the Company.
There may be circumstances in which we are required to disclose this Policy, for example in connection with a response to an RFP.
REPORTING AND INVESTIGATING CONTRAVENTIONS
If any person becomes aware of or suspects a breach of this Policy by an employee or associate of the Company or a third party undertaking business on behalf of the Company, this must immediately be brought to the attention of the Legal. The Company appreciates that you may not be qualified to judge on whether the particular action represents a breach of this Policy and therefore treats any report as an indication and not an accusation.
Your report will be treated confidentially, to the extent reasonably practicable. You may discuss the matter with your line manager if you wish.
You will not suffer any adverse consequences from the Company if you report suspected unlawful conduct.
You must not at any time destroy any material that might be of use to an investigation of a breach of this Policy, or make any disclosure to any person that might be prejudicial to such an investigation.
You must comply with any requests by the Company to provide all relevant information, materials or documents related to an investigation of a breach of this Policy.
Any reports made under this Policy will be promptly and thoroughly investigated.
Approved by the Order of the General Director of MAXIMA GROUP LLC No. 18/1 dated April 25, 2017