Due diligence compliance in 2018

16 January 2018
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When going into business with a new partner and/or client, it’s important that you take the necessary steps involved in confirming that you know who your customer is. In today’s global marketplace, we are increasingly working with complex and overseas entities. Bearing this in mind, how do you really know who you are dealing with? International transactions increase our exposure to risk and warrant enhanced due diligence. So, what can you do to get started? Here are our top 3 ‘must do’s’ to ensure you are performing your due diligence.
  1. Verification of Identity

Verification of Identity (VOI) is an identification process, enabling businesses to ensure that they are dealing with the correct individual. Identity crime is happening in Australia today. In fact, according to the Australian Federal Police, it is one of the most common crimes affecting the Australian community, costing upwards of $1.6 billion dollars annually. Whilst many organisations have fraud detection processes and systems in place, experienced fraudsters can still exploit the information that is shared between businesses to commit fraud. With multiple methods of verifying an individual’s identity available (including secure VOI apps), conducting a VOI has never been quicker or easier.
  1. International company search

Conducting an International Company Search allows users to evaluate risk globally. Helping you to really know who you’re dealing with, conducting an International Company Search will give you the following information:
  • Company, Director and Property details including relationships (past and present)
  • Shareholding and beneficial ownership
  • Corporate credit score
  • Sanctions, Politically Exposed Persons (PEP) and international watch lists.
Knowing who your clients are can be the key to successfully running your business, therefore making the on-going customer due diligence critical in weeding out suspicious behaviour to decrease business risk.
  1. AML/CTF Checks

With money laundering and terrorism financing becoming more widespread worldwide, the necessity of conducting Anti-Money Laundering (AML) due diligence checks are very important for any business. Whilst the current AML/CTF Act covers the financial sector, gambling sector and bullion dealers, there are talks of an announcement date from the Australian Government with regards to an implementation date for Tranche 2 means that responsibilities under the current AML/CTF Act will extend to other industries including Real Estate, Accounting and Legal. Where to from here? Despite responsibilities not being compulsory for all industries, practising your due diligence gives you a competitive advantage and conveys the message to your staff and clients that you manage your risk and take the safety of your business and clients seriously – you don’t let just anyone walk through your doors. Interested in how InfoTrack can help you complete your due diligence? Book a demo today!

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About the author

Lee Bailie

Lee joined InfoTrack in 2017 with a background in the professional services industry and information technology, spanning over 15 years. As the General Manager of Product and Innovation, Lee is responsible for determining customer needs through direct contact with our clients, market research, product consideration, specifications and industry requirements. Lee works closely with InfoTrack’s development team and clients in order to deliver innovative solutions that are aligned to our customer’s needs. He maintains a constant line of communication with InfoTrack’s client base to ensure that his team are developing products that truly improve the productivity and efficiency of the clients they serve.