Author: Maryna Pokotylo, Partner at F&P
Anti-corruption policy in Ukraine is not only a crucial component of state policy but also an integral element of every organization striving to be transparent, effective, and responsible. In light of ongoing changes in legislation and the growing demands for corporate accountability, anti-corruption programs have become mandatory for enterprises and organizations of all forms of ownership, as well as for public institutions.
1. Legislative Framework for Anti-Corruption Programs in Ukraine
According to national legislation, the main documents regulating anti-corruption activities in Ukraine are:
- The Law of Ukraine “On Preventing Corruption” (2014), which sets out the framework for combating corruption at all levels of governance, including in the private sector.
- The Law of Ukraine “On Anti-Corruption Programs for Enterprises” (2020), which requires legal entities to develop internal anti-corruption programs.
- Decisions and recommendations from the National Agency for Prevention of Corruption (NAPC), which provide detailed regulations on how to implement these programs and ensure their compliance with legislative requirements.
These legislative innovations provide the necessary legal foundation for creating and implementing anti-corruption programs, offering legal entities clear guidelines on the process of establishing such initiatives.
2. Key Elements of an Anti-Corruption Program
According to current legislation, an anti-corruption program must include the following key components:
- Anti-Corruption Policy: This document forms the foundation of the program. It must define clear behavioral rules for all employees and managers, including a ban on any form of corrupt practices.
- Risk Assessment of Corruption: A crucial stage is identifying specific corruption risks that arise in the course of the organization’s activities. Assessing these risks helps understand where and when potential corruption threats may occur.
- Structure of the Body Responsible for Implementing the Program: As required by law, the enterprise must designate a person or department responsible for the implementation and oversight of the anti-corruption program. This could be a dedicated committee or a compliance officer.
- Monitoring and Effectiveness Assessment Procedures: The anti-corruption program must include mechanisms for continuous monitoring of its implementation, including regular audits and assessments of the effectiveness of the measures taken.
- Whistleblowing Mechanisms and Protection: For anti-corruption efforts to be effective, it is important to provide employees with anonymous channels to report violations. This also includes legal protection for whistleblowers from retaliation.
- Employee Training and Awareness Raising: One of the key elements is providing training programs for staff to ensure they are familiar with anti-corruption standards and know how to respond to potential violations.
3. Process of Implementing an Anti-Corruption Program
Developing and implementing an anti-corruption program is a multi-step process that requires careful organization and planning. The main stages include:
- Risk and Process Assessment: The organization must begin by conducting an internal audit to identify corruption risks and analyze existing management mechanisms.
- Developing Anti-Corruption Policies: Internal documents must be created to regulate employee behavior and processes susceptible to corruption risks.
- Employee Training: It is important to ensure proper training for staff, so that every employee is aware of anti-corruption standards and knows how to respond to potential violations.
- Implementation of Control Mechanisms: Establishing continuous monitoring and checks to ensure the enforcement of anti-corruption measures.
- Effectiveness Evaluation and Program Adaptation: After implementation, it is essential to regularly assess the effectiveness of the program and make necessary changes based on new legislative requirements or internal processes.
4. Recent Changes in Legislation
Recent changes to Ukrainian legislation regarding anti-corruption initiatives, particularly since 2023, have strengthened the accountability of companies and organizations in combating corruption. Notably, there is now a greater focus on ensuring that anti-corruption programs are regularly updated and in full compliance with legal standards, given the increased penalties for violations of anti-corruption laws.
5. Why You Should Contact the Legal Firm “Fedoryshyn & Partners”
The development and implementation of an effective anti-corruption program is a complex and critical process that requires a professional approach and detailed legal support. Our law firm “Fedoryshyn & Partners” has extensive experience in advising and assisting businesses on anti-corruption legislation. We can help you develop and implement a program that complies with all current legal requirements while promoting transparency and efficiency within your organization.
Contact us for qualified legal assistance in implementing anti-corruption measures and ensuring the legal security of your business.
