International due diligence

23 July 2018 00:00

Decisions and consequences go hand-in-hand.

The financial and reputational repercussions of negative third-party exposure are burdens no company wants to bare but numerous international scandals have shown just how possible these scenarios are.

As complex as it may be to safeguard against third-party threats on a global scale, an effective vetting and monitoring strategy will go a long way toward protecting your business, says Rudi Kruger, General Manager of LexisNexis Data Services.

“Companies are subject to a growing number of regulations due to the globalisation of business, which means compliance in each location needs thorough understanding,” said Kruger. “Once the compliance requirements are established, true due diligence begins.”

Information collection
It’s vital to verify a corporate entity and find out more about its business operation and management structure. Gather information by issuing a comprehensive questionnaire that will draw information on company ownership, including beneficial ownership, governmental relationship, company background, including registration information. Add questions to test their knowledge on anti-corruption and what compliance measures they have in place.

The information gathered from the questionnaire should be verified during the vetting phase. Once preliminary vetting has taken place, prospective third parties should be subjected to a watch list screening process. Prospective third parties should be checked against global sanctions lists, law enforcement lists of known criminal entities and regulator-published lists of disqualified companies.

Risk assessment
Once preliminary information has been collected and watch list screening has taken place, perform a risk assessment by sifting through internal company policy, conducting checks on negative news and investigating the company’s litigation history to identify any wrong-doings and red flags.

Use help at hand
Online research tools are designed to enhance your due diligence efforts. One such tool is Lexis® Diligence, a risk management solution from LexisNexis Data Services. Lexis® Diligence is a comprehensive database of more than 40 years of global archived news and data, designed to help a company perform the necessary due diligence in the areas of risk, compliance and fraud. This makes it a valuable tool for meeting anti-bribery, corruption and anti-money laundering requirements, such as those set out in the UK Bribery Act 2010. Lexis Diligence also enables compliance officers to review data from the UK, EU, US and selected Asian jurisdictions.

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About Rudi Kruger

Rudi Kruger is the General Manager of LexisNexis Data Services. He is responsible for African and International risk solutions. He has 11 years banking experience with strong focus on trade services, risk and compliance. He successfully completed various courses within the banking industry, as well as IOB Certificate in banking and completed a MAP program at WBS in 2014. Rudi is responsible for the execution of new business development, strategy and sustainable growth, by introducing new products offering and enhancements to the Sub Saharan African market.

About LexisNexis Legal & Professional

LexisNexis Legal & Professional is a leading global provider of legal, regulatory and business information and analytics that help customers increase productivity, improve decision-making and outcomes, and advance the rule of law around the world. As a digital pioneer, the company was the first to bring legal and business information online with its Lexis and Nexis services. LexisNexis Legal & Professional, which serves customers in more than 130 countries with 10,000 employees worldwide, is part of RELX Group, a global provider of information and analytics for professional and business customers across industries.

About LexisNexis Data Services

A division of LexisNexis South Africa, LexisNexis Data Services assists corporate and government entities to uncover the information they require to get a complete picture of individuals, businesses and assets.  Industry-leading solutions such asLexis ProcureCheck, Lexis Diligence, Lexis RefCheck and LexisWinDeed make it easier for organisations to carry out background screening, access public records and other key data sources to conduct the necessary due diligence required to protect their business and comply with local and global legislation. With the most comprehensive collection of data sources in South Africa, LexisNexis Data Services quickly and efficiently delivers specific, in-depth information to address any industry-specific need.

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