Nardello & Co. Associate Managing Director, Amie Chang, is quoted in this Compliance Week article on China’s newly created National Supervisory Commission (NSC):
The establishment of a powerful new anti-corruption enforcement body in China makes it imperative that foreign multinational companies carefully review existing interactions with public officials in the country and enhance their due diligence and third-party risk management efforts.
On March 20, China’s legislature—the National People’s Congress (NPC)—passed the Supervision Law, granting broad and powerful investigative and enforcement powers to the newly created National Supervisory Commission (NSC), the highest ever anti-corruption agency in China. The NSC is the merging of the Ministry of Supervision under the State Council (China’s Cabinet) and the anti-corruption investigation department of the Supreme People’s Procuratorate (the agency at the national level responsible for both prosecution and investigation in the People’s Republic of China). The new NSC will also carry out the responsibilities of the Communist Party of China’s Central Commission for Discipline Inspection (CCDI).
“The creation of a national supervisory system reflects historic calls to institutionalize the country’s anti-corruption drive,” says Amie Chang, an associate managing director at consulting firm Nardello & Co. based in Hong Kong. “The new setup essentially streamlines a two-track anti-corruption regime into a single-track system and bestows new powers upon the anti-corruption authorities.”
The creation of the NSC signals that political momentum for anti-corruption enforcement in China will not ease. “This is more than just a rebranding of the CCDI,” says Andy Gilholm, principal and director of the analysis practice for Greater China and North Asia at consultancy firm Control Risks. “It’s turning more proactive enforcement into a permanent feature of the environment, rather than a temporary crackdown, and creating a better-resourced and significantly more powerful agency.”
