CRIMEPREVENTIONMANUALAntofagasta PLCAnti-Corruption Legislation(Law 20.393 & UK Bribery Act)
November 2014
Aguas Antofagasta
Antofagasta Minerals
Antofagasta PLC
Energía Andina
Ferrocarril de Antofagasta
Minera Antucoya
Minera Centinela
Minera Los Pelambres
Minera Michilla
CRIMEPREVENTIONMANUALAntofagasta PLCAnti-Corruption Legislation(Chile Law 20.393 / UK Bribery Act)
November 2014
Table of ContentsI. INTRODUCTION 04
II. PURPOSE 05
III. SCOPE 06
IV. OVERALL DEFINITIONS 06
V. CRIME PREVENTION MODEL (CPM) 07
A. Crime Prevention Officer (CPO) 09
−FunctionofCrimePreventionOfficer 10
−MeansandPowersoftheCPO 10
−ResponsibilitiesoftheCPO 11
B.ComponentsoftheCrimePreventionModel 13
1.PoliciesandProcedures 13
2.CodeofEthics 13
3.Anti-corruptionRegulations 13
4.WhistleblowingchannelsandcomplaintInvestigation 14
5.DueDiligence 15
6.ContractClauses 16
7.InternalRegulationsonOrder,HygieneandSafety 16
8.ConflictofInterestDeclaration 16
9.GiftsandHospitality 17
C.RiskManagement 17
D.CommunicationandTraining 20
E.MonitoringandReviewingtheCPM 21
VI.HIGHRISKBUSINESSACTIVITIES 22
Donations 22
Sponsorship 23
FundstobeRendered,ReimbursementofExpensesand
CreditCardUse 23
TravelbyEmployeesandThirdParties 23
MergersorAcquisitions 24
Permitting 24
RetainingofServicesandProcurementofGoods 25
SurplusMaterialsforSale 25
VII.NON-COMPLIANCEREPORTINGPROCEDURE 26
VIII. ADMINISTRATIVE SANCTIONS 29
ANNEXES 32
.4
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
I. Introduction
Law20.3931,whichcameintoforceinChiletowardstheendof2009,stipulatesthecriminalliabilityoflegalentitiesfortheoffensesofbrib-ingapublicofficial,financingterrorismandassetlaundering.Similarly,theUKBriberyAct2,whichcameintoforceinJuly,2010,stipulatesthecriminalliabilityforactsofbriberyofpublicofficialsandbriberyintheprivateandpublicsectors,aswellasalsothefailureofcompaniestopreventthem.OthercountriesinwhichAntofagastaplcoperatesalsohaveanti-corruptionlawsinplace.3
Anti-corruption lawsareapplied internationally,sotheactionsofanyemployee, or third party involved in the business of Antofagasta plc,mayhaveanimpactonourorganizationiftheyfailtocomplywiththeseregulations. The above does not preclude the individual liabilities forcommittinganyoftheaboveoffenses.
AspartofourcompliancewiththeAnti-CorruptionLaws(UKBriberyAct,Law20.393andothers)and itsduty to supervise and direct, theBoardofDirectorsofAntofagastaplcapprovedthe implementationoftheCrime Prevention Model(hereinaftertheCPM)inAntofagastaplc.
1SeetheprovisionsofChileanAnti-CorruptionLegislation(Law20.393)inExhibiti.2SeetheprovisionsoftheUKBriberyActinExhibitii.3Someanti-corruptionlawsincountrieswhereAntofagastaplcoperates:USForeignCo-rruptPracticesAct(FCPA),AustraliaBriberyofForeignPublicOfficials,CanadaCorrup-tionofForeignPublicOfficialsAct(CFPOA)andtheForeignTradeLawofthePeople’sRepublicofChina.Seeexhibitsiithroughviformoredetails.
.5
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
ThisCrimePreventionManual(hereinaftertheManual)stipulatestheoperationofthevariousactivitiestopreventandmitigatethepotentialrisks of offenses being committed, which Antofagasta plc, has beenidentified as being exposed to andwhich have been included in theCPM.
TheCPMcomprisesthefollowinginternalelements:
1. CodeofEthics.2. Channelforcomplaints.3. InternalRegulationsonOrder,HygieneandSafety.4. ThePolicies, Instructions,Policies,Proceduresorotherregula-tions specifically defined to support the anti-corruption initiativesimplementedtomitigatetherisksofoffensesidentified.5. The Risk and Compliance Area’s training and communicationsplanthatstipulatesthevariousinstancesandwaysofdeliveringin-formation and trainingemployeeswith regard to theoffenses re-ferredtohereinandtoexecutingtheCPM.
II. Purpose
ThepurposesofthisManualareto:
•Stipulatetheactivitiesandproceduresneededtoeffectivelyimple-mentandoperatetheCPM.•StipulateamechanismforpreventingandmitigatingtherisksofoffensestowhichAntofagastaplcisexposed.•StipulatetheactivitiesoftheCPMforwhichtheCrimePreventionOfficer is responsible in performinghis or her supervision of themodel.•ComplyfullywiththerequirementsstipulatedunderAnti-Corrup-tionLaws.
.6
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
III. Scope
TheManualandCPMapplytoallwhoworkorprovideservicesinorforAntofagastaplcor itsaffiliates.4Thescope includesshareholders,directors, topmanagement,managers, executive officers, employees,temporarystaff,contractorsandadvisorsoftheCompany.
TheCompanyexpectsupright,strictanddiligentbehaviorfromallthepersons identifiedabove incomplyingwiththeanti-corruptionrelatedregulations,specificallymoneylaundering,fundingterrorism,briberyofpublicofficialsandbribery,togetherwiththeirrespectivemeasuresofpreventionandmitigationasstipulatedbytheCompany.
IV. Overall Definitions
Management of a Legal Entity:AccordingtoArticle4ofLaw20.393,theManagementoftheLegalEntityisthetopadministrativeauthority,withthis,inthecaseofAntofagastaplc,beingitsBoardofDirectors.
Bribery of public officials:This isunderstoodtobeofferingorcon-sentingtoprovideanybenefit,whethereconomicorofanyotherkind,toapublicofficial,whethernationalorforeign,sothatheorshedoes,orstopsdoing,something,withinthesphereofhisorherposition,compe-tenceandresponsibilities,intheinterestsofthelegalentity(company).
Bribery:Offeringorconsentingtograntanybenefit,economicoroth-erwise,toanyperson,irrespectiveiftheyareprivateorpublicofficials,nationalorforeign,forsaidofficialstodoorrefrainfromdoinganything,withinthescopeoftheirposition,competenceandresponsibilities, intheinterestofthecompany.
4Law20.393stipulatesandregulatesthecriminalliabilityofthelegalentity.Hence,theagreement to implement the Crime PreventionModel and all arrangements stemmingfromthisagreementmustbeadoptedandbeapplicabledirectlybyeachofthelegalenti-ties(companiesmakinguptheAntofagastaplcGroup.
.7
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Asset Laundering:Anyactintendingtohideorconcealtheillicitoriginofgivengoods,ortoacquire,own,haveorusethegoods,knowingthattheystemfromthecommitmentofanillicitactinvolvingdrugtraffick-ing,terrorism,armstrafficking,promotingchildprostitution,kidnapping,bribery,securitiesmarket,bankfinancingandothers,withtheintenttoprofitfrom,sell,contributethemtoacompany,oranyotherpurpose,knowingtheirillicitorillegaloriginatthetimeofreceivingthegood.
