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WE ARE EOG,

INTERNAL CONTROLS

RISK DISCLAIMER

Trading cryptocurrency can be very risky and there is a possibility of loosing your entire investment.

RISK DISCLAIMER. There is a significant amount of risk involved with buying and selling, trading, or investing in Bitcoin or any other cryptocurrency. It is important to understand that due to large market swings in Bitcoin price, buyers and sellers can suffer financial losses up to their entire investment in crypto assets.

Bitcoin and other cryptocurrencies are not regulated as financial securities and therefore lack consumer protection of regulatory bodies such as the Securities Exchange Commission (SEC). Waves of crypto tokens flooded the markets during 2017-2019.

Initial Coin Offerings (ICOs) eventually proved to have no value, with investors losing their capital shortly after buying in the ICO. Although still widely used, Bitcoin Exchanges time after time proved to be unreliable when it comes to preventing internal fraud and external security breaches. There is always a risk of your capital and private information being stolen by malicious external breaches. Buying, selling, trading, and investing into cryptocurrency should not be done at the detriment of not being able to pay your bills, or by borrowing money to invest in Bitcoin. Be smart with your decisions to buy and sell Bitcoin or any other cryptocurrency! Refer to the EOG Terms of Use.

INTERNAL CONTROLS FRAMEWORK

EOG is leading the cryptocurrency industry in areas of Risk Management, Governance, and Internal Controls.

At Executive OTC Group, we are an industry-leading, best in class, lean and agile company with the skills and expertise of an enterprise corporation. We are still learning, and are on the journey to perfect our processes, methods, and approach, continuously reassessing our risks and internal controls. Although not required by the regulatory bodies in the US or Canada, EOG has adopted the COSO internal controls framework as the highest standard in governance and internal controls oversight.

COSO FRAMEWORK

COSO stands for the Committee of Sponsoring Organizations of the Treadway Commission and is the generally accepted framework for internal control. It is also widely recognized as the definitive standard against which organizations measure the effectiveness of their systems of internal controls. By applying the COSO model to Executive OTC Group (EOG) processes (where applicable) at the appropriate level, we can demonstrate how our internal controls are established, implemented, and reviewed each year for effectiveness as part of continual improvement. Let’s break it down.

Trusted, Transparent, and Secure. EOG’s vision and primary business objective is to be the leading online marketplace for cryptocurrency in North America. In an effective internal control system as described by COSO, five components are working to support the achievement of an organization’s mission, strategies, and business objectives.

CONTROL ENVIRONMENT

Control Environment. An organization’s control environment starts with its tone at the top, including integrity, ethical values, governance, and accountability of the executive team.

There is a saying, ‘a fish always rots from the head.’ If an organization’s control environment is inadequate, at best, it is unlikely that this organization will achieve its business objectives. At worst, there may be a fraudulent scenario, a systemic bypass of internal controls at the highest levels of the organization. A strong, ethical tone at the top, combined with an appropriate governance model, is at the foundation of developing a robust internal control environment.

RISK ASSESSMENT

Organizations have to establish a process to identify, assess, and document key risks that could prevent it from achieving its primary business objectives. Risk is defined and evaluated as a consequence multiplied by likelihood, with risk assessment being a continuous process.

CONTROL ACTIVITIES

Key controls have to be identified and implemented to mitigate risks identified through the risk assessment process. Examples of controls are policies and procedures, application and network controls, cyber controls, business continuity, and data storage.

INFORMATION AND COMMUNICATION

This refers to the organization’s process for maintaining quality information, able to effectively communicate internally and externally.

MONITORING

Organizations are required to have a process for ongoing monitoring of effectiveness, assessments, audits, evaluations, as well as reporting any deficiencies.

EOG INTERNAL CONTROLS

We take Internal Controls seriously to protect our clients, investors, and stakeholders.

RISK ASSESSMENT

As part of COSO activities, EOG’s risk assessment identifies two key (inherent) risks we have to mitigate, manage, and control to achieve our business objectives.

Risk of false identity user bypassing our internal controls during the upfront KYC process.

