Here’s a new concept and process for how multinational companies can handle the mandatory disclosure (DAC 6) reporting. The concept helps companies tailor a solution that will make the MDR process work in the organization.
The concept includes, among other things, the following considerations:
- Multinational organizations find it is important to have a good process regarding the collection of local information, which is often required if you do not have all the information stored centrally.
- The key is to support the organisation to identify transactions and help them to report information for decision-making within the 30 day deadline. This requires a robust process, both for centralised and decentralised organisations. This step is rarely something which can be handled by external people and will involve internal people form many jurisdictions and functions. To succeed you need to provide guidance and to make the process as simple as possible.
- Many multinationals have identified the need to tailor the process. This includes identifying typical transactions that occur within the company group, often per jurisdiction. In the beginning many groups will use external experts for assessment and identification of which transactions should be reported. However, after a while you will have built up a knowledge database of transactions in your group, including those which are reportable and those which are not, and most groups will rarely have a need for help with assessments after the initial period. This approach will help your internal people and will make the process practical for them.
- When you have a process in place, you need to make sure that you comply with local requirements and deviations which affect your organisation, e.g. professional privilege, and that you can collect transactions reported by external intermediaries for your control and archiving.
- Finally, you need to support your organisation with a process for converting the collected information to the filing format quickly. A system solution will help you to do this quicker than to have IT people, possibly in several jurisdictions, on constant stand-by, since the reporting is on a rolling 30 day basis.
Do you need help to put in place a process to handle the steps above in your organization? Contact email@example.com to set up a meeting to discuss how we at Blika can support your organisation.