Related-Party Transaction Monitoring Agent
Detects, classifies, and tracks related-party transactions across the organization to support disclosure accuracy and conflict-of-interest oversight.
Related-party transactions must be identified, approved through appropriate governance channels, and disclosed accurately in financial statements and proxy filings, but the underlying relationships (officers, directors, significant shareholders, and their affiliated entities) are rarely maintained in a system connected to transactional data
Finance teams typically rely on an annual questionnaire process to surface related parties, which misses transactions that occur or evolve during the year and leaves disclosure teams reconstructing activity retroactively
Undisclosed or improperly approved related-party transactions are a recurring source of SEC comment letters, audit findings, and governance concerns
Cross-referencing vendor, customer, and employee master data against a constantly changing related-party list at transaction volume is impractical without automation
The agent maintains a continuously updated related-party registry built from D&O questionnaires, cap table and ownership data, and org charts, then screens vendor, customer, and intercompany transactions against that registry as they post to the general ledger. It flags matches and near-matches, such as shared addresses, tax IDs, or beneficial ownership overlaps, for governance review, and routes flagged transactions through the appropriate approval workflow. Disclosure schedules for financial statement footnotes and proxy statements are compiled continuously from confirmed related-party activity rather than assembled from scratch at filing time.
Build the Related-Party Registry
- Ingest D&O questionnaire responses and cap table data
- Map officer, director, and significant shareholder affiliations
- Update the registry as relationships change during the year
Screen Transactions Continuously
- Match vendor, customer, and intercompany transactions to the registry
- Identify indirect matches via shared addresses, tax IDs, or ownership
- Score and prioritize matches for governance review
Route for Approval
- Send flagged transactions through conflict-of-interest approval workflow
- Track approval status and required documentation
- Escalate unresolved or high-value flags to the audit committee
Compile Disclosure Schedules
- Aggregate confirmed related-party activity by category and counterparty
- Draft footnote and proxy disclosure schedules
- Reconcile disclosed amounts to underlying transaction detail