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Data Completeness is Crucial for Your Compliance Efforts

Data is one of the most valuable assets a modern business has at its disposal. But donu2019t let u201cvalueu201d turn into u201ccostu201d in the form of unwanted financial penalties. Read the PDF for more details about it at Shield or visit us at https://bit.ly/2ZDI5Ex

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Data Completeness is Crucial for Your Compliance Efforts

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  1. SHIELD Data Completenessis Crucial for Your Compliance Efforts https://www.shieldfc.com/

  2. Dataiscrucialtothemoderneconomy,particularlywhenitcomesto financialinstitutions (FIs).Theirabilitytostore,access,andanalyzemassive amountsofdatainaneffectiveandefficientmannergreatlyaddstotheir competitiveadvantages. Butdatacollectionisn’tsolelyaboutthat.FIsmustalsoensurethattheyare properlycollectingandstoringdatainordertoachieveregulatory compliance.Capturingandprocessingdatatoachieve “datacompleteness” meansthattheycanshoweveryactionanditsassociatedpaperwork. What’smore,thismustbedoneinsuchawaythatitisavailableata moment’snotice,withzeromarginsforerror.Forexample,theDodd-Frank actrequiresafulltimelineofeventsincludingtradesandcommunicationsto beprovidedwithin72hours,forSWAPmarketparticipants. Severefinesfornon-compliance Afailuretodothiscanresultinseverefinesfromglobalregulators — ranging fromtensofthousandsuptomillionsofdollars — fornotproperlycapturing informationinaneffectivemanner. Forexample,inNovember2020,SantanderInvestmentSecuritiesagreedto payafineof $150,000totheUnitedStatesFinancialIndustryRegulatory Authority (FINRA) fornotcapturingaround6millionemailsformorethan100 employeesoverafive-yearperiod. https://www.shieldfc.com/

  3. Thatwasnothingcomparedtotheenormous $4.5millionfineissuedto CitigroupbyaU.S.regulatoratapproximatelythesametime.Thefinewas relatedtothedeletionof2.77millionaudiofilesthatincludedtrader conversationrecordings. Inbothcases,theFIsdeniedpurposefulwrongdoing.Instead,itseemslikely thattheproblemwastheresultofinsufficienciesandflawswiththewaythe archivingandassociatedmonitoringsystemsweresetup.TheSantander incidentinvolvedacodingproblemfollowingthemigrationofoneserverto another. Regulationsvary,datarequirementsremain Ultimately,thereasonwhythisdatawasn’tgatheredsimplydoesnotmatter. Whetherit’swillfulwrongdoingorabadlineofcodethat’sbeenerroneously implemented,theproblemcomesdowntoabinaryquestion:HaveFIsgotthe correctdatatoreport?Iftheyhave,itcanbeassessedbyregulators.Ifthey haven’t,there’sabigproblem. That’sthecaseevenifallofthetransactionsthathavetakenplaceareentirely correctandbythebooks.Notcapturingandprocessingthenecessarydata couldbethecostliestmistaketheyevermake. https://www.shieldfc.com/

  4. Regulationsdifferdependingonwhereyouarearound theworld,andnewregulationsareaddedallthetime. Butwhilethefineprintcanchange,theoverallmessage of “saveeverybitofinformationyoucan” remainsthe same.Inaworldinwhichthatincludesnotjusttrade information,butalsoemails,phonecorrespondence, messagesonworkplacecommunicationplatformslike SlackandMicrosoftTeams,andeven (increasingly) personalcommunicationchannelslikeWhatsAppand SMStextmessages. Howdowesolvethat Tohelpcompaniesstayontopoftheserequirements,andhavethemost up-to-dateinformationtothematalltimes,Shield’splatformgeneratesa DataCompletenessReportforcustomersatthecloseofeachday. Shieldalsogeneratesalistofallofthejournaledemailsmadetheprevious day.Importantly,thiscomeswithasummaryofnotjustwhatisthere,but alsowhatisn’t — meaninggapsidentifiedusingmetadata.Adashboard completenesswidgetcanshowusersthedailysummaryreport.Thereport runsdailyafterafullimportofdatahasbeencompleted.Indoingso,Shield makesitmucheasiertocaptureandprocessdataforregulatorypurposes. Dataisoneofthemostvaluableassetsamodernbusinesshasatits disposal.Butdon’tlet “value” turninto “cost” intheformofunwanted (and unnecessary) financialpenalties.Byemployingtherighttools,FIsneed neverworryaboutnothavingtherightdataattheirfingertipstomeet whateverregulatorydemandsarethrownatthem. Website https://www.shieldfc.com/

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