In September 2024, for a second time in a year and a half, the U.S. Department of Justice (DOJ) updated the Evaluation of Corporate Compliance Programs. More than ever, the DOJ is incentivizing companies to invest in compliance. Our U.S. colleagues recently outlined the updates in this client alert.
The latest requirements present opportunities as well as challenges for companies in Asia. Below are three considerations.
1. Use of artificial intelligence
An array of local artificial intelligence (AI) tools in various languages other than English are available for companies (e.g., Baidu in China, POE in Hong Kong, etc.). Coming on the heels of the pervasive use of personal accounts in the business world in Asia – including WeChat, WhatsApp, and Line – this creates further challenges for appropriate oversight.
This is in addition to the potential use of AI tools to generate falsified information, such as false approvals, manipulated supporting documents, and the list goes on as AI tools become ever more powerful in generating photographs, audios, and videos.
2. Data and resources available to compliance
As companies are expected to compare data that they make available for compliance purposes against data for commercial purposes, they may consider how AI and other emerging technologies can improve and speed up their compliance and monitoring programs. For example, expense audit, identification of red flags, and periodic sample testing of transactions.
3. Whistleblowing and tracking of results
As Asia-based employees become more aware of whistleblowing mechanisms, companies should pay attention to whether complaints and investigations are adequately tracked. Tracking patterns of misconduct or red flags may help companies identify compliance weaknesses unique to, or common across jurisdictions in Asia. Companies that make a targeted investment in compliance resources in this area may speed up detection, reduce losses, and improve remediation outcomes.
About our practice
Ropes & Gray’s anti-corruption & international risk team is a leading global practice with offices in Greater China and across the Asia Pacific. We regularly counsel leading multinational companies on designing global anti-corruption compliance programs and matters on whistleblower allegations, investigations, financial crime, white collar defense, diligence, anti-corruption matters, and compliance counseling in China and Asia/Asia-Pacific.
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