Funding terrorism:Thisisunderstoodtobeanyindividualorlegalenti-tythat,byanymeans,whetherdirectorindirect,requests,collectsand/orprovidesanykindofcontributionforthepurposeofitbeingusedtoexpediteanyactofterrorism,whethersuchisacontributionofspecies,moneyorsomeotherkindofcollaborationwithactivitiesthatqualifyasterroristones.
Associated persons:Thisreferstoanyperson,whetheranindividualor a legal entity,withwhich theCompanyhas currently, or is in theprocessofnegotiatingpotentially in the future, abusinessorservicerelationship. This includes the Contractors, Subcontractors, Advisors,Agentsoranythirdparty,whosebehaviororconduct,becauseoftheirbusinessfunctionand/orrelationshipwithAntofagastaplc,maypossiblyconstitutetheoffensesreferredtoinAnti-CorruptionLaws.
V. Crime Prevention Model
TheCrimePreventionManualofAntofagastaplcconsistsofaseriesofmeasuresofpreventionofthecrimesofasset laundering, fundingterrorism,briberyofpublicofficialsandbribery,whichoperatethroughthevariousactivitiesoftheCPMandarecontained inthisdocument.Thepurposeoftheseactivitiesistomeettherequirementsofa“Crime prevention system”,andtheimplementationofthe“Policies and proce-dures”undertheAnti-CorruptionLaws.Thismanualalsostipulatestherisk identificationactivities, riskcontrols, andsuitablemonitoringandreportabilitymechanisms for preventing, detecting andmitigating therisksassociatedwiththeaboveoffenses.
.8
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Alltheexecutiveofficers,employeesandoutsidestaffofAntofagastaplcarecommittedtocomplyingwiththelawsandregulationsinforceinthecountrieswhere itoperates.Therefore,theCompanywillnottolerateanykindofcorruption,andthecommitmentofanyillicitact,suchasas-setlaundering,fundingterrorism,briberyofpublicofficialsandbribery,isexpresslyforbidden.Consequently,Antofagastaplc:
1. Shall oversee performance of its duty to direct and supervisethroughtheadequateoperationoftheCPM.2.ShallappointaCrimePreventionOfficer.Thisindividualwillholdthepositionforthreeyearsandmaybere-electedforequalperiodswhileholdinghisorhercurrentposition.
TheapplicationandfulfilmentoftheactivitiesstipulatedinthisCPMistheresponsibilityofeachCompanyoftheAntofagastaplcGroup,andtheireffectivenesswillbereportedtoeachoftheirBoardsofDirectorsbytheIndividualInChargeofCrimePrevention.
TheCPMofAntofagastaplciscarriedoutviaaseriesofactivitiesrep-resentedinthegraphicmodelbesides:
.9
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
A. Crime Prevention Officer
Law20.393requirestheappointmentofaCrime Prevention Officer (hereinafterCPO).TheBoardofDirectorshasfullauthoritytoappointtheCPOfora3-yearterm,andmustrecorditsdecisionsinthisregardintherespectiveminutesoftheBoardofDirectors.
TheCPO5 isresponsible forsettingupacrime prevention system,bymeansofanCPM,togetherwiththeCompany’stopmanagement,i.e.,itsBoardofDirectors.
Risk Prevention Model
Crime Prevention Officer
Crime Prevention Manual
Certification of the Model
Output
Risk Matrix
Identification of risk of crime
-Definition of
controls-
Evaluation of compliance with
controls-
Response activity
Support Areas
Legal-
Management-
Risk Management-
Internal Audit-
Ethics Committee
Control Environment
Code of Ethics-
Channel for Complaints-
Internal Regulations-
Policies / Procedures-
Crime Prevention Manual
-Complaint
Management Manual
Labor Laws
Contract appendices > Employees> Contractors
-Clause attached to the Internal Regulations
Six-monthly Report to Board of Directors
Informational report to other areas / companies
Updating and Monitoring the CPM
5Law20.393,article4(3).
.10
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
> Function of the Crime Prevention Officer:
Byhisactions,theCPOrepresentsthecompany’svalues.Heorshealsohasfullandcompleteknowledgeofthefollowing:•Thefunctionsandresponsibilitiesofeachareaofthecompany.•Thelegislationandregulationsissuingfromthelegitimate,compe-tentregulatoryauthorities.•TheCodeofEthics,ProceduresManuals,RegulationsandotherinternalinstructionsofAntofagastaplc.
> Means and Powers of the CPO:
1.InperforminghisorherfunctionsasCPO,theCPOactsautono-mouslyinrelationtotheManagementofAntofagastaplc,itsshare-holdersandcontrollers,withdirectaccesstotheBoardofDirectorsofAntofagastaPlc.2.Heorshehasavailableanannualbudget(meansprovidedbytheExecutiveChairmanorGeneralManagerandapprovedbytheBoardofDirectors)andstaffunderhisorherchargetoimplement,operateandreviewtheCPMincompliancewiththeLaw.6
3.Heorshehasthebasic,necessarytoolstoproperlyperformhisorherroleandresponsibilitiesastheCrimePreventionOfficer.4.TheCPOhasdirect,unrestrictedaccesstothevariousareasoftheorganization,inordertobeabletocarryoutthefollowingactivities:
i)Carryoutspecificinvestigations.ii)Expeditemonitoringofthecrimepreventionsystem.iii)Requestandreviewtheinformationforcarryingoutitsfunc-tions.
6Law20.393,Art4,2):ManagementoftheLegalEntityshallprovidethe individual inchargeofpreventionwithsufficientmeansandpowerstobeabletoperformhisorherfunctions,whichmustconsideratleastthefollowing:a)thenecessarymaterialresourcesandmeanstoadequatelyperformhisorhertasks,consideringthesizeandeconomiccapacity of the legal entity; b) direct access to theManagement of the LegalEntity toinformitingoodtimeandbysuitablemeansofthemeasuresandplansimplementedincompliancewithhisorhermissionandtorenderaccountofhisorhermanagementandreportatleastonasix-monthlybasis.
.11
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
> Responsibilities of the CPO:
1.Overseeproperdevelopment, implementationandoperationoftheCPMintheCompany,togetherwiththeBoardofDirectorsofAntofa-gastaplc.2.CoordinatecompliancebythevariousareasandmanagementsofAntofagastaplcwith lawsandregulationstoprevent thecrimesre-ferredtointhisManual.3.Ensure thateverybody involvedwithAntofagastaplc receives theCodeofEthicsandensuretheycomplywithittopreventanyimproperconduct inthedailyactionsoftheemployeesandserviceproviders.Thismaybecheckedbyreviewingthetrainingonthesemattersthatthecompanymustprovideregularlyforitsemployees,andthroughthereportsofirregularitiesorbreachesoftheCodeofEthics.4.Reportonasix-monthlybasistotheBoardofDirectorsofAntofa-gastaplconthestatusoftheCPMandmattersforwhichheorsheisresponsibleandwhatheorshehasdoneasCPO.AlsoreportinduetimetotheBoardofDirectorsonanysituationthathascometohisorherattentionandwhichcouldbeconsideredanoffense,sothatthelat-tercanadoptwhatevermeasuresmightapply.5.TogetherwiththeBoardofDirectors,promotethedesignandneces-saryupdatestothepolicies,procedures, instructionsandguidelines,includingthisManual,sothattheCPMcanbeoperatedeffectivelyand/orwheneversuchmaybenecessary in lightof anychanges to thecountry’slawsandregulations.6.Overseeknowledgeofandcompliancewiththeprotocols,policies,procedures,instructionsandguidelinesstipulatedaselementsofcrimepreventioninthedailyactionsofthemembersoftheorganizationandtheircollaborators.7.Headupinvestigationswhenthereisavalidcomplaint,orasuspi-cioussituationthatwarrantsone,gatheringanyevidencethatmaybenecessary.8.DefinespecificreviewstocheckcompliancewiththeactivitiesoftheCPM.Alsodeterminetheirscopeandextent.TheresultsofcompletedreviewsmustbereportedtotheBoardofDirectorsortotheapplicableBoardCommittee.
