Integrity and Compliance Taskforce

B20 Italy Integrity and Compliance Policy Paper 2020

Excerpts:

POLICY RECOMMENDATIONS AND ACTIONS

Recommendation 1: Responsible conduct through the Procurement Cycle

Policy Actions:

1.1: The efficiency within public procurement systems contributes to lowering the risk of bribes made to expedite the performance of public officials of a non-discretionary nature.

1.2: Digitizing administrative processes to reduce manual intervention improves the efficacy of audit, compliance monitoring and control activities in detecting irregularities.

1.3: Adopting high-quality standards of integrity and compliance programs by enabling timely access to public information and enhancing enforcement and supervisory authorities and designing and implementing effective systems to facilitate reporting of potential corruption concerns, facilitates SMEs participation.

Recommendation 2: Sustainable governance in business

Policy Actions:

2.1: Promoting good and transparent corporate governance systems, to be defined by companies internally, which clearly articulate the roles, responsibilities and accountabilities of the governing body, management and internal audit, may attract investors that nurture interest in positive impact investing.

2.2: Fostering the adoption of supportive measures such as non-financial reporting, with uniform requirements across jurisdictions, to ease the assessment and mitigation of ESG issues.

2.3: Promoting and fostering the contribution to sustainable development by offering training and guidance on Responsible Business Conduct (RBC), while considering the appointment of an Integrity & Compliance Officer also functioning as a positive example to be emulated across the entire supply chain. Consideration should be given to design measures which are also easily adaptable by SMEs capacities.

Recommendation 3: Cooperative compliance models and rewarding systems Policy Action

Policy Actions:

3.1: Reinforcing the concept of reward through promoting the adoption of rules, effective measures and inclusive cooperation to improve the exchange and availability of information among stakeholders from the private-public worlds who aim to increase compliance and good conduct.

3.2: Implementing due diligence policies within hiring companies and their supply chain when selecting, monitoring, reviewing and auditing contractors, and managing associated risk profiles, supports SMEs in the due diligence of their commercial partners.

3.3: Improving compliance within the private and public sector, reinforcing and rebuilding trust in public and private institutions, through, for example, the adoption of effective and efficient whistle-blower reporting and protection systems supported by innovative communications technology.

Recommendation 4: Beneficial ownership transparency

Policy Actions:

4.1: Fostering the adoption of innovative digital technologies allows information on beneficial ownership to be accessed and shared reliably.

4.2: Increasing transparency around BO information, improving third-party risk management and ensuring the accuracy of data stored in digital national public registers is key.

4.3: Consistently promoting the sharing of up-to-date information regarding legal arrangements, preventing the misuse of bearer shares and nominee shareholders or directors, while fostering companies’ support with creating fairness through a set of common rules and standards levels the playing field.