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LANZBC Newsletter February 2017
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EDITORIAL
This month the LANZBC hits the road with the Mexican Embassy and ProMexico, as proud supporters of 'Doing Business in Mexico' breakfast seminars in Christchurch, Wellington and Hamilton on 21-23 March. Further details are below for each of the events - registrations are required by 17 March so make sure you do so to secure your place.

Members are advised that the LANZBC Board Nomination period for the next Council Board of Directors opens in March. If you'd like to contribute to the success of the Council and have a couple of hours a week you could dedicate to helping us make this organisation bigger and better, then please read the details below.


Thank you to all those LANZBC members who have paid their membership - your prompt payment means the Board can continue to plan an events calendar which fulfils our commitment to you of providing a variety of informative and entertaining networking events. We appreciate all of our members' continued support in 2017 and look forward to seeing you all at our regional events.

Enjoy the read and keep sending us your suggestions for how we can make this an even more informative newsletter.
COUNCIL NEWS
LANZBC welcomes new member
Please welcome Active Adventures as a new member of the LANZBC. We are delighted to have Active Adventures join us and look forward to extending the Council's connections and networking opportunities to them, to help them grow their business.
Active Adventures offer multi-day, fully guided adventure tours. Getting you into the most beautiful locations on Earth, under your own steam, is what Active Adventures are all about and at the heart of everything they do. Based in New Zealand, they're Kiwi owned and operated, and have been hand-crafting trips of a lifetime for over 20 years.
LANZBC Board nomination period opening soon
The Board would like to advise members that the Board Nomination Period, in which nominations can be made for our next Board, will open in late March and run until early April.
Applicants must be paying members of the LANZBC, and should have broad business skills, sound business experience in/with Latin America, and the desire and time to promote the LANZBC and encourage trade between New Zealand and Latin America. Further information on the LANZBC Board, skills and competencies sought from directors and expected time commitments can be found here.

Nominees will need to complete a Board Nomination Form (complete with signatures of a proposer and seconder, both of whom must be financial members of the Council or associated with an organisation that is) and submit a biography of no more than 200 words with an accompanying photograph, and return it to LANZBC Secretary Heather Kawan at heather.kawan@lanzbc.co.nz. Members will be notified of the opening of the Board Nomination Period by direct email.

For more information, please contact Heather Kawan on 0226 308 533 or by email.
Doing Business in Mexico seminars: 21-23 March
The Embassy of Mexico in New Zealand and the Mexican Trade and Investment Promotion Agency (ProMexico) invite LANZBC members and friends to a series of breakfast seminars on Doing Business in Mexico. Featuring presentations by the Trade Commissioner of Mexico for Australia and New Zealand, and representatives from Fisher & Paykel Healthcare, these events are essential for anyone looking to enter into or expand their business in Mexico as our two countries enter the Trump era and seek ways to collaborate more closely.
Christchurch:
Date: Tuesday 21 March 2017, 8.15 - 11am
Venue: CECC, 57 Kilmore Street, Christchurch
Wellington:
Date: Wednesday 22 March 2017, 8.15 - 11am
Venue: The Embassy of Mexico, AMP Chambers, Level 2, 187 Featherston Street, Wellington
Hamilton:
Date: Thursday 23 March 2017, 8.15 - 11am
Venue: Mystery Creek Events Centre, 125 Mystery Creek Road, Hamilton
Click here for programme details for each of the seminars. All events are free to attend but registration is essential. To register, please email eventosnze@sre.gob.mx by 17 March 2017.
Above: A fantastic turnout at the Doing Business in Mexico seminar held in Auckland in October 2016.
Spotlight on South America: NZTE South America Beachhead Advisor Jorge Forteza - POSTPONED
The LANZBC regrets to inform members and friends that due a family health issue, Jorge Forteza, NZTE's South America Beachhead Advisor, has had to postpone his visit to New Zealand. NZTE are looking to reschedule as soon as possible, and Export New Zealand will confirm with registered attendees once dates have been finalised.
Event report: Rodrigo Arellano roundtable 
On Thursday 16 February, around 20 Wellington-based LANZBC members turned out for a networking function to kick off the 2017 calendar of activities.  The event, arranged in association with Education New Zealand, coincided with a (personal) visit to New Zealand by Rodrigo Arellano, an adviser in the Executive Office of the President of Chile. 

