31 Days to a More Effective Compliance Program: Day 3 - 2023 Evaluation of Compliance Programs: Messaging Apps, Internal Controls and Adequate Compensation

31 Days to a More Effective Compliance Program: Day 3 – 2023 Evaluation of Compliance Programs: Messaging Apps, Internal Controls and Adequate Compensation

January 3, 2024

Messaging Apps

There was a significant addition to the language around messaging apps. The ECCP opened this section by noting, “Messaging applications have become ubiquitous in many markets and offer important platforms for companies to achieve growth and facilitate communication.” For any company under investigation or in a FCPA enforcement action, the DOJ will evaluate its “policies and mechanisms for identifying, reporting, investigating, and remediating potential misconduct and violations of law governing the use of personal devices, communications platforms, and messaging applications, including ephemeral messaging applications.”

Internal Compliance Controls

Under Section II, entitled Is the Corporation’s Compliance Program Adequately Resourced and Empowered to Function Effectively? We find the new language, “In this regard, prosecutors should evaluate a corporation’s method for assessing and addressing applicable risks and designing appropriate controls to manage these risks.” This simple sentence packs quite a punch as it requires both appropriate internal compliance controls and then monitoring of those controls to see if they are managing the risks identified in the risk assessment.

Adequate Compensation and Salary/Bonus Review for Compliance

Under Section III, there is a significant new addition to the ECCP. It forces a company to adequately compensate those employees who investigate and pass judgment on misconduct. But it is more than simply adequate compensation, as it also requires a company not to retaliate via low salaries, limited raises, or other compensation for doing their jobs as compliance officers. In other words, if the CEO is being investigated by compliance, that same CEO should not be setting or reviewing the salary of the CCO or those doing the investigation. This mandates that the DOJ review the entire corporate organization on these issues.

Three key takeaways:

1. Communications compliance will be a key issue for compliance professionals going forward in 2024.

2. You must have both appropriate internal controls and ensure they are functioning.

3. In addition to adequate resources, a compliance function must be shown to adequately pay, promote, and protect those involved in compliance investigations.