Círculo Legal Hosts Madrid Event Urging Stronger Compliance

In a recent Madrid event organized by Círculo Legal and the In Law Alliance of Lawfirms, legal experts highlighted the critical need for enhanced control mechanisms and effective compliance plans to combat corruption.

“During the eurozone crisis, many Spanish companies, inexperienced in international markets, entered emerging economies where corruption was rampant, especially in securing public contracts,” noted Diego Cabezuela, senior partner at Círculo Legal and president of In Law Alliance of Lawfirms.

Despite these challenges, Cabezuela expressed optimism, citing initiatives by banks and governments committed to eradicating corruption. “While no legal norm can eliminate corruption overnight, it is possible to compete ethically and legally, even in difficult markets,” he affirmed.

Alejandro Luzón, head of the Anti-Corruption Prosecutor’s Office, emphasized the OECD’s crucial role in monitoring corporate compliance programs to combat international bribery. “Understanding the pathway of international bribery is essential to tackling it,” Luzón stated.

Addressing International Challenges

Teresa Mínguez of the Madrid Bar Association stressed the need for new control mechanisms, noting that corruption reflects a country’s ethics and impacts globally. Félix García Giralda of ICEX Alumni reminded companies of the importance of understanding different jurisdictions’ regulations to avoid legal pitfalls in international markets.

During the event’s first roundtable, Felipe García of Círculo Legal highlighted the importance of the compliance officer’s independence. Néstor Aparicio of the World Compliance Association argued that the CEO should lead compliance efforts to ensure authority is maintained regardless of company performance.

A second roundtable discussed international bribery risks, featuring experts from FERROVIAL, CEPSA, and In Law Alliance. They stressed that corruption arises from factors like money and greed, not specific sectors or countries. Cristina Fabre of CEPSA emphasized the need for a continuous and genuine compliance culture.

Francisco Santillán, vice president of In Law Alliance, concluded by asserting that efforts to combat corruption must be genuine and widespread, avoiding any tolerance or complicity in corrupt practices.