Compliance - The Need for Record Keeping
This column explores initiatives to improve the business climate of our nation and make 'Guyana Open for Business' a reality. Peter R Ramsaroop, MBA Chairman, RoopGroup
Stabroek News
April 20, 2007
In the not too distant past, compliance initiatives often were characterized by back-office operations that involved large volumes of records stored in large filing cabinets. Recently, this situation has changed. The growing number of regulatory mandates; the litigation consequences associated with those regulations such as the VAT locally; and accounting scandals in North America, have prompted many businesses to bring compliance initiatives out of the back office and into the boardroom.
High-ranking executives, such as chief compliance officers, and board members now actively oversee many compliance activities. As a result, it has become a critical priority for many companies to find technology solutions that quickly increase the efficiency of compliance processes and generate significant return-on-investment (ROI). A key requirement for achieving these objectives is selecting a solution that embraces the successful processes companies have used during compliance "projects" and makes them part of daily business practices.
Stabroek News has been relentless in their reporting on the Tender Board Process and the lack of compliance. We now see this process being closely monitored but without transparent record keeping, the process will still be questionable. We are also concerned about money laundering in Guyana. Many businesses deny such activities, but if asked to produce tax records on where millions of dollars have come from for investment purposes, they will find it difficult to do so.
The word "Compliance" in our local context is more associated with the selling of an asset such as a car or a house or land. Because of our poor public record keeping, the system is ineffective and corruption has taken over. I purchased my office building in February of 2006 and the previous owner would have had to obtain compliance on payment of rates and taxes prior to the sale. Recently I received a tax bill for 900,000 with interest of 450,000 for non- payment. Obviously I did not own the property for the previous year I should not have had to pay taxes. Now the burden is on me to prove to the city that I do not owe these taxes.
When companies concentrate on managing regulated business processes, demonstrable compliance simply becomes a by-product of everyday work activities. Compliance and records management solutions allow companies to turn compliance projects into ongoing processes that are conveniently and inherently carried out during the normal course of business. Technology that involves document management solutions effectively manage the massive amounts of content involved in compliance documentation and testing - providing the necessary foundation for storing, managing, processing and tracking content in a central, secure repository.
We recently had one local manufacturing company that obtained ISO (International Organization for Standardization) certification. This required precise documentation management. Document management software applications are available that enable organizations to effectively and efficiently capture, secure, share and distribute digital and paper-based documents and reports. So are records management applications which help companies control the creation, declaration, classification, retention and destruction of all types of business records - whether they are documents and graphics, or scanned images and email. Our courts of law are in desperate need of a Records Management solution where cases can be reviewed and with workflow process moved through the system more effectively. Workflow capabilities provide periodic "check-ups" on progress toward compliance goals by automating assessment, audit, remediation, approval and review processes.
Companies must make records management a priority given the need for compliance to regulatory mandates such as the VAT and the potential of business being named for money laundering activities.
Until next week, "Roop".