.12
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
9.CheckthedesignandimplementtheCPMtrainingprogramsdesignedforthemembersoftheorganization.10.TogetherwiththeBoardofDirectors,assumeresponsibilityfortheprocessofidentifyingandassessingtherisksofoffensesinvolvingtheimplementation of the control activities for preventing andmitigatingsuchrisksandtheadequateoperationoftheCPM.11.Keepanupdatedlistofanyactivitiesthat,becauseofhowtheyarecarriedoutortheirtypicalfeatures,mayrepresentariskofMoneyLaun-dering,Fundingterrorism,BriberyofpublicofficialsandBribery.Thislistidentifyingsuchactivitiesiscontainedinthe“RiskMatrix”,whichisanintegralpartoftheModel.12. Encourage the fact that the internal processes and controls ofAntofagasta plc should have effective crime risk prevention controlsandmaintainsuitablerecordsofevidenceofcompliancewithandim-plementationofthesecontrols.13.Documentandsafeguardevidenceabouttheircrimepreventionac-tivities.14.Receiveanycomplaintsubmittedduetonon-complianceoftheCPMorthecommissionofanyillicitact,assubmittedbyanyoftheowners,individualsresponsible,directors,topmanagement,executiveofficers,employees, dependents, contractors and third parties related to thebusiness.15.BeastandingmemberoftheEthicsCommitteeofAntofagastaplcandhaveaccesstoallreportsreceivedinrelationtoAnti-CorruptionLaws.
Withoutdetrimenttotheabove,theCPOmayactdirectly,orthroughthestaffunderhisorherchargeorthroughanyassignedperson,todelegatepartofhisorheractivities.
B. Components of the Crime Prevention Model
TheCPMofAntofagastaplchasthefollowingcomponents,whichareofessentialimportancetotheeffectiveoperationandfunctioningoftheModel:
.13
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
1. Policies and ProceduresAllofthepoliciesandproceduresstipulatingdefinitions,regulationsandcontrolsforthecompany’sactivitiesmustbedulydocumented,dissemi-natedandaccessibletoallstaffinvolvedinthem.
2. Code of EthicsTheCodeofEthicsstipulatesaframeworkofbehaviorforthebusiness’dailychallengesbasedontransparency,integrity,compliancewiththeapplicablelawsandmakinggoodbusinessdecisions.Inthisregard,itstipulatesacontrolenvironmentfortheactivitiesthatmightexposetheCompanytolegaland/orcriminalliabilities.
Antofagastaplcdemandsanupright,strictanddiligentbehaviorfromallofitsexecutiveofficers,supervisors,employeesandcollaboratorsincomplyingwiththePreventionModel,withallofthemhavingtocommittothestrictestpossibleobservanceoftheModel.
3. Anti-corruption RegulationsAnybodyactingonbehalfofAntofagastaplcshallnotoffer,promiseorconsenttogiveanypublicofficialorprivateofficer,whetherChileanorforeign,anyeconomicbenefitunderanypretextorcircumstancesandusinganymeans.Similarly,employeesshallalwaystakecaretoensurethattheCompany’smoneyorassets,orthesigningofagreementsorcontracts,areneverusedunderanycircumstancesforillegalendsand/orendsthatcouldconstituteoffenses,suchasthefundingterrorism,moneylaundering,briberyofpublicofficialsandbribery.7
Employeesmustalwaysbealerttoanysituationthatmightseemsuspi-ciousandmightexpeditethecommittingofanyoftheoffensesreferredtoabove,andtheyshallreportthemimmediatelyusingthechannelforcomplaintssetupbyAntofagastaplc.
7Law20.393,CriminalLiabilityofLegalEntities,forbidstheoffensesofbriberyofapublicofficial(nationalorforeign),moneylaunderingandfundingterrorism.TheUKBriberyActforbidsbribery inthepublicorprivatesector,aswellasalsothecompanies’failuretopreventbribery.
.14
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
4. Whistle blowing channels and complaint InvestigationThecomplaintschannel isasystem implementedattheorganization,available through the intranet, internet, email and telephone (toll freenumber), intended to be used as amechanism to submit any com-plaintrelatedtoirregularitiesorviolationsofinternalpolicies,irregularconduct, Ethics Code violations, CPM breaches or potential commis-sionofanyoffenseindicatedintheAnti-CorruptionLaws(Law20.393,UKBriberyAc, etc.). TheCPOshall analyze the complaints receivedthroughthevariouschannelssetinplacebytheorganization,toidentifythosethatcouldhaveCPM implicationsorotherwiseassociatedwithanycriminaloffensesundertheAnti-CorruptionLaws(Law20.393,UKBriberyAct,etc.).
TheCPOmustseetothepropercoordinationofinvestigationslaunchedonthebasisofcomplaintshavingCPMimplicationsorotherwiseasso-ciatedwithanycriminaloffensesundertheAnti-CorruptionLaws(Law20.393,UKBriberyAct,etc.).
Handlingofcomplaintsandcoordinationofcomplaintinvestigationsareconductedasprovidedinthe“ComplaintReviewandReportingMeth-odology.”
Response activitiesTheobjectiveisto launchtheinvestigation,establishresolutions,cor-rectiveaction,disciplinaryactionand/orsanctionsforCPMoffendersorupondetectionofanyredflagsunderAnti-CorruptionLaws.Aspartoftheresponse,thereviewofbreachedcontrolactivitiesmustbecontem-platedinordertoreinforceorreplacethemwithnewcontrolactivities:
CPMresponseactivitiesincaseofanyviolationofAnti-CorruptionLawsareasfollows:
•Reportsanctionsandcontrolenhancements.•Coordinatedisciplinarysanctions.•Registerandfollowuponcasesandsanctions.•Fileareportwiththelawenforcementagencies,ifapplicable.
.15
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
5. Due DiligenceRelationship with third partiesDue diligence audits on prospective business partners Antofagastaplc,whethertocreateastrategicalliance,jointventureorcobranding,notonlycovercommercialandfinancialaspects,buttheyalsoanalyzealltheinformationneededtodetectpotentialtiesbetweentheoutsidecompanyandanyoftheoffensesindicatedinLaw20.393andtheUKBriberyAct.8
Relationship with Contractors and Vendors/AssociatesInductionofAntofagastaplc contractors/vendors (“Associates”)mustinclude a due diligence process contemplating the followingmatters,wheneverapplicable:backgroundchecksonthepartnersorownersofthecompany,investigationofsuspicioussituationsinvolvingtheAssoci-ate, suchasproductorservicepricessignificantlybelowthemarketprice,obtainingcorruptionriskinformationontheAssociate’scountryoforigin,ifaforeigner,inclusionofduediligenceformsaspartofthepaperworknecessaryforthetender,andmaintainingadatabasewiththeAssociatesdeemedineligible.
6. Contract clausesIn compliance with Anti-Corruption Laws, all employment contractswith in-house staff and Associatesmust include clauses, obligationsandnegativecovenantsrelatedtotheselaws.
