Due Diligence

Know Your Customer or KYC is a critical process used by organisations to verify the identity of their clients. Our KYC service can help you comply with these regulations by providing accurate and up-to-date information on your clients. We can verify identities and assess creditworthiness to ensure compliance with regulatory requirements.

Customer Identification: The first step in the KYC process involves gathering key identification information about the customer. This usually includes basic details such as name, address, date of birth, and contact information.

Customer Verification: Once the identification information has been collected, the next step is to verify this data. Verification serves to confirm that the customer is who they claim to be.

Risk Assessment: Following verification, a risk assessment is conducted. This is a crucial stage in the KYC process, as it involves assessing the potential risk that the customer may pose in terms of engaging in illegal activities such as money laundering or terrorist financing.

Ongoing Monitoring: The final stage in the KYC process involves ongoing monitoring of the customer’s transactions. This allows financial institutions to identify any unusual or suspicious activity, which might indicate potential illicit actions.

Politically Exposed Persons (PEPs) are essential for identifying individuals who may pose a higher risk due to their political exposure. Our PEP service can help you uncover and minimise these risks by conducting thorough checks on individuals and their associated entities. We can also provide ongoing monitoring to ensure compliance with regulatory requirements.

Reputation and Business Relationships: Being associated with a PEP can affect a company’s reputation. Other businesses and financial institutions might be cautious about engaging in transactions or partnerships with a company dealing with PEPs due to the perceived higher risk.

Regulatory Compliance: Companies dealing with PEPs must comply with strict regulations and guidelines set forth by regulatory authorities. Failing to adhere to these regulations can result in severe penalties, fines, and legal consequences for the company.

Financial Risk: There’s a potential financial risk associated with dealing with PEPs. If the PEP is found to be involved in illicit activities or if their funds are frozen due to sanctions, the company might suffer financial losses.

Increased Scrutiny: Companies dealing with PEPs may attract increased scrutiny from regulatory bodies. Authorities might closely monitor their financial activities and transactions to ensure compliance with regulations, leading to additional administrative burdens.

Operational Challenges: Implementing the necessary compliance measures can be operationally challenging, costly and may require investment in specialised staff, technology, and training to ensure they meet regulatory requirements.

Risk profiling is essential for managing risks effectively and understanding your risk appetite. Our risk profiling service can help you identify and assess the risks associated with your business operations to develop effective risk management strategies. Our experienced team can analyse data, identify potential risks, and provide recommendations on risk management strategies and controls.

Identifying Risks: Risk profiling helps businesses identify various types of risks, such as financial, legal, operational, and reputational risks. By understanding these risks, a company can take proactive measures to mitigate them effectively.

Compliance with Regulations: Businesses operate in a complex regulatory environment. Proper due diligence ensures that a company complies with relevant laws and regulations, avoiding legal issues, fines, and reputational damage associated with non-compliance.

Enhancing Decision-Making: Thorough due diligence provides valuable insights into potential partners, clients, and investments. This information empowers businesses to make informed decisions, reducing the likelihood of entering into high-risk partnerships or ventures.

Protecting Reputational Capital: A damaged reputation can be detrimental to a business. By conducting due diligence on partners, suppliers, and clients, a company can avoid associations with entities involved in illegal or unethical activities, preserving its reputation in the market.

Preventing Financial Losses: Proper risk profiling and due diligence help identify financial red flags, such as a partner’s unstable financial situation or outstanding legal obligations. By avoiding financially risky engagements, a business can prevent substantial monetary losses.

Building Trust: Demonstrating a commitment to due diligence and risk management builds trust among stakeholders, including customers, investors, and business partners. Trust is the foundation of successful and enduring business relationships.

Mitigating Operational Disruptions: Identifying potential risks before entering into agreements can prevent operational disruptions. For example, conducting due diligence on suppliers helps ensure a stable supply chain, preventing interruptions in production or service delivery.

Effective and robust citizenship and residency programmes depend on comprehensive and accurate evaluation processes. A due diligence practice that provides effective risk management enables decision making that is informed, accurate and safe.

FACT’s Due Diligence team is proficient in over 40 languages with a worldwide presence backed by specialised country knowledge. We are entrusted by governments to uphold the standards and integrity of their programmes.

We achieve these standards by leveraging 40 years of expertise, delivering bespoke due diligence services that are innovative and problem solving in their approach and outcomes.

Personal
Verify and confirm all aspects of an applicant’s identity and personal life

Business
Assess the validity and integrity of an applicant’s business activities

Wealth Analysis
Analysis on an individual’s financial assets and sources of income and wealth

Criminal Record
Clear profiling on criminal activity and convictions

Security Concerns
Provide insights into any political exposure and security risks that an individual may pose

Interview
In person factfinding and profiling through direct communication with an applicant

View our brochure HERE

Third-party due diligence is an integral part of risk management that ensures the protection of your organisation’s reputation, assets, and sensitive information. It involves a thorough assessment of external parties, such as suppliers and vendors, to identify potential risks and mitigate them effectively.

• Onboarding New Vendors/Partners: Before entering into a contract with a new third party, it’s vital to conduct a thorough assessment of their financial stability, legal compliance, ethical conduct, and ESG factors.
• Annual Review: Regular reviews of existing vendors are crucial to ensure they remain compliant and continue to meet your company’s standards.
• Significant Changes: If there’s a significant change in a vendor’s business – such as a merger, acquisition, or notable growth – it’s time for an updated due diligence review.
• Regulatory Changes: Changes in the regulatory environment may necessitate additional checks to ensure your business and its partners are in compliance.
• Risk-based Approach: Depending on the inherent risk associated with the third party, more frequent and detailed checks might be required.