NACC Notification Imposes Minimum Requirements for "Appropriate Internal Control Measures" in Law
In August 2017, the Office of the National Anti-Corruption Commission (NACC) issued a manual to outline what may be considered as "appropriate internal control measures" for the prevention of acts of bribery within a company (Guidelines).
As noted in our previous newsletter regarding the Guidelines, the internal control measures under the Guidelines comprise eight fundamental elements (refer to link).
The Guidelines themselves did not have the force of law but were merely intended to provide guidance on recommended anti-bribery practices.
However, the NACC has now issued a separate Notification under the Organic Act on Counter Corruption, B.E. 2542 (1999) which specifically requires companies to have appropriate internal control measures for the prevention of acts of bribery which may be undertaken by a company's connected persons for the company's benefit (Notification).
Under the Notification, the company's internal control measures must at least include the eight fundamental elements which were provided under the Guidelines.
Moreover, the Notification makes it clear that the existence of such minimum internal control measures does not guarantee the company's exemption from liability. Consideration must also be given as to how the measures are actually implemented and used by the company.
The issuance of the Notification means that the eight fundamental elements can no longer be considered as merely recommended practices but must now be considered as minimum legal requirements as well.