Compliance, Risk & Due Diligence
What the Kroll Report Means for Your Business and How it Manages Third Party Financial Crime Risk
This year’s Kroll Fraud and Financial Crime Report found companies are growing increasingly concerned that third parties are driving a higher risk of financial crime. We read through the report to pull out lessons for companies from this survey of 400 executives across 8 countries. By implementing these lessons–with help from LexisNexis–firms can improve their management of third party risk. “Third-party gatekeepers...
Six Things to Know About Emerging HRDD Regulations
Millions of companies around the world have been impacted by regulations which mandate them to carry out ESG and human rights due diligence (HRDD in the last few years–or they soon will be. These regulations bring new legal, financial, strategic and reputational risks for firms. However, navigating this regulatory landscape is further complicated by disparate requirements across jurisdictions and the nuanced interpretations...
What the Ukrainian War Has Meant for Third Party Risk Management
From Stricter Sanctions to Broken Supply Chains: What the Ukrainian War has Meant for Third Party Risk Management February 2024 will mark two years since the latest conflict in Ukraine began. As well as its tragic impact on so many lives, the war has also brought new third party risks which companies need manage–or face supply chain interruptions or even enforcement action by regulators. In this blog, we look at the...
If You Haven’t Addressed These 5 Third-Party Risks, You’re Behind the Curve
Third parties help companies to deliver their products and services, but they also expose them to regulatory, financial, strategic and reputational risks. In the latest blog in our third party risk series, we look further at five key third party risks facing your company. Then, we explain how companies can mitigate them by investing in the right data and technology to support an effective compliance operation. 1. Regulatory...
Financial Crime is on the Rise. Here’s How Your Company Can Stay a Step Ahead
Financial crimes such as bribery, corruption and money laundering are becoming more common and more complex. One of the most common reasons for a company becoming implicated in alleged financial crime is its exposure to the activities of its third parties and suppliers. In this blog, we look at the trends in financial crime that your firm should be aware of. We then suggest how companies can improve their third party...
Why We’re Paying Attention to Human Rights & ESG Regulations
Over the last five years, the dominant regulatory trend in global compliance has been the spread of legislation which mandates companies to carry out Human Rights and ESG Due Diligence (HRDD) on third parties and suppliers. This has significant implications for any company operating in a jurisdiction with HRDD regulations–or whose third parties and suppliers operate there. In the latest blog in our Third Party Risk Series...
Four Regulatory Enforcements Against Alleged Third Party Compliance Failures
Global companies have been fined hundreds of millions of dollars for alleged compliance breaches in the last year. Whether the allegations against them related to bribery and corruption or breaches of new human rights due diligence legislation, a recurring theme in many cases was the involvement of third parties. In the first blog in our Third-Party Risk series, we dive deeper into four of those cases and offer clear...
AML Fines are on the Rise. Here’s How to Avoid Them
Anti-money laundering fines are up by 50%. Here's how your company can avoid being next Avoiding a breach of Anti-Money Laundering (AML) regulations–and the fine that follows–should be a priority for any company in 2023. The financial costs of a compliance failure is increasing, with global fines against companies rising by 50% year-on-year. In the latest blog in our AML series, we look some recent global fines for...
Five AML Fines and Lessons
What Companies Can Learn From 5 Recent Fines by Global Regulators for Alleged Money Laundering Alleged breaches of Anti-Money Laundering regulations are leading to increasingly large fines against companies, as we have shown over the course of this AML Risk series . In this blog, we dive deeper into five recent enforcement actions by regulators around the world to find lessons all companies can learn to improve their...
How Companies Can Spot Money Laundering Before the Fine
Prevent and Detect: How Companies Can Spot Money Laundering Before the Fine Companies are receiving ever larger fines for allegedly breaching anti-money laundering regulations–in fact, the total fines issued globally in 2022 was 50% higher than in 2021. As well as the financial hit, compliance breaches inflict significant legal, reputational and strategic damage on companies. It is therefore critical that banks and...
Seven Ways Companies Can Effectively Respond to the Global Spread of New Anti-Money Laundering Regulations
In the last blog in our AML series , we outlined the major developments which are driving rapid regulatory changes across the world. Today, we are going a step further by suggesting seven ways companies should respond to these emerging regulatory risks. Implementing these best practices for compliance and due diligence will not only help companies to meet regulators’ expectations, but it should protect their business...
The Four Major Developments Every Business Should Know About Anti-Money Laundering Regulations
Anti-Money Laundering regulations have changed rapidly in recent years–from Switzerland to Singapore, from Brazil to Bahrain. Building on our whitepaper, ‘AML Compliance: A Global View’, we identify and summarise four major developments which are driving regulatory changes across the world. This blog summarises those changes in order to help companies to prepare for future regulatory interventions. 1. AML regulations...