CompliancewiththisrequirementisundertheresponsibilityofHumanresourcesandContracts,asapplicable,tobereviewedbytheEDPfromtime to time.
Exceptionally, modifications may be introduced into the clauses provided they are approved by Corporate Risk and Compliance.
8TheRiskandComplianceAreaoftheVPFand/orCompanyComplianceOfficer is inchargeofleadingtheduediligenceprocessinordertoassesstheriskofoffensesposedbyanewbusinessrelationshipandsubsequentreportingrequirementsandpreventionassurances.
.16
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
7. Internal Regulations on Order, Hygiene and SafetyIncompliancewithAnti-CorruptionLaws,the InternalRegulationsonOrder,HygieneandSafetyofAntofagastaplcmustincludetheinternalobligations,prohibitionsandsanctionsrelatedtostatedoffenses.Theseproceduresmustberegulated in lightoftheregulations involvingthefundamentalrightsoftheemployees.
8. Conflict of Interest DeclarationUponbeingemployedbytheCompany,newhiresmustsignaconflictofinterestdeclarationanddeclareiftheyhaveaConflictofInterestasdeterminedinTitleIIoftheEthicsCodeofAntofagastaplc.ItmustbereviewedandupdatedifaconflictisidentifiedsubsequenttotheConflictofInterestDeclarationsignedatthetimeofemployment.Thisstatementmustbeprovidedand,afterbeingsigned,deliveredtoHumanResourc-esatAntofagastaplc,withacopytoRiskandCompliance.
Moreover,everyexecutiveofficer,supervisor,employeeandcollabora-torofAntofagastaplc,who,inhisorherrelationshipwithpublicoffi-cials,hasorbelievesthatheorshehasaconflictofinterests,isboundtoreportconflictof interestsituationsthroughtheConflictof InterestDeclaration,availablewithHumanResourcesatAntofagastaplc.Inad-dition,thesamecommunicationmaybedeliveredtoRiskandCompli-anceandintheIntranet.
Inthecaseofassociates,wheneveracontractisrenewedortendered,anyContractororSuppliermustsigntheConflictofInterestDeclarationasindicatedintheRiskManual.
9. Gifts and Hospitality GuidelinesAntofagastaplcemployeesmaynotoffer,giveorreceivegiftsorhos-pitalitywhen:
•ThevalueexceedsUSD100.•Whendoneonaregularorperiodicbasiswiththesamepersonorinstitution.
.17
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
•WhenAntofagastaplcisinanegotiation/tenderprocess,securingapermitorauthorizationforkeyrights.•Itisstrictlyforbiddentooffer,giveorreceivemoney.
For more information, see the Gifts and Hospitality Guidelines.
C. Risk Management9
Togetherwith theBoardofDirectors, theCPO is responsible for theprocessofidentifyingandassessingthepotentialrisksofcommitmentofanoffensetowhichAntofagastaplcisexposed.Asaresultofthisprocess,aCrimeRiskandControlsProfilemustbedrawnup,and itmustbereviewedeveryyearorwhentherearesignificantchangestotheconditionsofthebusiness.
Thefollowingmustbedonetocarryoutthisactivity,inaccordancewiththeRiskManagementManualineffectattheCompany:
•Identifyandassessrisks.•Assessandquantifyrisks.•Identifycontrols.•Assesscontrols.•Monitorandfollowup.
Theprocessmustbedocumented in theRiskSystemestablishedbytheCompany.
1. Identifying RisksRisksmust be identified using a “top down” approach throughworkmeetingsinwhichallkeypeopleparticipate.Alistofthemainrisksce-narios is drawn up involving commitment of the offenseswithin thescopeoftheLawthatmaybecommitted inthedirectand immediate
9Anti-corruptionLegislationRequirements,especiallyarticle4(3)(a)ofLaw20.393andPrinciple3oftheUKBriberyAct.
.18
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
interestorforthebenefitofthecompanyandthatmaybecommittedbytheowners,directors,responsibleindividuals,mainexecutiveofficersorthosewhoperformmanagementandsupervisoryactivities,aswellasbytheemployeesunderthedirectionorsupervisionofanyoftheabove.Therisksareassessedtoestablishtheirvalidityandquantifythem.ThisinformationmustbeincorporatedintotheRiskMatrix.
2. Assessing RisksTherisksidentifiedmustbeassessedtoplacetheminorderofpriority,withaviewtodeterminingtheoperatingareasorprocesseswiththemostexposure.ThisenablestheCPOtofocushisorherresourcesandefforts.
TheImpactandProbabilityparametersareusedtoassesstherisksasindicatedintheRiskManagementManual.
Keypersons,whoareawareorinvolvedintheriskstobediscussedandwhohavetheauthoritytomakedecisionsaboutthecontrolstrategiesandothermethodsofriskmanagement,mustparticipateintheassess-mentoftherisksidentified.
3. Identifying ControlsFor any risks detected, controlsmust be identified for their effectivemitigation.ThesecontrolsareincorporatedandmonitoredbyRiskandCompliancetoassesstheeffectiveoperationoftheCPM.
Foreachcontrol,onemustidentify:
•Descriptionofcontrolactivity.•Frequency.•Identificationofthepersoninchargeofexecutingcontrols.•Evidenceofsupport,amongotheraspects.
.19
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
4. Assessing ControlsThe design and effectiveness of the controls identified in point 3willbeevaluatedwithregardtotheirmitigationoftheriskofanoffensetowhichtheywillbeapplied.
Basedontheevaluationperformed,onemustconcludethatthecontrol:
•Reasonablymitigatestheriskoftheoffense.•Doesnotreasonablymitigatetheriskoftheoffense.
5. Monitoring and Follow UpThepurposeistotakeactionstodetectanynon-compliancewiththeCPMandpossibleexposurestotheoffensesspecifiedunderAnti-Cor-ruptionLegislation(Law20.393,UKBriberyActand/orothers).
TheCPMdetectionactivitiesareasfollows:
•ReviewofcompliancewiththeCPMcontrols.•Reviewoflitigation.•Reviewofcomplaintsandinvestigationscarriedout.
D. Communication and Training
Antofagastaplc isrequiredtoadviseall itsemployeesandassociatesontheexistenceandcontentsofthemodelandthescopeoftheAnti-CorruptionLegislation(Law20.393,UKBriberyActandothers).
Furthermore,forthispolicytobeintegratedintothedailytasksofeachmemberofAntofagastaplc,regulartrainingwillbegiventothemem-bersofAntofagastaplc inorder to transmit theminimumknowledgerequiredofthematterandhowtoapplyitsprocedures.
.20
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Trainingshallconsideratleastthefollowingcontents:
•Definitionoftheoffensesofbribery,briberyofpublicofficials,assetlaunderingandfundingterrorismandlegislationonthesematters.•TheCompany’sPolicieswithregardtothePreventionModel.•BriefexpositiononthecontentsofthePreventionManual.•ToolsandmechanismsusedforimplementingtheModelandtheCodeofEthics.•Examplesofsituationsofriskoftheseoffensesbeingcommitted.•Establishedreportingchannels•Internalregulationsandstandards.•Obligationtoreport.•Disciplinaryconsequences,aswellaslegal(civil,criminal,admin-istrative),ofnon-compliancewiththeinternalandexternalregula-tionsinmattersofassetlaundering,fundingterrorismandbribery.•Responsibilityofeachemployeewithregardtothismatter.
EveryrelevantemployeeofAntofagastaplcshallparticipateinthetrain-inginstancesarrangedbytheCompanyforthesepurposes.
