Does Compliance create unnecessary administration costs?
Insufficient Compliance is becoming more and more expensive as the following administrative fine payments, excluding legal fees and processing costs, prove:
- Siemens: approx. 1.200 Mio. €
- MAN: approx. 150 Mio. €
- Daimler: approx. 185 Mio. $
If a company belongs to the same industry or supply industry in such high profile cases, the company’s liquidity can be almost entirely frozen by the prosecutor as soon as any form of suspicion emerges.
Within the same industry sector it is clear that investigative authorities take advantage of their exchanges of experience and even look to initiate further preliminary proceedings through sending out control notices. The tax authorities demand back-payments amounting to millions. German federal states see the skimming of such “excess profits” as a source of income.
Most companies are unprepared or only insufficiently prepared for such an intervention.
Please feel free to read our first hand report from a medium-sized company about their surprise visitor.
We offer security to the Management!
Either you are well prepared, because …
- You have set up procedures, an internal control system as well as an early warning system so that you cannot be accused of default.
- You have implemented a fully functioning Compliance Management System in your corporate culture.
… or your are on the defensive. Then …
- You will come under sustained pressure due to searches and confiscations.
- You will have to hire lawyers, auditors etc. on short notice incurring high costs.
- You will lack the knowledge basis for a swift solution.
We know the success factors for both scenarios!
