Use this button to switch between dark and light mode.

Risk and Compliance

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...


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...


AML Fines are on the Rise. Here’s How to Avoid

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...


Seven Ways Companies Can Effectively Respond to the Global Spread of New Anti-Money Laundering Regulations

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...

Tags:

Why Understanding and Monitoring Sanction Lists is Crucial for Business Due Diligence

Sanctions are often hot topics of international news reports, especially as they relate to foreign governments and international relations. But, you may not realize that sanctions can be levied to any entity that violates regulations. Sanctions are also important to businesses, and working with those who have been sanctioned can have serious consequences. As such, monitoring and understanding sanction lists is a key...


Using Visualizations of Negative News to Monitor Your ESG Efforts

Organizations are facing more calls for Environmental, Social and Governance (ESG) accountability than possibly ever before. Investors want to know that the companies they own stock in are good stewards of the earth and responsible corporate citizens. Likewise, consumers want to know the brands they do business with share the same core principles as they do. And governments and regulatory bodies are now looking to usher...


Understanding Third Party Environmental Impacts is an Urgent Challenge--Effective Due Diligence Can Help

As environmental, social, and governance regulation is becoming a standard requirement--not only from government regulation but from shareholder representations, businesses need to think more about how they are incorporating it into their strategies. However, only 5% of the UK’s largest companies have published a ‘credible’ environmental plan that would comply with forthcoming regulations, according to a new report. This...


The US Foreign Corrupt Practices Act: What it Means for Your Business

The Federal Corruptions Policy Act was established to address and end corruption and bribery in US business dealings with foreign officials. The FCPA seeks to keep legitimate businesses from losing contracts to companies engaged in corruption and bribery. The act does not solely speak to first tier businesses—it further requires all businesses have a process of due diligence to assure corruption and bribery is not happening...


Sanctions Surveillance: 9 Crucial Steps to Help Prevent Costly Sanctions Breaches

With the ever-growing focus on ESG and increased compliance legislation across the globe, it has become even more important for business to keep up with regulation to avoid costly sanctions. Even if your business is not violating the law directly, you can be found liable for sanctions if your third-party partners are violating the law. That's why a rigorous and continuous due diligence process is so important. In...


New Wolfsberg Principles warn global banks of the risk factors that require Enhanced Due Diligence on a wide range of data

The Wolfsberg Principles are widely regarded as authoritative guidance for how financial institutions should respond to the rising risks of bribery and corruption. New guidance has recently been released for the first time in six years. We unpack its main recommendations of risk factors which should prompt banks to carry out enhanced due diligence, and explain how technology can help to improve and upgrade their compliance...


Key Trends in Risk and Compliance in 2023

We are already more than halfway through 2023, so if your business isn’t up to date on all the newest trends and shortcuts in the realm of risk mitigation and compliance, suffice it to say you’re falling behind. This year, there is an even greater push on ESG compliance , protection from rising technology like AI and Crypto, and the general need for due diligence to avoid working with sanctioned third parties. Here...


Is the Whole World Marching Toward Mandatory Supply Chain Due Diligence?

As the world has changed, so have requirements for managing business risk. Supply chains have grown more complex and less transparent. Negative news spreads like wildfire across myriad media channels. And governments—including the EU, UK and US—have upped regulatory pressures for companies to address adverse human rights and environmental impacts associated with doing business. Expanding on existing laws related to...


The ESG Risk Series: How Due Diligence Helps to Protect Companies’ Reputations Against Social Risks

Regulators increasingly require corporates and financial services firms to incorporate Environmental, Social and Governance (ESG) risks into their due diligence and reputational risk management processes. ESG also brings opportunity: asset managers and investment banks have enjoyed significant returns by moving assets into sustainable funds, while companies who are transparent about their ESG commitments have been profitable...


The ESG Risk Series: Why Governance Risks Should be High on the C-Suite’s Agenda

Regulators increasingly require corporates and financial services firms to incorporate Environmental, Social and Governance (ESG) risks into their due diligence and reputational risk management processes. ESG also brings opportunity: asset managers and investment banks have enjoyed significant returns by moving assets into sustainable funds, while companies who are transparent about their ESG commitments have been profitable...