E. Monitoring and Reviewing the CPM
Bymonitoring,theCPO,orwhoeverheorsheappoints,shallregularlycheckthattheCPMworksasitwasdesignedtodo.
In order to carry out themonitoring activities, the CPOmay requestsupport from other areas of the organization, such as Internal Audit(oroutsourcethisactivity),Accounting,amongothers,alwaysprovidedsuchareasarenotinvolvedintheactivitytobereviewed.
TheCPOmayperformthefollowingmonitoringactivities:
•Reviewthesupportingdocumentationofthetestsperformedbythesupportareas.•Checkthecontrolactivities(bymeansofsampling).
.21
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
•Analyzethereasonablenessofthetransactions.• Check compliancewith the restrictions stipulated in the proce-dures.•Others.
Inthosemonitoringactivitieswhereasampleneedstobedetermined,theCPOmustdetermineanddocumentthecriteriontobeused.
Review PlanTheCPOmuststipulateaReviewPlan,whichmustconsiderchecksontheoperatingeffectivenessofthecontrolsimplemented,themitiga-tionoftheriskofcommittingtheoffensesstipulatedandtheoperatingeffectivenessof theCPMas stipulated inAnti-CorruptionLegislation.ThisPlanmustdefinethenumberofreviewsneeded,thematterstobechecked,thefrequencyandtheircontrols,etc.
All operationsgiving rise to an investigationdue to thepossible per-petrationofanyoftheoffensesparticularized inthisManualmustberecorded.Thisrecordmustbekeptforatleastfive(5)years.
Accordingtoarticle4(b)ofLaw20.393,AntofagastaplcmaycertifytheCrimePreventionModelaspertherequirementssetout inthesamestatuteandinrelationtothesituation,size,businessline,levelofrev-enuesandcomplexityofthecompany.
VI. High risk business activities
Donations
ThefollowingobligationsareanintegralpartoftheprocedureregulatingdonationsatAntofagastaplc:10
•Stipulatethechainofauthorizationsformakingdonations.
10ReviewCommunityInvestmentsGuideline,whichdefinesandspecifiesallmattersre-latingtoCompanydonations
.22
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
•Ensurethattheentityreceivingthedonationhastheproperac-creditation(legalvalidity,incorporation,legalrepresentatives,etc.).•Checkthe institution in theRECORDOFDONATION-RECEIVINGINSTITUTIONS–LAW19.885.•Identifytheworkdonebytheinstitutionreceivingthecompany’sdonation.•StipulatethepurposeanduseoftheresourcesdonatedbyAntofa-gastaplc.
Sponsorship
Arecordmustbekeptwiththephysicalevidenceofthecontributionsmadetosponsorevents.Thisrecordmust includeanidentificationoftherecipientorbeneficiaryofthesponsorshipandthepurposeofthebenefit.Theprocessofauthorizationappliedbythecompanytothepro-visionofthesponsorshipmustalsoberecorded,includingdetailedin-formationabouttherequestforsponsorship(ifany).
Funds to be Rendered, reimbursement of expenses and credit card use
Inordertofacilitateperformanceofdutiesonthepartofexecutivesandsomeemployees,theCompanyadvancesfunds,reimbursesexpensesalreadyincurredandprovidescreditcards.
Theprocedurerequiresfillingoutrenderingforms,indicatingexpensedetails,withtherespectivevouchers.Theformsshallbearthesignatureoftheapplicantandapprovalofhisorherdirectsuperior.TheymustfinallybesenttoAccounting.
Thesefundsarenottobeusedtoentertainpublicofficials,norforen-tertainmentexpenses,norforanyotherpurposethanthosespecifiedintheparagraphabove.MoredetailsarefoundintheFundRendering,ReimbursementofExpensesandCreditCardUseprocedure.
.23
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Travel by Employees and Third Parties
Travelexpenseswillonlybereimbursedwhenrelatedto:transporta-tion,accommodations, food,commuting,useofdrycleaningservicesuseoftelephones,carrentalexpenses,entertainmentexpenses,actu-allydisbursed,andsubmittingtherelevantsupportingdocumentationororiginalinvoices.
Inveryexceptionalcases,andincompanieswithcash-onlyeconomies,wherenodocumentssupportingthetransactionareavailable,thetrans-actionmustbedescribedindetailanddiscussedwiththeVP,AreaMan-agerorGeneralManagerinquestion,whoshallevaluateapproval.
TheCompanyshallnotassumeresponsibilityfordisbursementsnotdi-rectlyrelatedtothepurposeoftheworktrip,whichshallbebornebytheemployee.
TheGroupshallnotreimburseexpensesthatgoagainstitsvalues.
Likewise,itisforbiddentoaccepttripspaidbycustomers,suppliersorcontractors,currentorprospective,ofAntofagastaplc.
For more information, please review the Expenses and Travel Guidelines and the Gifts and Hospitality Guideline.
Mergers or Acquisitions
AMergerorAcquisitionprocessshallnecessarilyconsideraDueDili-gencewith an analysis of all of the information that can possibly becompiledontheparticipationof thecompanytobeacquired,orwithwhichamergerisbeingsought,intheoffensesspecifiedinAnti-Cor-ruptionLegislation.
.24
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Permitting
As part of its ordinary course of business,Antofagasta plc needs toobtainseveralsector-specificorotherpermitsrequiredbythebusiness.Communicationsbye-mailwithpublicofficialsshallbeconductedusingtheinstitutionale-mailaddressesofAntofagastaplcandtheinstitutiontowhichtheofficialbelongs. Incaseofanyanomalydetected inthisprocess,thePreventionOfficermustbecontacted.
Retaining of Services and Procurement of Goods
Antofagasta plc is a company governed by the highest ethical stan-dardsand,therefore,itexpectsitsprovidersofgoodsand/orservicestostrictlyadheretoallthelawsandregulationsthatapplytoitsbusinessprocesses.Tothisend,ithasincluded,aspartofitsanalysis,aback-groundcheckonparticipants,theuseoftheduediligencequestionnaireandprovidingparticipantswith theConflictof InterestForm (internalandexternal).
Surplus Materials for Sale
Thesaleofsurplusmaterialsisrelatedtoequipment,tools,materials,suppliesandother itemsdeclarednon-essentialbyacompany,eitherbecausetheyarenolongernecessaryorarenolongerusefulforthemainbusinessactivity.Thesesurplusesareclassifiedas:decommis-sionedfixedassets,obsoletestocks;projectsurplusesandothersur-pluses(scrapmetal,materialindisusefromproductionprocesses).
Generally,thesesurplusesarevaluedasanobsolescenceprovisionorwrite-down,tobereversedatthetimeofsale.
Tosellsurpluses,Antofagastaplcmustconductthefollowingactivities:declarationofnon-essentialassetsbytherelevantbusinessarea;salesprocess;andaccountingoftheactivityinaccordancewiththeAccount-ingPoliciesoftheGroup.
.25
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
(*) This list is not all-inclusive, and it does not cover all business activities presenting higher risk.
VII. Non-Compliance Reporting Procedure
1. General Framework
Antofagastaplcexpectsthat,intheperformanceoftheirtasks,itsem-ployeesandcollaboratorswillactatalltimessubjecttotheprincipleofgoodfaith,whichrequires,amongotheraspects,constantlymaintaininganattitudeofcollaborationwiththeorganization.TheseareconsistentwiththeprinciplesofbehaviorandvaluesstipulatedinourCodeofEth-ics.Aspartofatoolforcomplyingwiththeabove,Antofagastaplchasdesignedandimplementedachannelofcommunications,sothatmem-bersoftheorganizationanditscollaboratorsmayexpress,communi-cateorreportanyirregularitiestheymaydetectintheperformanceoftheirjobs.
