What’s changing in the world of mandatory corporate compliance?
The EU’s proposed new corporate due diligence and corporate accountability directive will cover companies that sell to the EU, not just those based there. Businesses will be required to identify, address and remedy their impact on human rights and the environment. Crucially, this is likely to go up and down the value chain, which means customers as well as suppliers. Businesses could be sued inside the EU for human rights violations or environmental damage committed by their customers or end-users of their products in third countries.
In light of the Brexit Fair Trade Agreement that passed through parliament on 30 December 2020, HMRC announced that there would be major changes in the UK’s approach to DAC6. HMRC confirmed in its shock New Year’s Eve announcement email that in 2021 the UK government would repeal the legislation implementing DAC6 in the UK and instead implement the OECD’s MDR.
HMRC is currently working on the UK MDR consultation document which will seek views from interested parties on the new rules. While there are no confirmed dates, HMRC hopes to issue the consultation document to the public later in the summer. The expectation is that the consultation will run into the autumn, and the legislation will be finalised in the winter.
VinciWorks’ DAC6 reporting solution accommodates reporting in the UK as well as all EU Member States and will provide a solution for the new UK MDR as soon as it is finalised by HMRC.
In 2017, the UK enacted The Money Laundering, Terrorist Financing and Transfer of Funds Regulations. Over the past few years, there have been a number of changes to these regulations. To help those governed by the Regulations navigate the ever-changing AML landscape, certain bodies have compiled industry-specific guidance. Two of those bodies are the Legal Sector Affinity Group (LSAG) and The Joint Money Laundering Steering Group (JMLSG).
Their guidance was published for the legal and financial sectors respectively. However, the risks faced by an organisation will vary on a case-by-case basis. Accordingly, many of our clients are still unsure as to what constitutes best practice, particularly with regards to carrying out onboarding risk assessments.
During this webinar, our experts explored the latest guidance, why it is necessary and what best practice reporting looks like.
The webinar covered:
What is the LSAG guidance and how does it relate to MLROs?
What is the risk based approach and why is it important as part of CDD?
Understanding how to undertake client due diligence, and when to apply enhanced or simplified due diligence
But European Commission warns adequacy could be revoked ‘immediately’
What is the EU adequacy decision?
The EU adequacy decision is a legal instrument issued by the European Commission that determines whether a non-European Union (EU) country or territory provides an adequate level of data protection to enable the free flow of personal data from the EU member states to that country.When the European Commission issues an adequacy decision, it means that the EU considers the non-EU country’s data protection framework as providing an adequate level of protection for personal data. This enables the transfer of personal data from the EU to that country without the need for additional safeguards or contractual arrangements.
When it comes to making decisions about returning to the office, managers have to tread a fine line. Determining when to return to the office is no simple matter, especially since employers and employees have different opinions on the subject.
Businesses are answering in different ways. Some like the file-hosting service company Dropbox are staying virtual first, pointing to the benefits of nonlinear workdays. But others, like tech giant Facebook and insurance company Aviva, are opting for a “hybrid” model, offering greater flexibility and independence for workers while maintaining certain structures.
To help businesses keep track of updates in UK legislation and policies, VinciWorks regularly publishes a regulatory update. Our regulatory agenda for June covers EU developments, back to the office guidance for managers, ongoing acts of parliament, the latest COVID-19 government guidance and more.
What’s in the regulatory agenda?
What’s new this month?
COVID-19 course development update
EU developments affecting policy and compliance
Recent Acts of Parliament affecting policy and compliance
Vaccines are helping the world get back to normal. But even as the vast majority of people get vaccinated, there will always be a minority who won’t or can’t. Feelings and opinions around vaccines can be emotive, and workplace vaccination policies must toe a complicated line.
There is no legal requirement to be vaccinated, but employers should think carefully before requiring vaccinations at their workplace. Similarly, requiring someone to show proof of vaccination, either to return to the office or visit the premises as a customer could result in possible legal problems. Think carefully about policies and procedures in your workplace before making mandatory requirements.
The COVID-19 pandemic has caused a near-universal sustained stress-inducing experience in the way other plagues haven’t done in centuries. The COVID-19 pandemic is much more comparable to the experience of a world war than a health scare. The pandemic has impacted everyone’s day-to-day lives and will leave long emotional scars even as life returns to something like normal.
Post-traumatic Stress Disorder (PTSD), can result from experiencing a single, significant traumatic event, as well as frequent, sustained exposure to stressful environments. This pandemic has caused us all to experience both.
All Solicitors Regulation Authority (SRA) regulated firms have an obligation to collect, report and publish data about the diversity make-up of their workforce every two years. The next report is due on 2 August 2021. Firms can report their data to the SRA from 5 July.
ESG regulations are likely to go up and down the value chain
Are you ready for the ESG revolution?
Though the thought of undertaking Environmental, Social and Governance (ESG) reporting and becoming compliant might seem overwhelming at first, many companies will find that they are already contributing to many aspects of ESG reporting. Do you train on bribery and tax evasion? If so, that is a key factor in reducing the risk of a governance failure. Maybe your company does diversity audits? Or has a progressive HR policy? If so, you’re already ahead on the social aspect. Does your organization have a recycling policy? Then you’ve already got a head start on the environmental reporting front.
