The Russian Ministry of Labour has issued recommendations for assessing and preventing corruption in companies
Law firm Pepeliaev Group advises that the Ministry of Labour and Social Development of the Russian Federation (the “Ministry of Labour”) has published a number of documents dedicated to preventing corruption in companies.
In order to prevent and fight corruption in the corporate sector the Ministry of Labour has issued:
The above documents emphasise how important it is to develop an anti-corruption policy and a system of internal regulations for preventing corruption within companies. They also contain detailed recommendations regarding the following issues:
Please be reminded that if a corruption offence is identified in the form of illegal remuneration on behalf of a legal entity, the company could face a fine in an amount from RUB 1 million to RUB 100 million and even higher (article 19.28 of the Russian Code of Administrative Offences). According to the information of the Russian General Prosecutor’s Office, in 2018 alone the amount of fines under this ground was RUB 691,000,000. A fine for illegal employment of a former government official may amount to RUB 500,000 for a company and RUB 50,000 for a responsible officer (article 19.29 of the Russian Code of Administrative Offences).
International corporations also face a risk of liability being imposed under the American FCPA and the UK Bribery Act, under which the sanctions may exceed tens of millions of US dollars.
We recommend that companies assessing corruption risks should take into account the types of their activities in order to eliminate administrative liability, including in connection with a violation of formal requirements. In particular, it is important to analyse and assess possible corruption risks in a company’s activity (by drafting a map of corruption risks), to develop and approve necessary policies aimed at preventing corruption cases, and to inform the employees about such policies and rules.
We are ready to provide the necessary legal support in the development and practical implementation of the necessary anti-corruption policies, internal regulations, and policies with respect to applying incentive and liability measures to employees when they perform or violate their duties in connection with preventing corruption
In order to prevent and fight corruption in the corporate sector the Ministry of Labour has issued:
- The Information Document “Measures for preventing corruption in companies” ;
- The Guide “Enshrining the duties of a company’s employees associated with preventing corruption, their liability and incentivisation”;
- Recommendations concerning the procedure for carrying out an assessment of corruption risks in a company.
 | Please be reminded that all companies, irrespective of their forms of ownership, must develop and take anti-corruption measures [1]. These documents were issued because the 2013 Methodical Guidelines of the Ministry of Labour have become outdated and they are aimed at creating a uniform methodological basis for the assessment by companies and law enforcement authorities of anti-corruption measures being implemented. |
The above documents emphasise how important it is to develop an anti-corruption policy and a system of internal regulations for preventing corruption within companies. They also contain detailed recommendations regarding the following issues:
- assessing corruption risks;
- preventing, identifying and settling a conflict of interests;
- implementing anti-corruption standards within the framework of adopted codes of conduct;
- stimulating the employees to comply with the anti-corruption policy;
- checking contracting parties, including an anti-corruption audit;
- internal control and accounting; and
- dealing with law enforcement authorities and other state bodies for anti-corruption purposes.
| The development and implementation of anti-corruption provisions within companies not only ensures the prevention of corruption events featuring employees, but also allows risks of liability to be mitigated for the company as well as for its management. |
What to think about and what to do
In addition to criminal liability for corruption activities, administrative liability is provided for a violation of anti-corruption requirements. Prosecutor’s checks of companies with regard to the implementation of anti-corruption measures have become widespread.
Please be reminded that if a corruption offence is identified in the form of illegal remuneration on behalf of a legal entity, the company could face a fine in an amount from RUB 1 million to RUB 100 million and even higher (article 19.28 of the Russian Code of Administrative Offences). According to the information of the Russian General Prosecutor’s Office, in 2018 alone the amount of fines under this ground was RUB 691,000,000. A fine for illegal employment of a former government official may amount to RUB 500,000 for a company and RUB 50,000 for a responsible officer (article 19.29 of the Russian Code of Administrative Offences).
International corporations also face a risk of liability being imposed under the American FCPA and the UK Bribery Act, under which the sanctions may exceed tens of millions of US dollars.
We recommend that companies assessing corruption risks should take into account the types of their activities in order to eliminate administrative liability, including in connection with a violation of formal requirements. In particular, it is important to analyse and assess possible corruption risks in a company’s activity (by drafting a map of corruption risks), to develop and approve necessary policies aimed at preventing corruption cases, and to inform the employees about such policies and rules.
Help from your adviser
Pepeliaev Group’s lawyers have all-round experience of handling issues relating to the implementation of anti-corruption compliance measures in major companies, conducting anti-corruption investigations, and participating in complicated labour disputes.
We are ready to provide the necessary legal support in the development and practical implementation of the necessary anti-corruption policies, internal regulations, and policies with respect to applying incentive and liability measures to employees when they perform or violate their duties in connection with preventing corruption
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[1] Article 13.3 of Federal Law No. 273-FZ “On anti-corruption activities” dated 25 December 2008 as amended by Federal Law No. 231-FZ dated 3 December 2012.