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Volume 27, Issue 3

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Oversight Systems Delivers FCPA Automated Transaction Monitoring Solution

ATLANTA – In direct response to the Department of Justice (DOJ) and SEC giving organizations credit for thorough transaction monitoring as part of their Foreign Corrupt Practices Act (FCPA) programs and its desire to help corporations combat bribery and corruption, Oversight Systems announced today an updated FCPA solution. The use of transaction monitoring software helps prevent corruption and provides a critical foundation for continuous improvement programs.  Oversight’s updated FCPA & National Security Risk Solution is a rigorous, automated solution for quickly uncovering potentially damaging and illegal violations and leveraging analytics to strengthen companies’ overall FCPA compliance programs.

 

Oversight Systems’ Automated Solution Replicates the Morgan Stanley FCPA Protections Lauded by DOJ

Multinational corporations’ best practice compliance practices are being rewarded as witnessed by the recent exoneration of Morgan Stanley in the Peterson case. This release from blame was based on their proven, solid FCPA compliance activities -- including the thorough ongoing monitoring of their transactions -- and provides companies with a stellar example of how to successfully manage their compliance process and avoid potentially devastating enforcement action. In addition, the DOJ set an important precedent by publicly acknowledging that it “declined to bring any enforcement action against Morgan Stanley,” based in large part on the firm’s robust stance on ongoing transaction monitoring, “which provided reasonable assurances that its employees were not bribing government officials.”

 

Corporate Risks, Compliance Costs and Demands Are Increasing

The average FCPA penalty cost has risen to over $66 million with the total average cost of investigating and responding to issues of bribery and corruption coming in at over $100 million, according to analyst firm, Corporate Integrity. “Along with higher costs and tougher government FCPA enforcement, organizations are facing increasing risk exposure as they expand operations and business relationships globally,” said Patrick Taylor, CEO of Oversight Systems.  “Oversight’s unique value is our ability to automate the in-depth analysis of all transactions and associated behaviors across an organization. We provide beyond human analysis and simple alerts to track, prevent and stop corruption, strengthen compliance programs and deliver critical proof of good compliance practices.”

The Oversight FPA Solution

Oversight’s FCPA & National Security Risk Solution includes new, core functionality in the following three areas:

1.       Automated Risk Identification and Tracking – Oversight delivers active policy management including a detailed exception remediation process that can make monitoring more complete, efficient, and cost effective. High risk transactions are automatically triaged and distributed so that companies can quickly and effectively verify adherence to policy directly with the people involved. This automated email dialog and validation process reinforces FCPA policy by identifying transactions that may be in the grey area and ensuring they are in compliance. This functionality helps companies effectively set the tone at the top levels of their organizations on a consistent global basis.

BOTTOM LINE: Oversight’s automated risk identification and tracking means that companies can proactively address potential FCPA risks without having to solely rely on a hotline to identify when a violation may have occurred.

2.       Global Risk Analysis – Oversight delivers a holistic view of transaction risk across the entire global landscape, including multiple data sources and all associated business processes, activities, and participants. Delivering more than simple black and white analysis, Oversight uses sophisticated Big Data analysis to decipher the grey areas of transactions. Oversight carefully and continuously examines all transactions across an organization’s infrastructure, intelligently uncovering patterns revealing risks, enabling companies to predict potential FCPA violations and take action to stop them before significant damage is done.

BOTTOM LINE: Oversight can easily recognize when politically exposed persons, consultants, contractors, partners or customers receive unwarranted discounts or questionable, if not illegal, payments or benefits.

3.       Suspicion Index – As it continuously monitors, Oversight applies multi-layer intelligence to all entities associated with an organization whether that is an employee, partner, distributor, vendor or agent. Oversight scores participants and the transactions they touch to identify suspicious behavior, track and gather evidence of the behavior, and link to supporting transactions as needed for enforcement efforts. Oversight then automatically communicates a suspicion index to corporate management, enabling them to take critical, preventive action. With this knowledge, the greatest risks are identified for additional training or for an update to policies.

BOTTOM LINE: Corporations can quickly identify the riskiest transactions and the people and/or organizations involved.

The Oversight FCPA & National Risk Solution is available immediately. For more information, email sales@oversightsystems.com, or call the company at 770-984-4650.