The compliance officer: guardian of integrity or a brake on business?

In the modern corporate world, where rules are becoming ever more complex, one function is coming to the fore: the compliance officer. Although many still see the compliance officer as someone who only “says no” and complicates procedures, the reality is quite different. As Warren Buffett put it: “In looking for people to hire, you look for three qualities: integrity, intelligence and energy. And if they don't have the first, the other two will kill you.”

That is the very essence of compliance: ensuring that the company's integrity remains intact as it grows.

What does a compliance officer actually do?

A compliance officer is not the same as internal audit. While audit looks back (what happened), compliance looks ahead and puts in place systems that prevent violations. The role can be summarised in three key pillars:

Guide and educator: the compliance officer sets principles and delivers training. Employees must know where the line lies between aggressive sales and a breach of the code of ethics.

Third-party controller: a company can suffer because of a mistake by its partner or supplier. Compliance introduces due diligence processes and minimum standards for working with third parties in order to avoid risks such as corruption and bribery.

Incident investigator: when a report arrives (through the whistleblowing channel), the compliance officer conducts the investigation, makes recommendations and monitors their implementation, including disciplinary measures.

Global risks: the FCPA and the fight against corruption

For large companies operating internationally, the risks are enormous. The US Foreign Corrupt Practices Act (FCPA) is a law that reaches companies around the world. It strictly prohibits giving bribes to government officials in order to obtain business. The penalties are not only financial; they include a loss of reputation built over decades.

Compliance introduces due diligence processes and minimum standards for working with third parties in order to avoid risks such as corruption and bribery.

Slaviša Cincarević

A compliance programme must be designed to meet these global standards through:

• accurate bookkeeping,
• adequate internal controls,
• clearly defined anti-corruption policies (ABC: anti-bribery and corruption).

Compliance culture: more than paper

The greatest challenge for any compliance officer is building a culture. It is not enough to have a written code of ethics if it sits in a drawer. The key elements of an effective programme are:

Monitoring and testing: constant checks on whether controls work in practice.

Onboarding standards: screening new employees and partners before they enter the system.

Cooperation and response: a rapid response to every incident report.

Conclusion: who are we really?

Perceptions of compliance officers vary, from seeing us as police officers to regarding us as superheroes who save the company from multimillion fines. The truth lies in between: we are partners to the business. Our basic role is to be guides who enable the company to navigate risky waters without fear of sinking because of breaches of law or ethics.

A final message: be a guide, train people, control processes and always report irregularities. Integrity has no price, and compliance is there to preserve it.

This text expresses the author's professional opinion and does not constitute legal advice for a specific case.