VISUAL COMPLIANCE II WEB SERVICE EIM

Overview

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Visual Compliance II Webservice EIM Overview

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Notice To Reader This document contains confidential information which is proprietary to MSR. This information is provided for the sole purpose of permitting the authorized recipient to evaluate the MSR service. In consideration of receipt of this document, the recipient agrees to maintain such information in confidence and to not reproduce by any means or otherwise disclose this information to any person outside the recipients organization nor to any person not directly responsible for the evaluation of its contents. Visual ComplianceTM is a registered trademark.

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Visual Compliance II Webservice EIM Overview

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Export Compliance and Restricted Party Screening What is it?

In todays demanding new Global business environment, it is more important than ever to know your customers. Companies are now held responsible for the ultimate fate of their goods - even after delivery - and the penalties for non-compliance are severe, including monetary fines, revocation of export privileges, and even criminal charges. With these potentially damaging ramifications, export compliance is no longer an option; it is a necessity. One of the main components of export compliance is Restricted Party Screening (RPS). The RPS procedure consists of assessing the individual name or location of a potential client against a large database of US and Foreign Government control lists, including those compiled by the State, Treasury and Commerce Departments. If a name being screened shows up on any of the Restricted Party lists, there are restrictions upon business activities with that entity and/or country. Many companies choose to automate their Restricted Party Screening process by integrating it into existing business practices, utilizing MSRs VISUAL COMPLIANCE II WEB SERVICE ENTERPRISE INTEGRATION MODULE (EIM).

What is the VISUAL COMPLIANCE II WEB SERVICE EIM?

The VISUAL COMPLIANCE II WEB SERVICE EIM is an integrated programming method that performs your RPS screening requirements automatically, as charged by your ERP or other business systems. For example, when a potential order is first entered into your system, you can immediately screen the name and destination country against the required Government lists before moving forward. The flexibility of the system allows you to choose any operational area to implement this process, such as e-commerce processes or shipping transactions. In addition to the above, an EIM implementation also allows you the opportunity to immediately affect your business processes. If a positive screening result is returned, the applicable process can be stopped, or directed to the appropriate individuals through escalation functionality. The example on the following page illustrates the procedure in more detail.

A quick word about Web Services

Built on industry standards, Web Services provide a means for software to interoperate across different programming languages, platforms, and operating systems. Web Services deliver efficient and cost effective data communication between different computer systems across any distance.

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Visual Compliance II Webservice EIM Overview

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How does the EIM solution work?

In straightforward terms, the EIM is a computer program. To access it requires the addition of a small block of program code to your ERP/Legacy accounting or order entry system. What this additional code does is prompt your existing business system(s) to access MSRs VISUAL COMPLIANCE II RPS database to screen a name or location against government restricted party lists. It does this by communicating with our data servers across the Internet, as illustrated below:

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Visual Compliance II Webservice EIM Overview

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When and Where should we perform our Restricted Party Screening?

Where in your business process the VISUAL COMPLIANCE II WEB SERVICE EIM performs this function is up to you. Using the sample Decision Tree model (illustrated below), results returned to your business system can dictate how the process moves forward. Again, the specific actions taken can be dictated at your own discretion. If you want a positive search result to halt the order process, or instead notify the user of the result, the power rests in your hands.

Order is placed or download requested

Sample RPS Decision Tree

Restricted Party Screening is conducted

No

RPS Match found?

Yes

Type of Result?

Warning Result

Exact Match

Order is processed or download completed

Continue to Process request

Notification of Match provided; order held

Email sent to Compliance group/person

Process complete

Compliance Group investigates details of match

No

RPS enforcement confirmed?

Yes

Cancel order/ Download

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Visual Compliance II Webservice EIM Overview

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How is the EIM implemented?

The implementation of our EIM service is very straightforward. After initial discussions with your IT department about the specifics of your existing business system, we will provide the appropriate technical specifications necessary for your IT department to utilize the service. The entire process can be completed in just a few days. Once the installation of the code is completed, you are ready to begin testing the power of the VISUAL COMPLIANCE II WEB SERVICE EIM.

Couldnt we do this In-house?

Companies who want to develop their own screening systems begin with the best intentions, however soon realize that it is a massive undertaking and may not be the best way to spend IT resources. While the technical development of this type of system is resource-intensive, the maintenance represents an even more significant challenge. For example, keeping screening lists current is a constant demand. While most government agencies make their information available online, the majority of the data is not easy to utilize and is often not current. Much of it requires substantial effort to extract and quantify, including the labor of editing, reformatting, and translating the data to a uniform database layout. Experience shows that if youre only screening some of the lists, you may as well not screen at all. Knowing where to go and how to get exactly what you need takes a long time to learn, and with many lists to review and update, it is a demanding job to say the least. For this need, MSR employs a research department whose only responsibility is staying on top of the daily Government changes to screening source data. In addition, the technical maintenance necessary to maintain 7/24 levels of service is a constant demand, as are requisite back-up sites and support. In short, developing your own solution represents a huge internal commitment. Because this is our core business, MSR can leverage our investment in system development and maintenance to deliver significant value to our customers.

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