On 1 March, the “Corporate Governance Centre” NGO launched the 2nd training on “Anti-Corruption Compliance in Business” for the representatives of Business Companies in the scope of the “Armenia: Promoting Anti-Corruption Conduct and Reforms” Project implemented by the “Centre for International Private Enterprise”, the “Armenian Lawyers’ Association” NGO, the “Corporate Governance Centre” NGO and the “Yerevan Chamber of Commerce and Industry” with financial support of the National Endowment for Democracy.

The trainer, Mr. Aharon Chilingaryan, member of Board of the Armenian Institute of Directors, which is the sister organisation Corporate Governance Centre, the partner of BDO Accounting, Tax & Legal CJSC, said that the participants were mostly aware of the anti-corruption program, they were interested and willing to move forward, to invest the program in their companies.

“During the course, we discuss the harm that corruption cause to business companies, how to create an anti-corruption compliance program, how to work, assess, whether it works well or not. I think if the organization wishes, in case of good work, the program can be developed within 3 months, and it will take up to two years to complete it,” Aharon Chilingaryan said.

According to him, the anti-corruption compliance program is one of the preconditions for the promotion of large companies. “During our previous training, a representative of one of the banks mentioned that they currently develop an anti-corruption compliance program because it was a mandatory requirement for foreign partners,” he said.

Anatoliy Tirosyan, Chief of Executive Staff and Compliance Department at INECO Bank, noted that the compliance function is very important for the company, and its importance is increasing day by day and activities are underway to implement the program in the bank.

“There is a consensus on the implementation of the program between the shareholders, the board and the management of the bank. This function must develop, must meet both the Armenian and world best standards. We do our best for it,” he said.

According to Anatoliy Tirosyan, the employees of the bank are well aware of the anti-corruption compliance program and, according to the rules and procedures of the bank, the new employee passes a special program, the mandatory part of which is the compliance function. According to him, the implementation of the compliance program creates favourable conditions not only for the internal circles of the company, but also for the external relations. “Banks in Armenia cooperate with the public, clients and shareholders. Therefore, this is not only an internal function but also a tool to influence and improve the environment of the bank. The banks that have the compliance unction, and in case they use it in cooperation with their customers, sooner or later, we and the society, we and the public sector will start talking in the same language,

The compliance program gives confidence to the company and not only to its partners, but also to its customers, said Marietta Melkonyan, who is an employee of the Ethics and Compliance Department at «VEON Armenia» CJSC (trademark Beeline). She noted that the anti-corruption compliance program had been introduced in the organization since 2017. According to her, all employees of the company are aware of the program. “We have a specially designed plan for the year, according to which employees are trained. The tendency to implementing the program is currently in process all over the world and if you do not want to stay in place and intend move forward as an organization, you should develop anti-corruption compliance programs and work with larger organizations and catch up with them,” she said.

Marietta Melkonyan mentioned that the organization has about 2,000 employees, and despite the fact that the ethics and compliance division has only two employees, yet it is possible to use the compliance program, follow sectoral policies, and be informed. “This awareness allows our employees to know what to expect from the company and what the company expects from employees,” he said.

The objective of this project is to improve the perception of compliance issue by the Armenian business sector and its practical application, as well as the promotion of public-private partnerships to support anti-corruption reforms.

This material has been prepared in the scope of the “Armenia: Promoting Anti-Corruption Conduct and Reforms” Project implemented by the “Centre for International Private Enterprise”, the “Armenian Lawyers’ Association” NGO, the “Corporate Governance Centre” NGO and the “Yerevan Chamber of Commerce and Industry” with financial support of the National Endowment for Democracy. The project is implemented as a co-financing to the “Commitment to Constructive Dialogue” action implemented with the financial support of the European Union by a Consortium comprising the “Armenian Lawyers’ Association” NGO, the “Armenian Centre for Democratic Education-CIVITAS” NGO, the “International Centre for Human Development” NGO, the “SME Cooperation Association” NGO, the Union of Communities of Armenia, as well as “Agora Central Europe” NGO (Czech Republic). The contents of this material are the sole responsibility of the “Armenian Lawyers’ Association” NGO and can in no way be taken to reflect the views of the National Endowment for Democracy and the European Union.

Alisa Chilingaryan