Meet compliance requirements
It is related to two macro-areas:
A – Know you customer and Know your supplier (KYC and KYS) processes. In this cases is required by law to verify ownership and shareholding of a company.
It means understand corporate structure. Doing business with a partner with an unknown or unclear configuration means exposing yourself to various risks.
The first thing you need to know is who really owns a company. Being able to go back to the beneficial owner and/or the various shareholders allows you to have a clear picture of the company’s organization and to know exactly whom you are dealing with.
Using the , you can easily distinguish the actual beneficial owner, individuate the shareholders and have a graphical representation of the company’s structure and roles hierarchy.
B- Because of the increasing of the risks connected to money laundering, fraud, foreign corruption, terrorism or criminal activities in the international market, governments have set requirements that companies must meet to comply with pertinent regulations and avoid sanctions.
Therefore, currently, being able to check business partners’ reputation is not only a necessary precaution to avoid dangers and damages, but also part of due diligence processes.
Doing a compliance check, means verify the presence of the partner in various kind of lists connected to crimes or illicit activities. To do this is necessary examine databases, which aggregate information from the most important sanction lists (OFAC, EU, UN, FBI, Bureau of industry and security), data published by official government agencies and adverse media.
The first necessary check regards implication in fraud, money laundering and other financial crimes.
It is equally important being sure that the partner is not related to other kind of criminal activities like individuals, groups, and entities, such as terrorists and narcotics traffickers.
Another aspect you need to assess is if the partner can be listed between the PEP (politically exposed personas). In some cases, not only joining criminal organizations or having legal precedents, but also the political career of a partner with a prominent government or an international function can influence the business relationship in many ways.
All these checks can be done using realized through the sophisticated data analytics platform of Lexis Nexis that allows identifying patterns of subjects involved with entities associated with financial crime risks in all countries.
If you need to do a specific assessment on a business partner (company or person), you can use the for a deeper, global check, concerning also the corporate structure details and other financial information as in Credit Report, the most proper tool is the