In this context, on December 4, 2024, the Graduate School of Business at Universidad ORT Uruguay a conference that will be pivotal for the future of the business world in the region: “Compliance Perspectives in Latin America.”
This event not only gave attendees insight into the importance of regulatory compliance, but also provided an opportunity to reflect on the vital role that companies play in fostering an ethical and responsible corporate environment.
Compliance: An Essential Discipline
During the event, three experts shared their insights on the growing demands facing Latin American companies in terms of corporate responsibility, sustainability, and ethics: Dr. Martín Bueno —partner at Vargas Abogados—, attorney Yoab Bitran Hasson —director of the Compliance Group at Albagli Zaliasnik—and, as the conference moderator, economist Alejandro Visca —Senior Compliance Advisor at Galileo Financial Technologies in Latin America—.
The objective of the compliance is to prevent a company from committing crimes and facing penalties or situations that could affect its performance or image, or jeopardize its continued existence. In an increasingly globalized and regulated environment, it has become an essential component for organizations around the world.
Compliance is not only a legal requirement but also a key factor in strengthening companies' competitiveness in a globalized economic environment.
This is particularly relevant in Latin America, a region where regulations are constantly evolving and companies must adapt quickly to stay ahead of the curve.
The experts shared their experiences on how international regulations influence local practices and how companies can adapt their strategies to align with global requirements.
Standards established by global regulators emphasize the need for compliance to be accessible to everyone within the organization. This has led to a shift in how internal policies are approached, as they were previously overly complex and legalistic. Today, best practices require that these policies be simpler, clearer, and more understandable.
Beyond theory
Compliance is no longer just a legal matter. Today, it is a cross-functional approach that involves every area of a company, from the legal department to data management, cybersecurity, and corporate ethics.
As the business landscape evolves, so do the risks and opportunities associated with implementing effective compliance programs. Emerging technologies, such as artificial intelligence and data analytics, are reshaping this field in Latin America.
In Anglo-Saxon markets, they’ve already learned about these issues. Compliance is an ally in making better decisions. We’re not there yet. Today, companies that are beginning to set up their first compliance programs are caught in a bind. No one wants this new area to encroach on their territory.
Bitran Hasson, Esq.
The lawyer explained that it is necessary to carve out a space for oneself, and that partnerships are essential to achieving this. “We need to understand that it’s not about taking away roles, but about helping,” he summarized.
He also noted that it is important for companies to devote time to this issue, just as they do to other areas. “Is this area treated with the same level of importance as any other? Did the company scrap an initiative due to compliance issues?” We need to ask ourselves these questions “as a way to improve.” He concluded: “It is an area that is still developing. Often, it’s still in the background; it’s not on the table.”
For his part, Visca said that “the front line of defense (generally, the sales or commercial department) needs to take actions and adopt behaviors that enable the company to manage certain risks and protect itself.”
Visca emphasized that an effectivecompliance department must have a clear purpose. “Regulatory compliance in and of itself can be a major obstacle in many ways,” he cautioned.
It is possible to comply with the rule but not with the intent, which poses a risk. It requires a great deal of fine-tuning, and that requires training.
Alejandro Visca, Esq.
Latin American companies, particularly those operating in sectors such as fintech, face additional challenges in adapting to an increasingly demanding regulatory framework. However, they also have significant opportunities to integrate compliance as a key strategy for their growth and sustainability.
https://www.youtube.com/watch?v=r6EbIhm_cSY