In today’s regulatory environment, due diligence in the form of comprehensive screening of clients, third parties, and transactions is essential to managing business risk and crucial to demonstrating that the risk is being managed. It should be clear that businesses need to adopt a policy and practice of re-screening in order to protect their business, demonstrate good corporate governance, and to satisfy the anti-financial crime expectations of their regulator, law enforcement, customers, and other interested and influential parties. It is important that all senior management understand that screening and re-screening ensures that your business does not take the wrong sales opportunities that lead to short-term income but long-term loss. Reasons to screen: 1. Change of a government, by election or by force; 2. National or international sanctions; 3. Economic crises; 4. Criminal investigations or convictions; 5. Media focus/public concern; 6. Administrative changes to clients’/suppliers’ details; 7. Other key changes relevant to your business. Once you know your risks and vulnerabilities it’s advisable to have a comprehensive and updated database of client details and the ability to screen and re-screen using a reliable business intelligence provider.