The Ambassadors of Mexico and Cuba and the Charge d’affaires from Chile were in attendance.  Several new faces and potential LANZBC members, including from Palmerston North, joined with the stalwarts of the business community to share their anecdotes on doing business with Latin America.  It was great to share a toast with LANZBC Vice-President Leandro Cavalcanti, back for a short time from his home base in Brazil. Saude!
Above left: Mexican Ambassador Jose Traslosheros joins the round-table discussion. Above right: (L to R) Cuban Ambassador Mario Alzugaray, LANZBC Vice-President Leandro Cavalcanti with former LANZBC Vice-President Tom Manning (photo credit:Thomas Manning from Transpacific Business Digest)
If you are a member running an event that relates to business between New Zealand and Latin America, please be sure to email us at info@lanzbc.co.nz - we can promote your event using our social media outlets, as well as this newsletter.
MEMBER HIGHLIGHTS
Sharing our members' stories and success
Vista Group focuses on Brazil in 2017

Vista Group, which makes 95 percent of its revenue offshore, says it will make a play into new markets in Brazil, France and Italy this year.

Chief executive Murray Holdaway says the three countries are big cinema markets that Vista hasn’t yet penetrated as part of its global expansion.

Vista Group identified Brazil as a growth market during the period of the company’s Initial Public Offering in August 2014, and in October 2016 Vista Entertainment Solutions Limited (VES) gained regulatory approvals (homologation) for the licensing of its world leading Vista Cinema software for the majority of states in Brazil.
 
Customers using Vista Cinema in other territories, that also own and operate cinemas in Brazil, are able to deploy Vista Cinema to their Brazilian cinema sites should they wish to do so. Vista’s reseller in the territory can also commence marketing Vista Cinema to new customers in Brazil.

Hurrell Global Risk: creating a compliant environment for your organisation
In this article, Paul Hurrell, Managing Director of Hurrell Global Risk, reports on the findings of the 2016 Corruption Perception Index and how LANZBC members can identify and mitigate their organisation's risks when trading with foreign markets.

“Bribery = The offering, promising, giving, accepting or soliciting of an advantage as an inducement for an action which is illegal, unethical or a breach of trust. Inducements can take the form of gifts, loans, fees, rewards or other advantages (taxes, services, donations, favours etc.)”

The Transparency International (TI) 2016 Corruption Perception Index was released in January 2017, elevating New Zealand back to 1st equal with Denmark, with a corruption score of 90 out of 100.

The average global score for all 178 countries was only 43/100 where TI states that a score below 50 indicates real issues with corruption within the Police, Judiciary and the subsequent flow down effect to other public and private organisations. New Zealand (90/100) and Australia (79/100) are in fact surrounded on all sides by countries that score well below 50/100. The CPI is not a single source study but is compiled by review of around twenty separate reports and surveys conducted globally.

While some countries, such as Uruguay and Chile score well, others in the Latin Americas have not scored so well, such as Colombia, Argentina, Peru, El Salvador etc. The average score for the Americas, buoyed by Canada, is 44/100.

The 2016 EY Global Fraud Survey revealed that 90% of Brazilian respondents believed that corruption is widespread throughout the country.

Organisations operating within these environments, especially those small to medium businesses, which do not have the benefit of in-house compliance teams that larger corporations enjoy, need be mindful of not only the impacts to their own business but also fresh regulations being instituted in each member country as they move to improve their standing and reduce bribery and corruption at home.

The US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act (UKBA) are both far-reaching pieces of legislation, the later impacting British citizens doing business anywhere in the world.

Regulators are not only expecting compliance, they are now seeking evidence that some type of ‘risk assessment’ and ‘at risk person training’ was in place, and unfortunately, simply a company policy saying “we won’t do this” and “won’t allow that” is no longer sufficient to meet the expectations of regulators.

Many New Zealand and Australian companies trade east and west so they also need to be aware of the impacts that Asia Pacific countries can pose for them in this area.

In October 2016, the first international risk management standard on Bribery and Corruption Management systems, ISO 37001, was introduced.  This document brings together the requirements under the FCPA, the UKBA, New Zealand Secret Commissions Act and Australian Criminal Code, as well as a whole range of legislation from Latin America; additionally, it sets out in detail minimum expectations and methodology of proper responses by organisations bribery and corruption allegations or risk thereof.

Organisations’  conducting business in Latin America historically may recognise the risks; however, there is a requirement for all organisations, and particularly new players within the region, to be: (i) aware and compliant; (ii) demonstrate how they considered and recognised risks; and (iii) methodology used to deal with those risks. 

