Lawyer Monthly Magazine -December 2019 Edition

• The need for companies to award contracts to local suppliers – e.g. based on the remote locations of operations or mandated government requirements. • Contracting with a sole supplier – e.g. due to limited selection of technically skilled providers within a region. • Splitting of orders within the procurement process – e.g. to lower the level of approval required or to avoid tendering for a supplier. You mentioned the increased risk of operating in emerging markets. Why are these markets considered so risky? Emerging markets often have unstable political situations and the lack of infrastructure and controls necessary to combat corruption. There are also challenges associated with implementing effective ABAC policies and procedures across numerous countries which also have distinct cultures and differing access to technology. The inherent bureaucracy in emerging markets also means that there are frequent dealings with government officials (who are often on relatively low salaries) where bribes can be demanded. Finally, third parties are often engaged to manage dealings with foreign markets, and the company will be liable for an associated person’s bribery if it is intended to obtain a business advantage for the company. There are a number of red flags to look out for when dealing with third-party intermediaries such as government links, suspicious circumstances and the provision of misleading information. How can companies operating in the mining industry and high-risk sectors respond to the challenges? Mining companies and those operating in the oil and gas sectors need to address their corruption risks proactively by implementing an effective anti-corruption compliance program. Businesses should be familiar with international laws and accepted standards such as the US Foreign Corrupt Practices Act (FCPA) and UK Bribery Act but should also understand any significant differences in local anti-corruption laws in the jurisdictions where they operate. It would therefore be prudent to engage the services of an expert in the local as well as international legislation in the formation of effective ABAC policies and procedures. LM 78 WWW.LAWYER-MONTHLY.COM | DEC 2019 Expert Insight By Dennis Miralis, Nyman Gibson Miralis Contact Dennis Miralis, Partner Nyman Gibson Miralis Level 9, 299 Elizabeth Street, Sydney NSW 2000, PO BOX 21147, World Square, NSW 2002, DX 11543, SYDNEY DOWNTOWN Tel: +61 2 9264 8884 | Fax: 9264 9797 | Mob: 0414 933 168 | ngm.com.au Dennis Miralis Dennis Miralis is a lead- ing Australian defence lawyer who practices in the following areas of complex domestic and international criminal law; white-collar and corporate crime; bribery and corruption; cyber- crime; money launder- ing; serious fraud; world- wide asset forfeiture; transnational crime; extradition; Interpol Red Notices; anti-terrorism law; national security law and encryption law. He appears in all courts throughout Australia and regularly travels outside of Australia to advise in complex international criminal law matters.