Managing an international portfolio of entities is complex. Legal and compliance teams must monitor regulatory updates and stay on top of compliance requirements and deadlines in each jurisdiction. They must also keep track of documents for multiple entities across multiple countries, any changes to those, manage format consistency, and store historical data and documents. All this requires considerable support and experience. Moreover, varying quality of data as well as language barriers adds an additional burden.
As regulatory compliance grows in complexity, technology is playing an increasingly vital role in global entity management. Entity management systems can help address the needs of both US and international entities by providing much-needed visibility and control into global compliance obligations.
In this article, we explore the benefits that technology brings into global entity management and how it has helped increase the efficiency of global compliance operations.
Data centralization and security
Historically, legal and compliance teams would need to coordinate the management of their international entities on a local level. To do so, they would rely on help from multiple local and/or regional vendors or law firms and employ larger internal teams to help coordinate all the work. This way of managing global entity compliance is still common today. Even when an entity management system is used, these systems were not typically designed to manage a global portfolio of entities and lacked the ability to track compliance obligations for each entity in each jurisdiction.
Thankfully, advancements in technology around entity management have significantly reduced these burdens for legal and compliance professionals. Beyond being able to see and complete compliance obligations, these systems also offer the ability to house all company information and documentation in one place, acting as a central repository to manage vital company data. This eliminates the need to jump from one system to another to access local entity information and instead gives these teams easy access to a single source of truth.
Using a centralized system also ensures corporate data is safeguarded thanks to stricter controls over system access than traditional approaches allow.
Streamlined and customized workflows
When dealing with global entity compliance, legal and compliance teams must consider that different jurisdictions have different requirements. Integrating these differences and ensuring each obligation gets met can be time-consuming. Global entity management tools can help streamline workflows so companies can better manage their international entities. Additionally, they are better equipped to handle changing laws and regulations across jurisdictions, such as UBO reporting, KYC requirements, director requirements, economic substance requirements, annual filings, etc.
The key benefit here is customization - the ability to create workflows that address each organization’s unique needs. With a seamless and customized workflow, many of the steps involved in completing tasks, obtaining signatures and required documentation, ongoing filings, and storing data can be digitized.
General counsel and their teams are leaned upon more and more to provide advice and support on many business matters such as global strategies, risk assessments, and corporate transactions. Data is the lifeblood for many of these insights. With greater reporting, comes actionable information and faster results.
Integrating the right entity management software into an organization's compliance process provides the confidence to know that their insights are informed by the most current and accurate data. Centrally stored and easily updatable, legal and compliance teams can quickly respond to information requests with the confidence that they have complete and real-time visibility into all entities across different countries and regions.
With in-depth insights at their fingertips, legal and compliance teams can foster greater collaboration with executives.
Tracking of tasks and deadlines
A straightforward way of providing more control and visibility into all compliance obligations is to leverage an integrated compliance calendar with an entity management system. Having unique timelines in place helps teams stay ahead of compliance due dates and address local requirements in order to avoid fines and penalties. With a consolidated view, it is much easier to anticipate and address issues promptly.
Looking to the future
Technology will continue to play an important part in business, enabling growth and creating efficiencies by facilitating the completion of complex tasks, especially when doing business in multiple jurisdictions.
But technology is only half of the battle. Systems are only as good as the information that is fed into them. In the case of managing entities across multiple countries with differing and ever-changing regulations, this information must be consistently sourced, and systems updated by expert professionals.
To effectively manage global entity compliance, organizations must pair technology with expertise across multiple jurisdictions around the world to help mitigate corporate compliance risks and ultimately reduce costs. In fact, technology is just one of the four pillars of effective global compliance.
With a trusted partner, one who has a global presence and a team of knowledgeable professionals with in-depth local experience, organizations can couple this with their technology suite to overcome the challenges of global entity management.
A winning formula for global entity management
CT's winning formula for global entity management includes experts in over 150 countries, a dedicated, single point of contact through which all compliance needs are funneled, and the same best in class customer service in and outside of the U.S.
Our entity management system – hCue – is a centralized platform that provides the essential oversight function and issues notifications about upcoming obligations. We are continuously improving and innovating to provide our clients access to the most up to date content regarding regulations and jurisdictional obligations. Our compliance solutions help to reduce workloads and risks as you do business around the world.
Trust CT Corporation to navigate compliance anywhere you do business. To learn more about our Global Corporate Services and how we can help to better manage your global entity compliance needs, contact a CT representative at (855) 444-5358 (toll-free U.S.).