Monitoring Organisations

Monitoring organisations' role is to maintain and regularly evaluate due diligence systems, which will be available to operators to use to show and ensure that due diligence, is correctly applied.

The use of a Monitoring Organisation is an optional and operators can choose to implement their own due diligence system.

Monitoring Organisations shall be legally established within the EU and will be subject to checks, they are yet to be established in the UK. 

1. A monitoring organisation shall:

(a) maintain and regularly evaluate a due diligence system and grant operators the right to use it;

(b) verify the proper use of its due diligence system by such operators;

(c) take appropriate action in the event of failure by an operator to properly use its due diligence system, including notification of competent authorities in the event of significant or repeated failure by the operator.

2. An organisation may apply for recognition as a monitoring organisation if it complies with the following requirements:

(a) it has legal personality and is legally established within the Union;

(b) it has appropriate expertise and the capacity to exercise the functions referred to in paragraph 1; and

(c) it ensures the absence of any conflict of interest in carrying out its functions.

3. The Commission, after consulting the Member State(s) concerned, shall recognise as a monitoring organisation an applicant that fulfils the requirements.

The decision to grant recognition to a monitoring organisation shall be communicated by the Commission to the competent authorities of all the Member States.

4. Monitoring organisations will be checked by the competent authorities at regular intervals to verify that the monitoring organisations continue to fulfil its functions and comply with the requirements. Checks may also be carried out when the competent authority of the Member State is in possession of relevant information, including substantiated concerns from third parties or when it has detected shortcomings in the implementation of the due diligence system established by a monitoring organisation.

5. If a competent authority determines that a monitoring organisation either no longer fulfils the functions or no longer complies with the requirements, it shall without delay inform the Commission.