As an accompaniment to our biweekly series on “What Every Multinational Company Should Know About” various international trade, enforcement, and compliance topics, below find an update to our series on compliance checks that every multinational company should consider. Give us two minutes and we’ll give you five suggested compliance best practices that will benefit your international regulatory compliance program.

Setting up an international compliance infrastructure involves establishing systems, processes, and resources to ensure compliance with laws, regulations, and ethical standards across multiple jurisdictions. Here are some best practices for setting up an international compliance infrastructure:

1. Establish a Compliance Framework: Develop a global compliance framework that outlines the organization’s approach to compliance, including policies, procedures, controls, and reporting mechanisms. Ensure that the framework is flexible and scalable to accommodate diverse compliance requirements.
2. Appoint Compliance Leadership: Appoint a Chief Compliance Officer or compliance leadership team responsible for overseeing the organization’s compliance efforts on a global scale. Provide the necessary authority, resources, and support to empower the compliance function.
3. Establish Regional Compliance Teams: Establish regional compliance teams or liaisons in key geographic regions to support compliance efforts locally. These teams can provide insights into local compliance risks, facilitate communication, and ensure alignment with global compliance standards. Clearly define roles, responsibilities, and reporting lines for compliance personnel across different regions and business units. Ensure that compliance responsibilities are integrated into job descriptions, performance evaluations, and incentive structures.
4. Implement Reporting Mechanisms: Establish reporting mechanisms, such as hotlines, whistleblower channels, or anonymous reporting systems, for employees to raise concerns about potential compliance violations. Ensure confidentiality, anonymity, and protection against retaliation for whistleblowers.
5. Leverage Technology: Use technology solutions, such as compliance management software, data analytics tools, and risk assessment platforms, to streamline compliance processes, enhance monitoring capabilities, and facilitate reporting and documentation.

Find the previous article in this series here