Case study
Anticipating risk: How JGC Holdings Corporation transformed trade compliance
How a leading engineering firm leverages ONESOURCE Denied Party Screening to mitigate risks and free experts for strategic initiatives
Experiencing evolving geopolitical climates
JGC Holdings Corporation is a leading engineering company in Japan, managing large-scale LNG EPC projects exceeding 1 trillion yen per case. Operating on the international stage, the company faces significant exposure to national security policies and geopolitical risks inherent to global business operations.
Recent sanctions against Russia and export regulations linked to U.S.-China tensions have created numerous operational challenges, including escalated construction costs and schedule delays. For continued operational stability, JGC recognized the critical need to establish a system capable of rapidly and accurately tracking global regulatory changes.
In 2023, the company established a new Economic Security and Geopolitical Risk Task Force dedicated to swiftly identifying geopolitical risks, analyzing political impacts, and reporting findings to management. This strategic initiative aims to minimize risks arising from geopolitical factors while maintaining compliance with evolving international regulations.
220+
Countries and regions covered
200+
Specialized staff monitoring regulations
365
Days of continuous monitoring annually
Navigating operational challenges
The continuous establishment of new businesses and significant increase in operational volume created mounting trade and export control risks for JGC. The company faced multiple interconnected challenges:
- Complex regulatory environment. Daily screening of transaction partners and customers against export regulations and sanctions lists proved time-consuming and burdensome when done manually.
- Resource constraints. The accelerating shortage of specialized personnel in export control made it difficult to increase staffing. Valuable experts were consumed by manual screening processes rather than strategic risk analysis.
- System limitations. Previous systems presented significant issues including excessive information, poor usability, and limitations on the number of accounts, making collaboration difficult.
- Stakeholder expectations. Business partners, customers, investors, and financial institutions increasingly demand transparency and assurance regarding trade compliance practices.
“By leveraging Thomson Reuters system for high-precision automated screening, we aim to utilize the time saved through automation to implement new initiatives based on a risk-based approach. This will help us further strengthen our compliance foundation and enhance our overall compliance efforts.”
Takao Sasayama
Manager, Legal and Governance Unit Trade Compliance Team
Searching for a solution
JGC recognized that overcoming these challenges required leveraging technology to streamline operations and mitigate compliance violation risks arising from information shortages and oversights. After conducting extensive research, the company discovered Thomson Reuters ONESOURCE Denied Party Screening.
“After receiving a detailed explanation of the functions and features of ONESOURCE Denied Party Screening, we were confident that it could address almost all the challenges of our existing system, leading to our decision to adopt the solution.” — Kaori Matsumura Assistant Manager Governance Headquarters Legal and Governance Unit Trade Compliance Team
Some of the top features for JGC included:
- User-friendly design. The new system's intuitive interface and simple operation were significant factors in the implementation decision. Employees from various departments such as sales and procurement frequently view screening results, and the ability to quickly grasp results without complex operations proved highly attractive.
- Comprehensive coverage. With import and export regulatory information in 220+ countries and regions monitored by 200+ specialized staff 365 days a year, the system responds to the latest regulations and changes, thereby minimizing business risks for customers.
- Scalable architecture. The ability for all stakeholders to have accounts without additional fees significantly enhances operational efficiency. This feature is particularly beneficial as foreign personnel conduct screenings at overseas locations.
- Brand recognition. The high brand recognition of Thomson Reuters provides significant advantages during customer meetings, with clients expressing reassurance when learning about the screening system being used.
Enhancing compliance with ONESOURCE DPS
By automating the previously manual screening process, JGC has minimized the risk of oversight and missed confirmations. This automation allows personnel who were previously engaged in manual screening to focus on more critical strategic tasks, like establishing a framework that optimizes human resources to better identify and mitigate significant management risks. By implementing high-precision automated screening, the team can save time and dedicate efforts to new risk-based initiatives.
“By leveraging Thomson Reuters system for high-precision automated screening, we aim to utilize the time saved through automation to implement new initiatives based on a risk-based approach. This will help us further strengthen our compliance foundation and enhance our overall compliance efforts.” — Takao Sasayama Manager Governance Headquarters Legal and Governance Unit Trade Compliance Team
Additionally, the export control team aims to establish a system that can respond quickly and accurately to any inquiries or requests, protect the group and stakeholders from compliance violation risks, and contribute to sustainable management.
“Given Thomson Reuters established track record in the global market and their accumulated expertise and knowledge in this field, we look forward to their support as a partner in strengthening our trade compliance. We expect not only the system but also additional support to enhance our compliance efforts.” — Tetsu Kurata Executive Officer General Council JGC Holdings Corporation
At a glance
Industry
Engineering, Procurement, and Construction (EPC)
HQ region
Yokohama, Japan
Solutions
ONESOURCE Denied Party Screening
Year founded
1928
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