Financial Crime is on the Rise. Here’s How to Stay a Step Ahead
Financial crimes such as bribery, corruption and money laundering are becoming more common and more complex. One of the most common reasons for a company becoming implicated in alleged financial crime is its exposure to the activities of its third parties and suppliers. In this blog, we look at the trends in financial crime that your firm should be aware of. We then suggest how companies can improve their third party...
Why We’re Paying Attention to Human Rights & ESG Regulations
Over the last five years, the dominant regulatory trend in global compliance has been the spread of legislation which mandates companies to carry out Human Rights and ESG Due Diligence (HRDD) on third parties and suppliers. This has significant implications for any company operating in a jurisdiction with HRDD regulations–or whose third parties and suppliers operate there. In the latest blog in our Third Party Risk Series...
Four regulatory enforcements against alleged third party compliance failures–and what your company can learn from each
Global companies have been fined hundreds of millions of dollars for alleged compliance breaches in the last year. Whether the allegations against them related to bribery and corruption or breaches of new human rights due diligence legislation, a recurring theme in many cases was the involvement of third parties. In the first blog in our Third-Party Risk series, we dive deeper into four of those cases and offer clear...
Navigating PEPs in the UK
In the complex landscape of UK compliance, understanding Politically Exposed Persons (PEPs) is crucial. PEPs are individuals who are or have been entrusted with prominent public functions, and due to their position and influence, they are potentially higher risks for involvement in money laundering or corrupt activities. This group includes not just elected officials and government employees but also their family members...
How to Perform KYC Checks: A Step-by-Step Guide
In today's rapidly evolving business landscape, the importance of Know Your Customer (KYC) checks cannot be overstated. KYC checks are a critical component of compliance strategies, designed to verify the identity of clients and assess potential risks of illegal intentions, particularly in financial transactions. These checks serve as the first line of defence against financial crimes such as money laundering , fraud...
Money Laundering with NFTs
Money laundering , in its simplest terms, refers to the act of making illegally-gained proceeds appear legal by disguising the origins of such funds. Traditionally, this process involved a series of transactions through banks or other financial institutions, often spanning multiple countries to add layers of complexity. However, as the digital economy has evolved, so too have the methods of money laundering. Enter Non...
Essential Steps in Conducting Due Diligence Checks
Every business transaction, whether it's a merger, an acquisition, or a simple investment, carries its share of risks. Identifying, understanding, and addressing these risks is fundamental to ensuring the security and success of the transaction. This critical process of assessment is known as due diligence. Conducting thorough due diligence checks has become an indispensable part of modern business practices, serving...
How to Implement a KYC Program in the UK
The concept of "Know Your Customer" or KYC , at its core, is a process used by businesses to verify the identity of their clients. It serves as a critical component in financial systems, ensuring that institutions are not inadvertently facilitating illegal activities such as money laundering, terrorist financing, or identity theft. In the UK, the importance of KYC checks is amplified by its integration within the nation...
Understanding Global KYC Requirements & Their Impact on the UK
In an increasingly interconnected global economy, understanding global KYC (Know Your Customer) equirements is imperative for businesses worldwide, and especially in the UK. The evolution of KYC regulations reflects a concerted effort worldwide to counteract illicit financial activities such as money laundering, terrorist financing, and fraud. The KYC process involves the verification of customers’ identities and assessment...
What Companies Can Learn From 5 Recent Fines by Global Regulators for Alleged Money Laundering
Alleged breaches of Anti-Money Laundering regulations are leading to increasingly large fines against companies, as we have shown over the course of this AML Risk series . In this blog, we dive deeper into five recent enforcement actions by regulators around the world to find lessons all companies can learn to improve their compliance and better manage money laundering risk. 1. Take a risk-based approach to due diligence...
Anti-money laundering fines are up by 50%. Here's how your company can avoid being next
Avoiding a breach of Anti-Money Laundering (AML) regulations–and the fine that follows–should be a priority for any company in 2023. The financial costs of a compliance failure is increasing, with global fines against companies rising by 50% year-on-year. In the latest blog in our AML series, we look some recent global fines for alleged money laundering failures. We then highlight four ways for firms can avoid a compliance...
Step-by-Step Guide to Politically Exposed Persons Checks
A Step-by-Step Guide to Conducting Politically Exposed Persons Checks Politically Exposed Persons (PEPs) refer to individuals who are or have been entrusted with a prominent public function, either domestically or internationally. Such persons can include high-ranking officials, politicians, and their immediate family members or close associates. In the ever-evolving landscape of business and finance, Politically...
All You Need to Know About Global AML Regulations
All You Need to Know About Global AML Regulations Across the globe, governments, financial institutions, and international regulatory bodies are diligently working to enforce stringent Anti-Money Laundering (AML) regulations. These measures are established to curb financial crimes, maintain economic stability, and ensure transparency in all types of financial transactions. The primary objective of AML regulations...