Similarly, theorganizationexpects itsemployeesandcollaboratorstoadopt responsiblemeasures to prevent any non-compliancewith theCrimePreventionmodel,soasto lookforguidanceandreportsitua-tions intimetobeabletopreventthemfrombecomingproblems.Tothatend,onemustconsiderthat,asageneralprinciple,ifanyemployeeorcollaboratorofAntofagastaplchasanydoubtsorsuspicionaboutapossibleinfringementofthelaws,ofthispolicyoranyothersofthecompany’spolicies,suchemployeeorcollaboratormayreportthissitu-ationusingitsformalchannelforreceivingthesekindsofreports,viatheIntranetortheInternet.
2. Whistle blowing channels
ThechannelsprovidedbyAntofagastaplcforreportinganyirregulari-tiesareasfollows:
.26
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
•IntranetAddress: http://sistemas.aminerals.cl/sri
•InternetAddress: https://sistemas.aminerals.cl/SRIProduccion/frmNuevoReporte.asp
•Telephone: 800–835–132 (Chile) 1–800–089–969 (Australia) 1–866–488–7958 (Canada) 1–866–835–6085 (UnitedStates) 0808–101–7308 (UnitedKingdom)
•E-mailaddress: [email protected]
3. Reporting
Withoutdetrimenttothe factthattheemployeesandcollaboratorsofAntofagastaplcmayreportthosesituationsthatmight–dependingonthecircumstances–signifyapossibleviolationofthelaws,thispolicyoranyothersofthecompany’spolicies,inapreventivemannerandusingthechannelsdescribedabove,theyshallnecessarilyreportanysuspi-cionsofanyviolationofthe local lawsorthoseofthecountrywherethe company operates, or of theCompany’s policies, regulations andprocedures,whenanyofthefollowingmattersareinvolved:
•Anallegedactofbriberyofpublicofficialsorbriberyofapublicofficial,whethernationalorforeign,oranallegedlinkofAntofagastaplctoanactofbriberyofpublicofficialsorbribery.•KnowledgeorsuspicionofalinkbetweenanemployeeofAntofa-gastaplc,whichinvolvesterroristactsorfundingterrorism,orassetlaundering.•KnowledgeorsuspicionofasupplierorproviderofservicestoAntofagastaplc,whichinvolvesbribery,assetlaunderingorfundingterrorism.
.27
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
AnyreportsinvolvingtheoffensesstipulatedinLaw20.393andtheUKBriberyActwillbereferredtotheCrimePreventionOfficer.
4. Handling Complaints or Reports
TheCPOisresponsibleforadequate,timelyhandlingofcomplaintsandreports receivedthathavetodowiththeoffensesstipulated inAnti-corruptionLegislation(Law20.393,UKBriberyAct,etc.)andheorshewill ensure that the necessarymeasures are adoptedwith regard tosuchcomplaintsorreports.
Reportsofnon-complianceoftheCPMmustconsiderthefollowingas-pects:
•Theindividualmakingthereportorcomplaintmustdescribeinasmuchdetailaspossiblethesituationinwhichheorshewasmadeawareofthetransactionoroperationthatcausedthereport.Heorshemust includethe foundationsonwhichthe indicationsof thispossibleunusualorsuspiciousoperationorsituationarebased.• Ifthere isabeneficiaryofthetransactions,specifythepersonaldataofthisbeneficiary.•Thereportmustcontainasmuchinformationaspossibleabouttheindividualundersuspicionorthoseinvolved.•TheCPOwillkeepaconfidentialfilewithalloftheinformationre-ceivedandwhichmayonlybeaccessedbythepeoplewho,becauseoftheirposition,mustbeinvolvedinsomewayintheinvestigationofthereportandonlywithregardtotheessential informationforthatinvestigation.
5. Confidentiality of the report
Allreportswillbekeptstrictlyconfidentialand,hence,theywillonlybeknowntotherecipientofthereportandtheIndividualinChargeofPre-ventionand/orthepeoplewhoneedtobeinvolvedintheinvestigation.
.28
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
6. Reporting to law enforcement agencies
Iffactsareuncoveredthathavethecharacteristicsofacrime,theCPOshallevaluate,togetherwiththeLegalCounselandBoardofDirectorsoftheCompany,whethertomaketherespectiveaccusationstotheCourtsofLaw,thePublicProsecutororthePolice.ThisactionisspecifiedasanattenuatingcircumstanceforthecriminalliabilityofthelegalentityinArt.6ofLaw20.393,whichstates.
“The legal entity will be understood especially to collaborate substantially when, at any stage of the investigation or legal proceedings, its legal representatives have informed the authorities of the punishable event, or contributed information to establish the events investigated, before knowing that it was the subject of legal proceedings”.
VIII. Administrative Sanctions
EveryemployeeofAntofagastaplcmustknowthecontentsoftheModelandshallbegovernedbyitsguidelinesatalltimes.TheCPOcontrolscompliancewiththisModelandputsintopracticetheverificationpro-grams.
Non-compliancewith the termsandconditionsof thisManual by theemployees is grounds for sanctions,whichmay range fromaverbaladmonitiontodismissal,dependingontheseriousnessoftheviolation,notwithstandinganyotheractionsdeemedapplicabledependingonthecase.
Foradvisors,contractorsorsuppliers,non-compliancewiththetermsandconditionsofthisManualisdeemedagrossbreachofcontractandisgroundsforimmediateterminationofthecontractinforce.
TheemployeesmustreportanyinfringementsnotedofthePreventionModeltotheirsupervisorsortheCPO,orthroughthereportingmecha-nisms.
.29
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
TheemployeesofAntofagastaplcshallbeawarethattheymaybethesubjectofinternalinvestigations,ifthereisanyindicationoranyreporthasbeen received involvingnon-compliancewithsome lawor inter-nalregulationofthecompanywithinAnti-corruptionLegislation(Law20.393,UKBriberyAct,etc.).Employeesshallcollaboratefullywiththeinternal investigationprocedurescarriedoutwithinthe frameworkoftheCPM.CompliancewiththepoliciesandproceduresspecifiedinthisManual, intheCodeofEthicsand intheotherdocumentssupportingtheModelismandatoryandtheyareincorporatedintothefunctionsandresponsibilitiesassignedtoeachemployee.
Theadvisors,contractorsandsuppliersofAntofagastaplcaresubjecttothesameobligationtocollaborate,whichisplacedonrecordintherespectivecontractsoragreementssigned.
.30
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
.31
CRIM
E PR
EVEN
TIO
N M
AN
UA
LAnnexesTheseannexesarereferredtotheprovisionsoftheAnti-CorruptionRe-gulationsin:Chile,UnitedKingdom,UnitedStates,Australia,CanadaandthePublicRepublicofChina.
Ontheunderstandingthattheanti-corruptionlegislationsareappliedin-ternationally,thefactthattheUKBriberyActhasbeendescribedasthefar-reachinginscopeandthetoughestlegislation,andwiththeintentiontoprotectthecompanyanditsemployees,forallpurposesAntofagastaplcwilldevelopitscrimepreventionmodel,guidelinesandproceduresinaccordancewiththeUKBriberyAct.
