Business partner compliance screening is a complex and evolving issue. Irrespective of the industry or area of operation, it is essential you determine the risks of non-compliance in all your business relationships. Failing to do so could lead to detrimental effects on your business if any of the associates are engaged in legally or ethically questionable practices.
Both local and international regulatory and investigative authorities have intensified their scrutiny and taken strong action for effective enforcement of know-your-customer (KYC), anti-money-laundering (AML) and Countering the Financing of Terrorism (CFT) policies and procedures to combat corruption and criminal activities.
Remember, not only are the direct violators at risk but an organisation or individual can also be held liable for the illegal actions of its business partners. Therefore, every business must implement effective structures, controls and processes for screening its partners and third-party associates (suppliers, wholesalers, consultants or commercial representatives).
Negligence can result in huge financial losses
The impact of non-compliance can be catastrophic. Such negligence or oversight can result in huge financial losses from fines and penalties to termination of contracts, reputational damage as well as legal action and sanctions.
To mitigate the risks of non-compliance it is important to fulfil your due diligence obligations. So, what should be done?
Step 1 - Verify if you are dealing with an entity sanctioned by national or international organisations such as the United Nations or the US Office of Foreign Assets Control.
Step 2 - Ensure your partners are not associated with politically exposed persons.
Step 3 - Search for any negative news related to criminal or illegal activity that could negatively impact your business relationship.
Now that you have conducted your Due Diligence (DD) obligations, you have an audit trail to show to authorities in case of an investigation.
But are you sure you have uncovered everything? Have you spent too much time and resources? Why don't you get a specialised and trusted expert like Cedar Rose to take care of the research and provide you with a reliable and comprehensive report?
CR Comply offers automated compliance checks on companies and individuals to uncover sanctions, PEPs (Politically Exposed Persons), and adverse media within seconds, via web, API, or batch search.
It is the perfect tool to detect, assess and minimise potential risks and can help avoid associated reputational and financial losses. One of CR Comply’s biggest advantages over its competitors is that it is available both as a stand-alone product and as part of an affordable package with other services.
For more information on any of our products including CR Comply, give us a call today on +971
4 374 5758 or email firstname.lastname@example.org