Courts, regulators and government agencies often appoint independent integrity or compliance monitors to oversee the remediation of criminal, regulatory and compliance deficiencies at organizations that have been under government investigation. While monitorships have been predominantly a tool of the U.S. federal and state regulators, their use is being adopted in jurisdictions globally. 

Kroll’s professionals have extensive experience in serving as independent monitors, as well as providing specialized expertise to existing monitors, both in the U.S. and worldwide. Our multidisciplinary monitorship team includes former regulators, lawyers with private and prosecutorial backgrounds, compliance professionals, forensic accountants, investigators, financial and research analysts, data analysts and information technology specialists. They are joined by Kroll’s industry and regional experts, and members of our Financial Crime Compliance, Data Analytics and Forensic Accounting practices. 

Our risk-based approach to monitorships and our experience working with regulators globally enables us to effectively and efficiently meet the government expectations without incurring unnecessary expense for the monitored entity. We are mindful that the purpose of a monitorship is not to micromanage the monitored entity’s business but to engage in targeted and efficient document and systems reviews, interviews of key staff, and independent testing to assure all parties that the monitored entity has fulfilled its obligations. This approach allows us to serve as a trusted bridge between the monitored entity and the government. This is done by providing the government access and insight into the entity's progress toward reforming its business practices and culture, while also ensuring that the monitored entity understands and takes the steps necessary to meet the government’s expectations.

Case Study – Assisting the Monitor of a Bank with a Review of the Bank’s Global Compliance Processes

As part of a deferred prosecution agreement (DPA) with the U.S. Department of Justice, a bank had appointed a monitor to evaluate the effectiveness of the bank’s anti-money laundering (AML) policies, procedures and internal controls. The monitor engaged Kroll to provide specialized expertise. We reviewed the existing global compliance processes covering sanctions, AML, KYC, risk assessment and independent testing to identify weaknesses and contribute to recommendations for improvements and progress toward DPA goals.

Case Study – Assisting the Monitor of a Russian Telecoms Company with the Review and Testing of Internal Controls and Systems

MobileTelesystems (MTS), one of the three largest telecom and digital services companies in Russia, was found to have bribed government officials in Uzbekistan in exchange for licenses to construct and operate mobile telephone networks in that country. 

To resolve the matter, MTS entered into a DPA with the U.S. Department of Justice, which included the appointment of an independent monitor to oversee MTS’s corporate compliance program. The monitor engaged Kroll for specialized expertise in several areas. We reviewed and tested the company’s internal controls and systems for financial accounting, payments, procurement, recordkeeping and financial reporting. We examined the structure and operations of the company’s internal audit department and assessed the company’s counterparty due diligence and other compliance risk assessment processes. Finally, we reviewed the selected related-party and M&A transactions.