.32
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Anexo i
Chile Law 20.393RequireshavinginplaceaCrimePreventionModelinordertopreventthecommissionofcriminalacts:moneylaundering,fundingterrorismandbriberyofpublicofficials.
InitsArticle3,theLaw20.393setsoutthe‘Attributionofcriminalres-ponsibility’.LegalpersonsshallbeliablefortheoffenseslistedinArticle1thatwerecommitteddirectlyandimmediatelyintheirinterestorfortheirbenefit,bytheirowners,drivers,managers,seniorexecutives,re-presentativesorthoseengagedinadministrationorsupervisionifthecommissionoftheoffenseisaconsequenceofbreach,bythelatter,ofthedutiesofmanagementandsupervision.
Underthesameassumptionsoftheprecedingparagraph,legalpersonsshallbe liableforcrimescommittedby individualswhoareunderthedirectionordirectsupervisionofanyofthepersonsmentionedintheprecedingparagraph.
Supervisorydutiesarefulfilledwhen,priortothecrime,thelegalper-sonhasadoptedandimplementedmodelsoforganization,managementandsupervisiontopreventcrimes.
Legalpersonsshallnotbeliableincasesofnaturalpersonsmentionedintheprecedingparagraphs,havecommittedtheoffensesolelytotheiradvantageorforathirdparty.”
Anexo ii
UK Bribery Act 2010TheUKBriberyAct(hereinafter“Act”)isalawenactedbytheUnitedKingdomParliamentthatseekstostrengthentheanti-briberylegislation.Indeed,ithasbeendescribedasthehardest,globally,oflawscomparedinthistopicestablishesprisonsentencesof10years.
.33
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Section12oftheActprovidesthatthecourtswillhavejurisdictionoverthesections1,2or6offencescommittedintheUK,buttheywillalsohave jurisdiction over offences committed outside the UKwhere thepersoncommittingthemhasacloseconnectionwiththeUKbyvirtueofbeingaBritishnationalorordinarilyresidentintheUK,abodyincorpo-ratedintheUKoraScottishpartnership.
TheActcreatesanewoffenceundersection7whichcanbecommittedbycommercialorganisationswhichfailtopreventpersonsassociatedwiththemfromcommittingbriberyontheirbehalf. It isafulldefencefor an organisation to prove that despite a particular case of briberyitneverthelesshadadequateprocedures inplace topreventpersonsassociatedwithitfrombribing.
Astheprinciplesmakeclearcommercialorganisationsshouldadoptarisk-basedapproachtomanagingbriberyrisks.Proceduresshouldbeproportionatetotherisksfacedbyanorganisation.Nopoliciesorpro-ceduresarecapableofdetectingandpreventingallbribery.
Arisk-basedapproachwill,however,servetofocustheeffortwhereitisneededandwillhavemostimpact.Arisk-basedapproachrecognisesthatthebriberythreattoorganisationsvariesacrossjurisdictions,busi-nesssectors,businesspartnersandtransactions.
Theseprinciplesarenotprescriptive.Theyare intendedtobeflexibleandoutcomefocussed,allowingforthehugevarietyofcircumstancesthatcommercialorganisationsfindthemselvesin.Smallorganisationswill,forexample,facedifferentchallengestothosefacedbylargemulti-nationalenterprises.Accordingly,thedetailofhoworganisationsmightapply these principles, taken as a whole, will vary, but the outcomeshouldalwaysberobustandeffectiveanti-briberyprocedures.
Proceduresputinplacebycommercialorganisationswishingtopreventbriberybeingcommittedontheirbehalfshouldbeinspiredbysixprin-ciples:1)Proportionateprocedures:Acommercialorganisation’sproce-durestopreventbriberybypersonsassociatedwithitareproportionate
.34
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
tothebriberyrisksitfacesandtothenature,scaleandcomplexityofthecommercialorganisation’sactivities;2)Top-levelcommitment:Thetop-levelmanagementofacommercialorganisation (be itaboardofdirectors,theownersoranyotherequivalentbodyorperson)arecom-mittedtopreventingbriberybypersonsassociatedwithit;3)RiskAs-sessment:Thecommercialorganisationassessesthenatureandextentofitsexposuretopotentialexternalandinternalrisksofbriberyonitsbehalfbypersonsassociatedwithit;4)DueDiligence:Thecommercialorganisation applies due diligence procedures, taking a proportionateandriskbasedapproach,inrespectofpersonswhoperformorwillper-formservicesfororonbehalfoftheorganisation,inordertomitigateidentifiedbriberyrisks;5)Communication:Thecommercialorganisationseekstoensurethatitsbriberypreventionpoliciesandproceduresareembeddedandunderstoodthroughouttheorganisationthroughinternalandexternalcommunication,includingtraining,thatisproportionatetotherisksitfaces;6)MonitoringandReview:Thecommercialorganisa-tionmonitorsandreviewsproceduresdesignedtopreventbriberybypersonsassociatedwithitandmakesimprovementswherenecessary.
Anexo iii
US Foreign Corrupt Practices Act (FCPA)TheFCPAregulationsprohibitofferingtopay,promisetopay,pay,orauthorizepaymentofmoneyoranythingofvaluetoaforeignofficialforthepurposeofinfluencinganyactordecisionoftheforeignofficialinhisofficialcapacityortosecureanadvantageinappropriatetoobtainorretainbusiness.
The FCPA potentially applies to any individual, firm, officer, director,employeeoragentofafirmandanystockholderactingonbehalfofacompany.Individualsandfirmsmayalsobepenalizediftheyorder,au-thorizeorassistanyotherpersontoviolatetheanti-briberyorconspiretoviolatethoseprovisions.
.35
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Under theFCPA,UnitedStates jurisdictionovercorruptpayments toforeignofficialsdependsiftheviolatorisan“issuer”(“issuer”),a“do-mesticcompany”(“domesticknow”),oranationalorforeigncompany.
Anexo iv
Australia Bribery of Foreign Public OfficialsAustraliaratifiedtheOECDConventiononCombatingBriberyofForeignPublicOfficialsinInternationalBusinessTransactions(theConvention)on18October1998.Australia’s implementing legislation(theCriminalCodeAmendment(BriberyofForeignPublicOfficials)Act1999(Cth)),entered into force on 17 December 1999, wich inserted Division 70intotheCriminalcode.TheConventionrequirescountriesto legislateagainstthegivingorofferingofabribetoaforeignpublicofficialtogainorretainabussinessadvantage.
Asnotedabove,AustraliaimplementinglegislationfortheConventiniscontainedinDivision70oftheCriminalcode.ThelawappliestoconductoccurringinAustraliaorinaforeigncountrybyanAustralianresidentorcitizen,oracorporationincorporatedinAustralia.
Section7.02oftheCriminalCodecreatestheoffenceorbribingafo-reignpublicoficial.Theoffenceiscommittedifaperson:(a) p r o v i -desabenefittoanotherperson;or(b)causesabenefittobeprovidedtoanotherperson;or(c)offerstoprovide,orpromisestoprovideabenefittoanotherperson;or(d)causesanofferoftheprovisionofthebenefit,orapromiseofprovisionofabenefit,tobemadetoanotherperson;and(e)thebenefit isnot legitimatelyduetotheotherperson;and(f)thefirstmentionedpersondoessowiththeintentionof influencingaforeignpublicoficial in theexerciseof theofficial’sdutyasa foreignpublicoficial inorderto:(i)obtainorretainbusiness;or(ii)obtainorretainabusinessadvantagethatisnotlegitimatelyduetotherecipient,orintendedrecipient,ofthebusinessadvantage.
