COMPLIANCE AND DUE DILIGENCE AS MEANS OF ENSURING ECONOMIC LAW AND ORDER IN THE DIGITAL SPHERE

Abstract

The lack of systematicity in the legal regulation of the digital sphere creates opportunities for violation of the legal economic order. This leads to increased risk. Compliance and due diligence are appropriate for business risk management in the context of compliance with economic law and order in the digital sphere. In digital relations, the risk of establishing contractual relations with an improper subject has a specific manifestation: persons who communicate using the Internet are simultaneously in the real world and in the digital world. A digital profile of a real person is used to establish relationships in the virtual space. However, the real person and his digital counterpart may not match, which can make it difficult to protect the rights of the victim. The transfer of the digital profile of a non-existent or deceased person to persons who organize fictitious activities will allow the use of such digital profiles to conduct fictitious business activities. The theft of the real digital identity of the founder, managers of the enterprise allows to take control of the assets of the enterprise. At the state level, conditions must be created, including through the adoption of relevant legal acts, which will ensure the implementation of the approach for business activities in the digital space: one person – one digital identity, for which passports of economic entities can be used, and for digital identification of persons of managers, founders of enterprises technology of combination of biometrics and blockchain technologies. In modern conditions, compliance and due diligence can be used to manage this risk. The organization of intra-economic control relations must be rational. Therefore, the structure of the control units should not be too complicated, and in the case of involvement on the basis of an outsourcing contract to perform control functions, the terms of cooperation must be carefully determined based on the relevant provisions of the outsourcing contract and local acts of the enterprise. It is also advisable to conduct legal due diligence first, in order to reduce transaction costs, because this will immediately allow to obtain a state of compliance with the legal norms of the organization of the company’s activities. At the same time, a virtual enterprise should combine legal due diligence with informational due diligence. Due diligence can be a component of compliance under the condition of proper organization of external and internal business relations.