Discover the four global trends driving increased money laundering risk in 2023 in our new White Paper

Identifying and mitigating money laundering risks is among the most important compliance tasks for any financial services company. Yet, in 2023, four trends are making this task harder than ever before, while ever-strengthening legislation across the world increases the cost of an AML failure. Our new White Paper looks at the main trends in relation to money laundering risk; summarises the key legislative developments...


Choose the Best Due Diligence Tool for Your Business

At the 2020 World Economic Forum, Kevin Hewitt, Chairman of the EMEA region of FTI Consulting, shared survey results of 2,200 executives from private and publicly traded companies across all G-20 countries. The topic? Risk and resilience. In what now feels like a moment of second sight, Hewitt commented , “It is not a matter of if a company will face an inflection point or crisis, but when it will happen—meaning the...


69% of global companies predict financial crime risk will rise in the next year, according to the annual Kroll survey of bribery and corruption risk

A new survey of global executives shows that companies expect the risk of financial crime and regulatory enforcement action to rise in the next year. Firms are also prioritizing technology as a means to improving their compliance and due diligence approach . We look at what firms can learn from this report, and how Nexis ® Solutions can help firms to leverage data and technology to transform their financial crime risk...


2020 FCPA Enforcement Digest

FCPA Fines Skyrocket to New Heights, Signalling Continued Pressure on Anti-Bribery Corruption Risk Management Programmes So far, 2020 has been a year of extraordinary events. The COVID-19 pandemic shut down has led to the greatest global economic disruption in nearly a century. In combination with growing social unrest, the economic crisis has increased the risk of bribery, corruption, and other illicit activities....


Warning for European financial institutions as major new report warns money laundering and terrorist financing risks are not properly assessed and managed

A new report from the European Banking Authority (EBA) warns that payments firms and banks in the EU often insufficiently identify and manage the risk of money laundering and terrorist financing, despite the heightened risk of both within the sector. This blog looks at the report’s findings and suggests takeaways for firms, including the need for a comprehensive due diligence process which uses authoritative data and...


Nexis Diligence+™︎: Taking Your Due Diligence to a Higher Level

When it comes to business, it’s important to have high standards—especially when evaluating risk and protecting your reputation. To do so requires a comprehensive due diligence process that’s powered by information that you can trust. And with so many other responsibilities to manage, it can be difficult to perform an appropriately thorough due diligence investigation on a short timeline. If you’re looking to bring...


Stop the Risk: Asking the Right Questions for Complete Due Diligence

With the rise of mandatory due diligence legislation, it is no longer sufficient for compliance officers to screen a third party for indicators of bribery and corruption alone. Effective due diligence in the modern business environment should also encompass Environmental, Social and Governance (ESG) factors like a company’s human rights record and environmental impact. More countries have adopted—or are considering...


Strengthening Consumer Loyalty Through Ethical Supply Chain Practices That Enforce Human Rights and Eliminate Child Labor

Consumer attitudes have shifted dramatically since the onset of the pandemic, bringing a striking increase in their desire for transparency in supply chain ethics. From the consumer level to the statutory level, there is a greater focus on ensuring these laws are enforced and embraced across the whole of the supply chain: from farm to fork. In 2021, a global study found that 78 percent of consumers prioritize buying...


Stark reminder of the costs of compliance failure as US regulator fines telecoms firm after alleged Deferred Prosecution Agreement breach

A multinational telecommunications company has pleaded guilty to breaching the anti-bribery provisions of the US Foreign Corrupt Practices Act and must pay a $206 million penalty. In this blog, we look at the judgement by the US Department of Justice, and highlight the legal, financial, reputational and strategic risks of a compliance failure. We also outline how Nexis® Solutions can help companies to improve their due...


Round up of recent major fines for alleged compliance failures – and how companies can mitigate this rising regulatory risk

Over the past few months, companies from a wide range of jurisdictions and industries had to pay hundreds of millions of dollars in fines for alleged failures of compliance and due diligence. In this blog, we dive deeper into some of these enforcement actions and draw out lessons companies can learn to mitigate the legal, financial, reputational and strategic risks of a regulatory breach. We also explain how Nexis Solutions...


The Global Impact of ESG Legislation

ESG screening , or environmental, social and governance screening, is becoming an increasingly important part of due diligence for companies around the world. Legislation mandating ESG due diligence is being introduced in many countries, and even where it is not yet required, consumers, investors, and employees are demanding ethical practices from companies. Improving ESG due diligence processes is essential for companies...