.36
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
Anexo v
Canada Corruption of Foreign Public Officials Act (CFPOA)Canada’s foreigncorruptionavoidance legislation is theCorruptionofForeignPublicOfficialsAct(CFPOA).TheCFPOAwasenactedin1999,moretantwodecadesaftertheUSForeignCorruptPracticesActandover a decade before theUK brought into forcé th Bribery Act. TheCFPOAwasenactedinresponsetotheOECD’santi-briberyconvention,wichCanadasignedinlate1997andratifiedinlate1998.TheCFPOAisdeliberatelysimilarinmanywaystotheUSFCPAandinarobustregimewichnecessitatescarefulcomplianceactivitybyCanadiancompaniesandindividualscarryingonbusinessabroad.
ConsistentwiththeOCDEConvention,theCFPOAseekstocurtailco-rruptpracticesbyCanadiansandCanadianbusinessesoperatingabroad.Morespecifically,itfocusesonactsofbriberyoffenceintheCFPOAisprescribedinsection3(wichisverysimilartoboththeFCPAandtheOECDConvention):
(1)Everypersoncommitsanoffencewho,inordertoobtainorretainanadvantageinthecourseofbusiness,directlygives,offersoragreestogiveorofferaloan,reward,advantageorbenefitofanykindtoaforeignpublicoficialortoanypersonforthebenefitofaforeignpublicofficial(a)asconsiderationforanactoromissionbytheofficialinconnectionwiththeperformanceoftheofficial’sdutiesorfunctions;or(b)toinducetheofficialtousehisorherpositiontoninfluenceanyactsordecisionsoftheforeignstateorpublicinternationalorganizationforwichtheoffi-cialperformsdutiesorfunctions.
(2)Everypersonwhocontravenessubsection(1)isguiltyofanindic-tableoffenceandliabletoimprisonmentforatermnotexceedingfiveyears.
TheCFPOAalso prohibits the laundering of property or procedes ofanypropertyobtainedorderivedfrombriberyofaforeignpublicoficial,inCanadaoroffshore.PossessioninCanadaofpropertyorprocedes,
.37
CRIM
E PR
EVEN
TIO
N M
AN
UA
L
wheatherfrombriberyorlaunderingisanoffence.Furtheritprohibitsaconspiracyoranattempt,aidingorabetting,anintentionincommon,orcounselingotherstocommitbriberyofaforeignpublicoficial,launde-ringpropertyandprocedes,orpossessionofpropertyandproceeds.
Anexo vi
Provisions under Public Republic of China Anti-unfair Competition LawThePRCAnti-UnfairCompetitionLaw(the“AUC”)providesthatbusi-nessoperatorsmaynotsellorpurchaseproductsorservicesthroughbribing the opposite parties with properties or with other means. Aparty’sactofpayingrebatetotheoppositepartyoffbalancesheetandinsecretshallbedeemedaspayingbribe;theoppositeparty’sactoftakingrebateoffbalancesheetandinsecretshallbedeemedasaccep-tingbribe(Article8).
TheAUCfurtherprovidesthat:wheretheactsofbusinessoperatorswhosellorpurchaseproductsorservicesthroughbribingwithproper-tiesorwithothermeansconstituteacrime,thesebusinessoperatorsshall assume criminal liabilities in accordancewith the criminal laws(pleasereferto“PRCCriminalLaw”onthenextpagehereoffordetails);ifsuchactsdonotconstituteacrime,thein-chargeauthoritymayfinethemintherangeofRMB10,000toRMB200,000inaccordancewiththe seriousness of each specific case and shall confiscate all illegalincomes(ifany)derivedtherefrom(Article22).
Interim Provisions on Banning Commercial BribeTheInterimProvisionsoftheStateAdministrationofIndustryandCom-merceonBanningCommercialBribery (“BCB”)providesthatentitiesandindividualsshallnotacceptorseekbribewhensellingorpurcha-singcommoditiesorserviceswithintheterritoryofPRC(Article4).ApartywhichviolatestheBCBtosellorpurchasecommoditiesorser-vicesbypayingbribeshallbeimposedafineintherangeofRMB10,000toRMB200,000pursuanttoArticle4oftheAUCinaccordancewith
thecircumstancesofeachspecificcase,andall illegal incomes(ifany)derivedtherefromshallbeconfiscatedbyAdministrationof IndustryandCommerce.Apartywhichsellsorpurchasescommoditiesorservicesbyreceivingbribeshallbesanctionedassamewayastheaforesaid;ifsuchparty’sbehaviorsconstituteacriminaloffence,suchpartyshallbeinvestigatedandprosecutedbythejusticeauthorities(Article9).
Provisions under Public Republic of China Foreign Trade LawPRCForeignTradeLaw(“FT”)appliestoforeigntradeandrelatedintellectualpro-pertyprotection.Foreigntradethereinreferstoimportandexportofcommodities,technologiesandinternationaltradeofservices(Article2).
Article33ofFTprovidesthatunfaircompetitionbehaviorsareforbiddeninforeigntradebusiness,includingsalesatunfairlylowprices,collaboratingbids,advertisingdishonestly,bribingandsoon.
Article33oftheFTgoesontoprovidethat:apartywhoconductedunfaircompe-titionbehaviorsinforeigntradebusinessshallbesanctionedinaccordancewiththe anti-unfair competition lawsand regulations; if suchbehaviorsdamage theorderofforeigntrade,theauthorityinchargeoftheforeigntrademayeliminatethedamagebymeasuresof,forexample,banningthepartyfromimportandexportoftherelatedcommoditiesandtechnologies.
Public Republic of China Criminal LawThePRCCriminalLaw(“CL”)providesthatemployeesofcompanies,enterprisesorotherentitieswhomakeuseoftheirworkingconveniencestoseekpropertiesor unlawfully accept properties fromother people, andmake benefits for suchpeople,shall,incasesinvolving“relativelylargeamounts”,bepunishedwithim-prisonmentorcriminaldetentionforlessthan5years;incasesinvolvinga“largeamount”,withimprisonmentofover5years,andmaybesubjecttoforfeitureofproperty(Article163).
TheaforesaidArticle163alsoprovidesthatemployeesofcompanies,enterprisesorotherentities,whointhecourseofeconomiccontacts,receivepersonalkick-backsandcommissionsinvariousformsinviolationofrulesofthestate,shallbepunishedaccordingtoprovisionsundertheprecedingparagraph.
Article 164of theCLprovidesthatofferingproperty tocompany,enterpriseorotherentities’employeesforimproperbenefitsshall,incasesinvolving“relativelylargeamounts”,bepunishedwithimprisonmentorcriminaldetentionforlessthan3years;forcasesinvolvinga“largeamount”,withimprisonmentofover3yearsbutlessthan10years,andwithfine.
Visu
al C
once
ptio
n/ R
acic
Gru
po D
iseñ
o
Risk Prevention Model
Crime Prevention Officer
Crime Prevention Manual
Certification of the Model
Output
Risk Matrix
Identification of risk of crime
-Definition of
controls-
Evaluation of compliance with
controls-
Response activity
Support Areas
Legal-
Management-
Risk Management-
Internal Audit-
Ethics Committee
Control Environment
Code of Ethics-
Channel for Complaints-
Internal Regulations-
Policies / Procedures-
Crime Prevention Manual
-Complaint
Management Manual
Labor Laws
Contract appendices > Employees> Contractors
-Clause attached to the Internal Regulations
Six-monthly Report to Board of Directors
Informational report to other areas / companies
Updating and Monitoring the CPM