The monitor must also be independent of both parties – hence the title – and not just the party of the company. Independent observers have become a common feature of transaction agreements when public enforcement authorities declare themselves willing to defer or waive the prosecution of a financial enterprise. Surveillance regulation places state oversight in a company`s corridors and increases use for new failures. The growing experience of independent monitors has led to a useful level of knowledge about backs and don`ts for companies in relationship management. Monitorin Ellen Zimiles, head of global investigation at Navigant Consulting Inc. and former prosecutor, began testing the software used by Standard Chartered and found that the bank`s process neglected millions of potential violations. 73 See Sue Reisinger, “In Rare Move, Judge Imposes Own Monitor in ZTE Plea Deal,” The American Lawyer (March 29, 2017), www.americanlawyer.com/id=1202782436926/In-Rare-Move-Judge-Imposes-Own-Monitor-in-ZTE-Plea-Deal?mcode=0&curindex=0&curpage=ALL (with the Http://www.americanlawyer.com/id=1202782436926/In-Rare-Move-Judge-Imposes-Own-Monitor-in-ZTE-Plea-Deal?mcode=0&curindex=0&curpage=ALL (resulting in James Stanton being a civil and bodily assault lawyer, 93 Morford Memorandum, note 11 above, to 7. Critical, undisclosed or persistent misconduct may invalidate the terms of the transaction and result in an extension of the duration and scope of the oversight. 123 The HSBC case represents the public proceeding of a party. seeking access to a monitor`s report, however, is not the only example of this kind. See In re Depuy Orthopaedics, Inc. Pinnacle Hip Implant Prod.
Mr. Liab. Litig., No. 11 MD 2244, 2013 WL 2091715 (N.D. Tex. May 15, 2013) (order for the release of the monitoring report on a product liability issue). “The effective monitor is the one that doesn`t support the compliance team and does everything. The monitor is the one who highlights weaknesses and acts as a coach to develop a plan to correct them,” he said.
The DOJ list is an important step in improving the transparency of the department`s use of corporate monitors and there is no doubt that controls are maintained. Given the high cost and intrusive nature of a corporate compliance monitor, companies should try to avoid the introduction of a monitor to resolve government investigations.