Risk of counterparty non-performance resulting in the theft of cryptocurrency or financial consideration during the settlement process.

RISK MITIGATION: ONBOARDING

To mitigate both risks to an acceptable level (residual risk), we have developed multiple levels of internal controls applicable to all new and current EOG members. Reducing the risk of onboarding a false identity user, all new EOG members complete our standard Know Your Client (KYC) questionnaire and provide a copy of a government-issued photo ID. In addition, we may require a Skype video interview and for new members to provide followup information requested by the EOG compliance team. Corporations signing up with EOG have to assign a listed Director of the Corporation to their EOG account, who will then complete the KYC onboarding.

RISK MITIGATION: SETTLEMENT

To ensure contract performance of the counterparties where bank wire transfers are adequately traced by the sending and receiving bank accounts, cryptocurrency transfers require additional controls to validate and obtain transaction confirmation. Settlement Agreement requires all cryptocurrency transfers, where possible, to use Ledger hardware wallets to transfer cryptocurrency digitally, using wallet to wallet transfer function. Additional controls during settlement may require sending a small amount of cryptocurrency first, confirming the receipt, then completing the transfer in multiple tranches as specified in the agreement. As per Settlement Agreement, bank wire transfers may also require to be sent in batches or installments to match the timing of cryptocurrency transfers.

ADDITIONAL CONTROLS

For larger transactions EOG may recommend, or both parties may choose to include, additional controls and covenants as part of the settlement process. These controls can include, for example, additional Know Your Client (KYC) disclosures, use of specific types of digital wallets, use of lawyer intermediaries, or require personal guarantees. A notarized identity verification check can also be requested from both parties as part of settlement.
The cost of increased internal controls in the form of additional legal fees or out of pocket expenses is the sole responsibility of the counterparties. EOG owns the process of facilitating the overall settlement process. We provide consulting services to the counterparties on the basic framework of the agreement to ensure a smooth settlement. Ownership and execution of the Settlement Agreement always reside with the counterparties, not with EOG. Refer to the Settlement page and EOG Terms of Use.
We take a tough stance on internal controls for one main reason – to protect you, our clients, and the integrity of the EOG membership. If you have any questions about EOG internal controls, please reach out to us directly, send us an email or a Facebook message.

TALK TO US

We want to hear from you!

Executive OTC Group is located in Calgary, with a global team of professionals working towards the EOG vision. Ask us a question. The better the question, the better the answer, the better the world works, and EOG. We are located at: Executive OTC Group Inc., 714-1121 6 Ave SW, Calgary, Alberta, T2P 5J4. We use Telegram App as the preferred method for all phone calls over WIFI. Our phone number is 1-780-394-3180 send us a text via Telegram. Anytime, send us an email: [email protected]

Grow together with EOG. If you share our passion and vision for cryptocurrency, if you believe in us and want to fuel our growth, if you personally like to share and invest in our success, we invite you to generously donate cryptocurrency and fiat funds to EOG. We thank you for your donations!

EOG Bitcoin address: 32osTa8gYtZKxWn1qzZunh5h7FG57zqZ9r

EOG Ethereum address: 0x786164CBCa7E3383b336678DEd50F980A6e37DB7

We are always active on Social Media. Find us on Facebook, LinkedIn, and YouTube. Find us on Facebook at “Executive OTC Group”, and join our weekly training sessions for EOG negotiation software using our Sandbox OTC workspace environment. Send us a Facebook message right now.

SIGN UP FOR FREE

Sign Up for a FREE account with no commitments! Using your smartphone, enter your name, email, and a password to access our EOG Sandbox OTC workspace in the next 30 seconds. Our sandbox workspace provides a safe and risk free environment to try out our software while the EOG compliance team completes your KYC (know your client) onboarding. EOG applications are MOBILE-FIRST, we do not optimize for tablet or desktop.

We support USD/CAD/GBP/EUR fiat currency, all cryptocurrencies, fiat to crypto and crypto to crypto off-exchange contracts, with NO MINIMUMS and NO UPPER LIMITS. Visit the EOG negotiation software web application directly at https://www.eogotc.app and create your FREE account.