Compliance is an important topic not only for large corporations but also small and medium-sized enterprises that want to avoid breaking the law and incurring penalties as a result.

Compliance with contractual provisions and legislation is a key issue for every business, irrespective of its size. Businesses need to make sure that each of their employees consistently complies with the law. We at the commercial law firm MTR Rechtsanwälte note that efficient compliance management systems can ensure that violations are not committed by anyone from within the company.

It is particularly in difficult economic times that those in charge of companies will take any action to potentially save the business. The ongoing coronavirus pandemic has shed light on the speed with which a company can find itself in dire straits, even through no fault of its own.

Germany’s federal government has come up with a range of extensive support measures for businesses. Those seeking to benefit from these measures and apply for assistance must make sure that the information is accurate and complete. Anyone making false claims renders themselves liable to prosecution for potentially committing fraud, or more specifically subsidy fraud.

Of course, an effective compliance management system is essential not only during times of crisis but at any given time, and all the more so in the case of businesses that operate internationally and maintain cross-border business relationships. These businesses also need to comply with international regulations and are at greater risk of violating laws.

With small and medium-sized enterprises also increasingly operating internationally, the issue of compliance continues to grow in importance for them as well. Effective compliance management systems ensure that contractual provisions and statutory regulations are complied with and that no violations are committed by employees from within the company. However, such a system also needs to be tailored to a business’s specific needs and the various positions within the workplace lest it undermine the strengths of the company, such as, for instance, its flexibility. 

A key point when it comes to compliance is understanding that it is not primarily concerned with surveillance and monitoring but instead mainly with preventing the business from incurring economic losses.

Lawyers with experience in the field of corporate criminal law can advise on implementing an effective compliance management system.

https://www.mtrlegal.com/en/legal-advice/corporate-criminal-law/compliance.html