In the accompanying article, Sidley lawyers detail steps for companies to take in advance of working with corporate compliance monitors. Key steps include making sure the monitor is vetted, clarifying its mandate, and fostering a cooperative relationship.
Federal and state agencies settling corporate enforcement actions have frequently appointed independent monitors to review the effectiveness of compliance controls at companies, particularly when addressing corruption offenses or money laundering and sanctions violations within banks.
More recently, foreign government agencies have begun using corporate compliance monitors to ensure companies are properly prepared to prevent and detect misconduct. Some companies have even found themselves under the scrutiny of multiple monitors at the same time.
Corporate officers and directors first confronting the reality that they will have to operate with the oversight of a monitor often have no frame of reference for understanding the relationship and need to get up to speed fast.
This article contains some initial steps company leaders should focus on when preparing for a monitor.