Inspiring Women in Law - An Interview with Melissa Diaz, Compliance manager for Central America and The Caribbean at Inchcape

Latin Counsel has spoken with Melissa Diaz, Compliance Manager of Inchcape Central America and the Caribbean , about the challenges and opportunities of her job and the particularities of working in compliance for the automotive industry.

Throughout her career she has specialized in Corporate, Environmental and Compliance Law, in addition to being a certified ISO auditor.

Melissa has a Law Degree from the Universidad Escuela Libre de Derecho de Costa Rica, specializing in Notary and Registry Law, and Environmental Engineering. She is currently finishing a Master’s Degree in Compliance and Risk Management at Aden Business School and George Washington University.

She is a member of the Costa Rican Bar Association and has held various positions in the consumer, cement and construction industries.

Latin Counsel: How would you describe working in compliance in Costa Rica, Panama and the Caribbean in the automotive industry?

Melissa Diaz:

Doing compliance in Central America and the Caribbean presents a unique set of challenges and opportunities. Here are some key aspects.

1. Regulatory diversity.

2. The process of adapting to regional policies.

3. Organizational culture.

Each market has its own legal and regulatory framework, which requires careful adaptation of the implementation of our policies. Especially when it comes to anti-corruption, data protection and labor issues. However, this goes hand in hand with the business culture that significantly influences the successful implementation of the Compliance program, which means that if there is no adequate thread of conversation between the business area and Compliance, the incorporation of the program would be done by obligation and not by conviction.

In short, compliance in Central America and the Caribbean is a dynamic process that requires an adaptable and proactive approach, focused on ethics and organizational culture.

LC: What are the main regulatory challenges facing the industry today?

Melissa Diaz:

International trade and tariffs: Trade tensions and changes in tariff policies can affect supply chains and import/export costs.

Environmental regulations: With increased pressure to reduce carbon emissions, manufacturers must comply with stricter emissions and sustainability regulations. This includes the transition to market-specific electric and hybrid vehicle sales.

Money laundering regulations: This represents a significant challenge that affects both the economy and the social and political stability of the region. Tackling money laundering in Central America and the Caribbean requires a comprehensive approach involving governments, the private sector and civil society, strengthening institutions and promoting regional and international cooperation.

In other words, the automotive industry faces a dynamic and complex legal environment that requires adaptability and proactive compliance by civil society, the business sector and the public sector in each market.

LC: What are the main compliance risks faced by the automotive sector in CARCAM and how do you manage them in your role as head of the regulatory compliance program in this region?

MD: All companies have compliance risks, but at Inchcape we are constantly preparing ourselves by updating policies and processes. In Inchcape’s compliance program is based on five pillars: personal data, liability of legal entities, money laundering, corruption and bribery, and fair competition. We have a comprehensive monitoring and continuous awareness and training schedule on these topics to manage the risks linked to these pillars.

Within my role, I am a believer that a compliance program on paper looks great, but it is not going to be effective if you don’t work on corporate cultural change. This requires tailor-made work for each country (market), knowing the target audience and speaking their language.

Risks decrease when there is continuous training and education on internal policies, which must be clear and aligned with the business, thus ensuring compliance and their proper application.

Monitoring, audits, whistleblower channels, risk assessment, analysis of third parties and business partners are just some of the many elements that must be considered and developed when identifying and knowing how to manage an associated risk.

These strategies make it possible to proactively manage compliance risks in the automotive sector, protecting the company and promoting a culture of integrity and conscious responsibility.


LC: In your experience, how has the compliance approach evolved in the automotive industry, and what best practices do you recommend to mitigate legal and regulatory risks?

MD: We are global leaders in the industry, and we like to do business safely, responsibly and to the highest degree of legality for the third parties with whom we do business. This is important to tell a little bit about the evolution within an industry that is commonly established by family-owned companies with a more simplified control and compliance culture.

When we talk about evolution we have to mention "Internal Audit, Internal Control and Compliance" teams in charge of control and compliance within the company that play a transcendental role in our industry. In order for these areas to play a successful role, they must know the business and also implement controls, processes and policies adapted to the country and target audience, with this we achieve not only a positive impact, but it becomes a process that is part of the functional operational structure of the business.

LC: How do you manage the balance between the demands of the automotive corporate environment and respect for professional ethics in your management role?

MD: This may be one of my favorite questions and one that I enjoy answering the most, because it is a challenge for the lawyer in charge of the compliance program, as we must get out of the comfort zone and enter the world of understanding and knowing the process, industry or area of the business that is going to impact my procedure.

The balance is based on knowing the business primarily and also understanding Compliance as it is, a great ally of the business, not imposing or rigid. Additionally, knowing how to communicate and simplify the issues makes it easier to implement and understand the employees, "-speaking the same language-", in my personal opinion, is the only way in which you can have a positive impact and develop a culture of control by conviction and not by obligation.

LC: What factors do you consider have been key to your success in the sector, and how do you think the role of women in this industry has evolved?

MD: The key to the success and continuity of any leader (regardless of gender) is perseverance, teamwork, solid knowledge and humility. Without these elements a leader could not create solid and high performance teams, and above all always be true to your ethical and personal training beliefs that at the end of the day are the ones that always come into play when it comes to making decisions.

I believe that it is increasingly common to see women in roles that were previously dominated by men. This has nothing to do with equality of conditions, gender or a path towards an equitable future, I believe it is because of the way in which women have been able to demonstrate to the different industries that they can lead positions and contribute great value, knowledge and experience at decision-making tables.

In the specific case of Inchcape, there has been a change at the Americas level, today there are 36% of women in leadership positions and 44% at the CARCAM level.

LC: Because of your legal background, playing a strategic and high-impact role in a sector traditionally dominated by men, what have been the biggest challenges or obstacles you have faced throughout your career?

MD: I keep my charm in talking about organizational culture, yes organizational and not from the point of view of the country in which I work. To date, I have been fortunate to work in industries where the male figure is prevalent to the female and this has been mostly experiences of much respect and teamwork.

I must be honest and say that one of the challenges I have faced is the constant need to demonstrate aptitude, so when working in industries where the work culture is competitive this is something quite common in women.

The challenge is not having male colleagues or leaders, the challenge is in fostering consistent professional connections, mutual respect, participating in projects of importance to the business and above all never leaving self-care aside, prioritizing personal wellbeing and setting boundaries under the highest ethical standard and mutual respect are some of the challenges that require effort and determination, but can also lead to significant growth both personally and professionally, contributing to positive change in the industry in my role as a woman.

LC: What advice would you give to future generations of female lawyers who want to develop in such competitive industries?

MD: My best advice is: Don’t be afraid to work in male-dominated spaces. Look for mentors within the organization, not only in your area of compliance but in the business, the best gift I have received in the workplace has been to have experienced leaders, great professionals who have been my trainers and growth guides throughout my career.

Finally, remember that every effort has its reward; professional growth is not accelerated, be patient, be brave and never hesitate to contribute an idea, always in a firm and respectful manner, but above all, have a positive impact on companies.

The lawyer must be dynamic and know the business so as not to fall into structures and contributions with a legal percentage that does not match the business and operational reality.