September 23, 2020

Wall Street Journal Article Highlights Growing Push to Equip Compliance Teams with Data Solutions

Yesterday’s Wall Street Journal highlighted the increasing emphasis and implementation of data analytics and monitoring tools in corporate compliance programs.

In particular, the article points to regulators’ heightened interest in data monitoring tools, and frequent leniency for the firms who utilize them for compliance processes:

The U.S. Justice Department in June instructed its prosecutors to ask companies that come under investigation whether their compliance teams have access to data, if it is being used to monitor for risks, and test policies and procedures. Authorities also have shown in recent settlements a willingness to cut penalties for companies that have implemented data analytics or monitoring tools into their compliance programs.

The push is incentivizing compliance officers to find ways to access financial and operational data, and adopt technology to better screen for risks such as bribery, which can lead to enormous fines if undetected. Businesses have long used data to drive decision-making in other areas of the enterprise, but adoption of analytics tools in compliance has been slow in part due to budget constraints, cultural hurdles and a lack of one-size-fits-all third-party solutions, compliance officers say.

At illumis, we’ve seen a similar growth in demand for data-driven technologies, especially around political contributions and outside business activities. As manual processes prove insufficient for both the demands of regulators and compliance teams, we’ve seen more teams turning towards data platforms to enhance transparency and reduce risk.

Our solutions for legal and compliance professionals provide timely, comprehensive data monitoring - across thousands of sources, including campaign finance contribution data to detect potential pay-to-play issues or policy violations, and other data sets for adjacent compliance needs. These solutions help our customers stay ahead of the curve - and any forthcoming enforcement actions.

If you’re interested in learning more, please reach out to [email protected].


compliance updates
We recently hosted a webinar around pay-to-play compliance with two experts on the topic—Ki Hong of Skadden, Arps, Slate, Meagher & Flom, and Heather Traeger of TRS, where we covered important, timely issues around the 2020 election. Given the complexity of pay-to-play regulations and potential severity of penalties for violations, as well as the historic political involvement in this election cycle, understanding and monitoring for these risks has never been more important.
compliance updates
We’re continually updating our political contribution compliance platform to better serve our customers. We’re excited to highlight the most recent additions in our latest feature update.
compliance updates
Last month, Compliance Week highlighted some of the compliance considerations for investment advisors (and other regulated firms) around the 2020 elections in a piece headlined “SEC ‘pay-to-play’ enforcement surge projected in 2021”. The article notes that tomorrow’s elections have spurred a massive wave of contributions - and are likely to also trigger a new wave of SEC enforcement.