Protection of the company in the process of criminal proceedings, preparation of the company for searches, training of personnel, protection against unfair competitors
Unfortunately, this phenomenon is very widespread in Ukraine for both foreign and Ukrainian companies. The search is possible even if criminal cases are not brought against the company or its officials.
Enterprises that have criminal proceedings opened or are being investigated are not (in the most part) violators of the law in Ukraine. However, this should be proven in court.
In 7 cases out of 10 the aim of the raid (search) is to remove documents and collect information from the company.
Often foreign enterprises become objects of criminal prosecution and investigations with searches, they are in economic relations with Ukrainian counterparties, in respect of which criminal proceedings have already started.
- During the search, the company, its financial and commercial information, documents, and employees are in the largest risk zone.
- It is better to be ready in advance for the search to protect properly from possible unlawful actions and abuses by law enforcement bodies.
Which companies are in the risk zone:
- Well-known and with a significant share of the market (income).
- That are already in the public environment.
- The companies that won the tender or public tenders for state property objects.
- The companies in respect of which a competitor war is prosecuted or that have a conflict with partners
- That have significant tax charges.
- That have open criminal cases against the company’s managers.
The main business mistakes:
- Absence of a system of risk monitoring and analysis that can be introduced in the company.
- Lack of a comprehensive strategy to protect the company: The existing one may limit, but not fully protect against unlawful actions of state authorities or competitors.
- Absence of special training on handling the investigation (searches, extractions, interrogators, etc.) by the company staff.
- The company’s unreadiness, including personnel and premises, to investigative actions of the investigation (searches, extractions, interrogators, etc.)
- Absence of internal instructions at the enterprise, which regulate procedures of communication of personnel with law enforcement or controlling bodies of the state.
- Absence of individual implemented system of “protection of premises” during investigative actions.
- Lack of awareness of the depth of the problem and understanding of the risks it causes.
- Absence of a system and no complex protection of all levels: both the company and its management.
What losses the company has as a result:
- Blocking of the company’s business activities.
- Possibility to lose part of the market and clients.
- Deletion of original documents.
- Disclosure of bank secrecy.
- Extraction of confidential information.
9.5 negative consequences out of 10 during and after the search are mistakes of the company itself (its management) and unpreparedness for such a procedure as “search” or “raid”.
How to minimize losses and negative consequences
S&P proposes to optimize and protect your business
Audit of counteragents
- We determine the risk of criminal prosecution of your business (in case of cooperation with a certain contractor).
- We anticipate the risk of your company adding taxes and fees (if you work with a certain contractor).
- We provide recommendations on minimization of risks on already existing counterparties and agreements.
Corporate trainings for your staff
- We train personnel on your territory.
- We model and work out various situations possible during searches.
- We provide theoretical knowledge and develop practical skills of behavior during searches for different groups of personnel.
- We work on errors after the search.
We offer comprehensive business protection
- We develop and implement a risk audit system.
- We develop an individual comprehensive strategy for your protection, including limitation and protection against unlawful actions of state bodies or competitors.
- We conduct audit and develop an individual scheme of protection of the premises for investigation actions (searches, extractions, interrogators, etc.)
- We prepare and conduct individual corporate trainings for different categories of personnel for investigative actions.
- We develop internal instructions and regulations that manage the procedures of communication of personnel with law enforcement or supervisory bodies.
- We develop a system-wide comprehensive protection of the company’s management.
Development of an individual system for the protection of your business
- We carry out visits to the office of the enterprise, study the plan of the premises, internal documents, instructions, and rules.
- We conduct surveys of personnel.
- We assess the effectiveness of the existing office protection.
- We develop and implement detailed algorithms for interaction between different groups of personnel and law enforcement bodies.
- We provide vital recommendations: what the company needs to do to form an effective system of interaction with law enforcement bodies
- 90% – Increase in the efficiency of communications in the public field, which is carried out by the company.
- 90% – Decrease of the negative impact on reputation of your business as you enter the public environment.
A detailed action guide for each employee of the company during the search
Each employee gets a clear algorithm of his actions:
- Knows his role in the general strategy of protection and cooperation with law enforcement bodies.
- That is well-balanced and well-understood.
- That prevents spontaneous decisions and allows to act calmly and without panic.
Every search is controlled by the enterprise, not the investigator.
Minimization of all types of losses for the company (financial, reputational, blocking of business activity, loss of market share, loss of clients)
S&P Agency for Business in recent years
- Tax and tax charges to companies for the total amount of $400 million have been reduced
- Returned to the company’s accounts VAT amount of $50 million
- Business is returned it’s illegally blocked VAT to settlement accounts of $370 million
- 25 criminal cases have been closed (due to alleged tax evasion) against the managers of the enterprises for the total amount of $950 million.