Corporate Compliance in the Mechanism of International Financial Regulation

Abstract

The purpose of the article is to reconsider the traditional structure of international legal regulation mechanism in a specific area of social relations. In this regard, the author substantiates the peculiarity of element set of mechanism of international financial and legal regulation (hereinafter — MIFLR), inter alia defines the role of corporate compliance in the MIFLR. The author assumes that peculiar character of the object of regulation (financial relations) determines the design of the sources of their regulation. For its part, such peculiarity imposes special requirements on the effectiveness of implementing mechanisms of these sources of regulation in national legal systems. In this regard, the author states that corporate compliance is a necessary element of the mechanism of international legal regulation of financial relations. In the paper the systematic approach and a formal legal method along with a functional method are employed. It is concluded that corporate compliance acts as an important factor that influences the effectiveness of international legal regulation of financial relations. Corporate compliance functions both in its own private interest as well as in public interests, making a significant contribution to a state’s assessment by the international financial regulators. This assessment has reputational value, being objectified in various lists, ratings and indices, and is crucial in the context of globalization for a state to be recognized as a full-fledged participant in the international division of labor. The work contributes to the study of the problems of international normativity, the sources of international financial law, the mechanism of implementation of international financial law in national legal systems.