Compliance and why is it needed?

Compliance is a business function of a company that allows you to determine whether the activity corresponds to: 

1) external requirements (anti-corruption legislation of the Republic of Kazakhstan, other applicable legislation, requirements of stakeholders and other interested parties); 

2) internal requirements (internal documents of the company).

The need for compliance is due to the fact that in case of non-compliance with external or internal requirements of the company, material (fines, losses, etc.) or non-material damage (loss of business reputation, etc.) may be caused, employees and officials of the company may also suffer (disciplinary, administrative, criminal liability).

Who should deal with compliance? In fact, every employee is involved in the field of compliance, starting with hiring. After all, the activity of any company is associated with certain requirements of the legislation of the Republic of Kazakhstan and the requirements of internal documents. The coordination of the compliance function is usually carried out in the company by the Compliance Service or Compliance officer.

The importance of compliance should be communicated to employees by the company's management.

Corruption, the basic concepts of the Law of the Republic of Kazakhstan "On Anti-corruption"

The main regulatory legal act regulating the issue of combating corruption in the Republic of Kazakhstan is the Law of the Republic of Kazakhstan dated November 18, 2015 "On Anti-corruption" (hereinafter – the Law).

The law is aimed at preventing corruption, forming a legal culture among citizens, and the inadmissibility of corruption in all its manifestations.

In order to move on to some of the main provisions of the Law, it is necessary to understand what is corruption?

In accordance with subparagraph 6) of Article 1 of the Law, corruption is understood as the illegal use by persons holding a responsible public position, persons authorized to perform public functions, persons equated to persons authorized to perform public functions, officials of their official (official) powers and related opportunities in order to obtain or extract personally or through intermediaries of property (non-property) benefits and advantages for themselves or third parties, as well as bribery of these persons by providing benefits and advantages.

A person equated to persons authorized to perform state functions is a person elected to local self-government bodies; a citizen registered in accordance with the procedure established by the law of the Republic of Kazakhstan as a candidate for President of the Republic of Kazakhstan, deputies of the Parliament of the Republic of Kazakhstan or maslikhats, akims of cities of district significance, settlements, villages, rural districts, as well as members of the an elected local self-government body; an employee permanently or temporarily working in a local self-government body, whose remuneration is made from the state budget of the Republic of Kazakhstan; a person performing managerial functions in a state organization or a quasi-public sector entity, as well as a person authorized to make decisions on the organization and conduct of procurement, including state, or responsible for the selection and implementation of projects financed from the state budget and the National Fund of the Republic of Kazakhstan, holding a position not lower than the head of an independent structural unit in these organizations, employees of the National Bank of the Republic of Kazakhstan and its departments; employees of an authorized organization in the field of civil aviation, acting in accordance with the legislation of the Republic of Kazakhstan on the use of the airspace of the Republic of Kazakhstan and aviation activities, employees of the authorized body for regulation, control and supervision of the financial market and financial organizations.

In other words, in relation to the organization, employees of the organization performing managerial functions dealing with procurement and financing projects related to the state budget or the National Fund should not use the powers and opportunities provided to them by the legislation of the Republic of Kazakhstan and internal documents of the company in order to obtain any benefits for themselves or third parties.

To do this, the Law presupposes the adoption by these persons of anti-corruption restrictions, ensuring intolerance to the facts of corruption, preventing conflicts of interest, etc.

In case of violation of the requirements of the Law by these persons, liability is provided, up to criminal (Articles 361-371 of the Criminal Code of the Republic of Kazakhstan).

In order to prevent corruption, each employee or contractors of the company have the right to report such facts via the hotline of SWF Samruk-Kazyna JSC, posted on the website of KMG Drilling & Services LLP . The confidentiality of the source is guaranteed.