Corporate Compliance
- Credits: 4
- Ending: Examination
- Range: 2C
- Semester: summer
- Year: 2
- Faculty of Commerce
Teachers
Included in study programs
Teaching results
Students will possess following abilities:
- Students will become familiar with corporate compliance (together with risk management) as part of corporate governance.
- The issue of corporate compliance will be presented in the context of a new institutional economic theory and, above all, in the context of transaction costs theory (the requirement to be in line with the legal and ethical environment of companies under this theoretical framework is based on an economic reality in which we can encounter imperfect information, opportunism, and specific assets).
- Students will understand the need to implement corporate compliance in international trade and business, which can be called again under a new institutional economic theory terminology such as governance structures or tools to secure specific transactions (as well as corporate governance and risk management).
Students will obtain following skills:
- Awareness of the existence and need for mitigating operational risk, arising primarily from a compromised reputation and from impending sanctions in the event of a breach of the organization’s legislation.
- Orientation in relevant legislation, in the requirements of the Slovak Act on Protection against Legalization of Proceeds of Crime and Protection against Terrorist Financing and the Slovak Act on the Implementation of International Sanctions.
- Adopting the basic legislative as well as ethical requirement of corporate compliance, namely the knowledge of your business partner, including the practical implementation of this requirement by obtaining information from relevant sources and databases.
Students will gain following competences:
- In accordance with the graduate profile, readiness to be responsible for their activities and decisions, considering their social consequences.
- Prudence in business, including adequate transparency towards the external environment.
- Ability to analyze and select a trading partner in international trade.
- Ability to use information databases on natural and legal persons.
- Competence in reducing operational risk arising from legislative and ethical requirements.
Indicative content
Theoretical starting points applied to corporate compliance issues. Protection against the legalization of proceeds of crime anti-money laundering (AML) as part of corporate compliance and at a higher level of corporate governance. Management liability and failures under the influence of the financial and economic crisis. Implementation of international standards in the form of Slovak Act No. 297/2008 Z. z. as amended by Slovak Act No. 52/2018 Z. z. The principle of knowing a business partner in practice. Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation).
Support literature
1. ALBUQUERQUE, Fábio a Paula Gomes DOS SANTOS, eds. Accounting and Financial Reporting Challenges for Government, Non-Profits, and the Private Sector [online]. IGI Global, s. 24-57. Advances in Finance, Accounting, and Economics. DOI: 10.4018/978-1-6684-7293-4.ch002. ISBN 9781668472934. Dostupné na internete: https://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/978-1-6684-7293-4.ch002
2. MANACORDA, Stefano a Francesco CENTONZE, eds. (2022). Corporate Compliance on a Global Scale [online]. Cham: Springer International Publishing.
3. MORAVEC, Tomáš a Lucie ANDREISOVÁ. (2021). Obchodní společnosti pohledem Corporate Governance. Praha: Grada Publishing, Právo pro praxi.
4. STEINHAUSER, Dušan a Ľuboš PAVELKA. (2021). Riadenie rizík v medzinárodnom obchode. Bratislava: Vydavateľstvo EKONÓM.
Syllabus
1. Introduction, course requirement, theoretical starting points. 2. A new institutional economic theory and transaction cost theory in the application to corporate compliance issues. 3. Corporate compliance (CC) as part of corporate governance (CG). 4. The 2008 financial economic crisis and its link to corporate governance failure. 5. Slovak corporate governance codex (comparison of the 2008 and 2016 versions). 6. Legislative requirements for the implementation of corporate governance (pursuant to Paragraph 20 of Slovak Act No 431/2002 on Accounting). 7. Shadow banking and the 2012 EU Shadow Banking Green Paper and the CG 2016 Compliance Statement. 8. Demonstration of the annual reports of obliged entities. 9. 40 recommendations of the Financial Action Task Force (FATF) and the Annual Reports of 2017 and 2016 of the Financial Police Intelligence Unit of the Slovak Republic. 10. Managerial liability and criminal liability of legal entities. 11. Protection of personal data (pursuant to Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of individuals with a view to the processing of personal data and on the free movement of such data). 12. Examples of CG failure in practice and examples of CC failure in practice. 13. Practical exercise of verifying a business partner using publicly available sources and sanctions lists. International sanctions (pursuant to Slovak Act 289/2016 on the Implementation of International Sanctions).
Requirements to complete the course
40% semester work, presentation and discussion
60 % written exam
Student workload
Total: study load 4 credits x 26 h = 104 hours
Separate study load for individual educational activities:
Attendance at seminars: 26 hours
Preparation for seminars: 17 hours
Processing of semestral project: 13 hours
Preparation for the final exam: 48 hours
Language whose command is required to complete the course
Slovak, English
Date of approval: 09.02.2023
Date of the latest change: 25.10.2023