Creating a compliant environment depends on good data and information on your organisation's risks by knowing:

  • Board and leadership obligations – as well as the company and personal impacts for getting it wrong. This includes the impacts of another country’s bribery and corruption legislation on your company and employees.
  • Understanding the bribery and corruption environment in which you operate
  • Undergoing a full fraud and bribery and corruption risk assessment
  • Training for employees and contractors operating in, or exposed to the environment
  • Strong, board-approved policies on fraud, bribery and corruption and money laundering, including dealing with gifts, hospitality and donations
  • Enhanced due diligence on third parties and their directors
  • An independent whistleblower program
  • Investigations
  • Monitoring and continuous improvement of the environment and contracts

What are the key actions that you can take now to understand your organisation's risks?

  • Assess any current bribery and corruption programs, is it more than just another policy collecting dust on your intranet?
  • Consider an independent assessment of how your current state compares with both the new standard and TI recommendations. How does it interact with other protections against financial or cyber-crime within your organisation?
  • Conduct a gap analysis, on all existing and new projects within the Latin American, or Asia Pacific regions
  • Conduct a peer review with other organisations operating within your industry in the same region or countries.
  • Design an action plan to address any areas where the company believes improvements are required.
  • Ensure the board is aware of and providing a strong endorsement for the program.

Hurrell Global Risk can assist you with your compliance programs to ensure that your organisation is resilient against not only the threat of bribery and corruption but also other financial crimes including cyber-crime risk from social engineering attacks and transferring data to a cloud-based model.
We have assisted a number of clients, in some cases reducing their monetary loss from internal fraud by 80% year on year.

Hurrell Global Risk also conducted financial crime risk assessments using our Omni-risk assessment tool to provide board and executive reports, inclusive of heat maps, which are compliant with ISO 31000 standards, in the case of one off-shore entity establishing the company were at serious risk of internal fraud, anti-money laundering and bad governance.

Our risk assessments have also proved useful in negotiating better premiums with insurers, where a higher level of compliance or remediated compliance is achieved.

About the author:
Paul Hurrell is the Managing Director of Hurrell Global, a fraud risk consulting and investigations management company based in Melbourne and Auckland. Paul is married to a Colombiana and travels frequently to Latin America. 

Hurrell Global can provide pre-contract probity and enhanced due diligence checks, fraud and cybercrime risk management assessments using our Omni-Risk financial crime software, and corporate investigations and recovery.  We also provide an OHS risk assessment tool for single or multiple site assessments.

Hurrell Global is a member of Scale Global, a collaboration of some of the leaders in the fields of, and specialising in, integrity, enhanced due diligence, disputes, recovery and business turnaround.

Scale Global has investigation assets in Melbourne, Sydney, Auckland, Buenos Aires, Bogota, Hong Kong, Shanghai, Bangkok, London, and Dubai.
CURRENT DEVELOPMENTS
New Zealand & Latin American Relations
(These articles are for LANZBC members only)
Mexico pushes for free trade deal with New Zealand
Big interest in New Zealand's position with Mexico
McClay visits Mexico ahead of Trade Ministers’ meeting in Chile
Steven Joyce: the opportunities to advance the TPP for New Zealand's prosperity
LATIN AMERICAN NEWS
(These articles are for LANZBC members only)
Peru leads region in putting new faith in global trade
Colombia: high hopes for green economy growth
Could Trump’s politics unite the divided countries of Latin America?
Carnival Could Inject $1.8b into Brazil's Struggling Economy
ARTS & CULTURE
Argentine rugby clubs tour regional New Zealand

A warm rugby welcome awaits Argentinean rugby clubs Hindú Club, Cuba Rugby, Rugby Newman, La Plata Rugby Club, Club de Regatas Bella Vista and Còrdoba Athletic-Rugby all of whom have chosen New Zealand to perform their pre-season training over the next few weeks.

With delegations of up to 100 people including players and staff, the clubs will play matches against regional clubs throughout New Zealand in March. READ MORE.

5 top places to visit in Mexico 

With its diverse and beautiful landscape, ancient culture, and endless beautiful beaches, it can be difficult to know where to start when planning a trip to Mexico. In this article, five of Mexico's best destinations are selected, just to make your decision that little bit easier... READ MORE

FACTS & FIGURES
In this section we will bring some facts and figures about Latin America that will give you an insight into the market, the culture or at least make you look smart if you drop it in a conversation when entertaining a client or at a business meeting.
  • Chile is home to Latin America's largest solar power plant. With an installed capacity of 210 MW. Source: lifegate.com
  • Paraguay is famous for being one of the first South American countries to establish independence from colonial rule. In 1811, Paraguay achieved independence from Spain after over 250 years of colonial rule. Sourcereference.com
  • Mexico, Brazil, Chile and Argentina are among New Zealand's top 60 trading partners. Dairy products dominate the export trade to these countries (over NZ$1 billion). Source: MFAT
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