How crucial is nowadays the role of Risk and Compliance Officers?
We have recently noticed the significant changes with regards to the sanctioned entities and jurisdictions announced from the President of the United States of America, the regime changes in Iran, restrictions or even exclusions of collaborations with Politically Exposed Persons, and the list of such restrictions is getting longer day by day. Overall, is there any definition for a “safe” co-operation which companies can follow to protect themselves? Is there any available list of “blacklisted” entities (being either legal or physical) with whom any provision or receipt of services and/or goods is prohibited? And the most important, is there any database in which all this information is available, to make it easier for an individual or a company to make decisions before any cooperation is concluded?
These are some of the numerous unanswered questions that are, however, of utmost importance to the protection and sustainability of any organization.
It is a fact that global sanction lists are continuously increased, affecting thus the rules for co-operation with some states that are now considered to be of high risk. It is worth noting that the term “states” in that case, is not restricted to nations or jurisdictions, but refers also to physical and legal entities, for various reasons.
It would be fair to say that the use of digital technology has greatly improved the research process in general and even more when referring to the procedure of getting information on all the aforementioned. In particular, research process has now become significantly efficient through the use of global news sites that are updated on real-time, as well as the ability of reviewing up-to-date announcements; fines and remarks; amongst others, from the regulatory authorities; ministerial offices; central banks; and so on.
Although the digital technology has been beneficial in many ways when it comes to the ability of retrieving any information through the global sources, there is however the opposite side which should also be taken into account so as to evaluate whether any information is considered free or biased. The right to freedom of opinion, enables everyone to express their own views, thus transforming the global network into a forum of public debate and multiple opinions. Consequently, even-though such search engines make the research process much easier and efficient, it is highly crucial whether all those opinions, articles, or announcements are reliable.
With the ever-increasing compliance requirements from the regulatory authorities with regards to the risk; compliance and monitoring procedures, either of the current or the prospective clientele of each organization, almost (if not) all legal entities are, by law, obliged to monitor their clients in order to combat money laundering and terrorism financing activities [see relevant European and International Directives].
This is also the point where access to systems or databases that only monitor reliable information is deemed necessary. So, the big question is: Are there any existing systems through which users can access informative material related to high-risk entities ONLY? The answer is, of course (and luckily), positive!
It is generally acceptable that the creation and constant monitoring of such systems is not an easy matter, since the sources and other sites that should be monitored are of massive volume. This is definitely the reason of why the availability of such tools is extremely limited.
One such system is the WorldCompliance tool provided by LexisNexis® Risk Solutions, member of RELX Group and a leader in risk management and data analysis.
LexisNexis WorldCompliance tool is one of the most comprehensive knowledge base of risk entities commercially available, with information about individuals, companies, as well as vessels, that were involved in Money Laundering, Terrorist Financing and other related offenses.
Via the WorldCompliance tool, users gain access to a comprehensive set of data sources, enabling them to quickly perform due diligence and background screening, against global:
- Sanction lists
- Enforcement lists
- Politically Exposed Persons (PEP) lists
- Adverse media
- Wanted individuals
- State Owned Entities (SOEs)
For the purpose of getting to know and/or monitor any physical or legal person, it would be necessary to investigate the subject entity against all the above categories.
Important to note that WorldCompliance tool monitors on a daily basis over 1.600 global lists and over 35.000 adverse media sources worldwide, thus making the investigation process much quicker and more efficient and on the same way assisting at a great level all compliance officers over their obligation to continuously monitor the clientele.
For more information about the WorldCompliance tool, or to request a FREE TRIAL ACCESS, please contact Infocredit Group, the exclusive strategic partner of LexisNexis® Risk Solutions.
Contact details:
Tel.: +357 22 398 000
Email: compliance@infocreditgroup.com
Maria Evangelou
Business Advisory Consultant – Infocredit Group
Chaussures Homme J.M. Weston