Compliance risks management using Globas: AML/CFT, anti-corruption
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Compliance means complying with the laws, regulations and rules of the country in which the company carries out its business.
Compliance procedures are one of the most important conditions for successful business.
Non-compliance could lead not only to certain risks, but also to fines and criminal liability.
Let us examine those risks that entail the most serious consequences in the Russian Federation, namely: corruption and the promotion of laundering of proceeds from crime.
For participation in fraudulent schemes for money laundering and bribery, large fines or restriction of freedom for a period of 2 to 8 years are provided.
In order not to become a defendant in criminal cases, a participant in arbitration processes and to avoid various reputational losses, it is necessary to check counterparties for compliance risks.

Main difficulties

The main difficulties that one can face when identifying compliance risks are:
  • lack of a single data source;
  • lack of automatization;
  • lack of data in the open sources.
For example, while assessing corruption risks when interacting with a company, it is necessary to identify publicly exposed persons in its structure. Such persons may take advantage of their position and ability to commit acts aimed at money laundering. Many high-profile cases related to corruption show that public officials (including former ones), endowed with administrative and managerial functions, own assets that are not comparable to their official or legal income. There is no register of publicly exposed persons in the open sources, which complicates the search for information and its verification.
One of the stages of identifying risks associated with money laundering is risk assessment by type of activity of the counterparty. However, there are no lists of activities subject to additional control. To obtain information on the degree of risk, it is necessary to study the decisions of the Central Bank, determine the appropriate OKVED code for the risky type of activity, and only than one can carry out an assessment.

Globas possibilites

Information and Analytical system Globas will assist in finding solutions to mentioned problems. The functionality of Globas allows for an in-depth check of the counterparty for compliance risks, and additional tools provide broad analytics for the organizations under research.
The Reports section allows to customize unlimited number of the user's verification scripts to further automate the process. You set the verification criteria and measures, and Globas automatically checks the presence of risks in the company, each time the report is opened!
Compliance check is available for every Globas user in the form of a formalized report. With its help, publicly exposed persons, high-risk activities according to the Central Bank of the Russian Federation, being under sanctions are identified, and automated verification of related persons for compliance risks is carried out.
Your risks are under control with Globas!
Checking foreign partners in Globas
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In today's business, the verification of counterparties is an integral component of safe cooperation. It plays a key role in ensuring risk minimization and protecting the interests of the company. It is especially important to check counterparties in situations where new business cooperations are being considered abroad, international transactions are planned, or entry into new markets with the construction of alternative supply chains.
Unscrupulous counterparties can pose a serious threat to business and entail financial losses and reputational damage. Preliminary verification helps to avoid undesirable consequences and reduce the risks of cooperation with unreliable partners.

New markets and partners

The current geopolitical situation and sanctions pressure from the United States, the European Union, the United Kingdom and their political allies against Russia have had a significant impact on business in the country. Companies have faced restrictions not only at the individual level, but also in entire sectors of the economy. This forced Russian business to rethink its foreign economic strategy, rebuild supply chains and actively develop parallel import mechanisms.
Many Russian companies are actively developing their ties with new markets, such as China, India and the UAE. These countries have become attractive partners, offering new opportunities for cooperation and business expansion.
In addition, Russian business is actively strengthening its ties with the markets of the CIS countries, such as Belarus, Kazakhstan, Kyrgyzstan, etc. These countries play an important role in partnership with Russian companies, and strengthening business relations with them is an integral part of establishing strong cross-border trade ties.
The conclusion of an international agreement opens up not only the prospects of obtaining profitable deals, but also involves a number of threats and risks:
  • increased attention of tax, customs and regulatory authorities;
  • possible delays and violations of the terms of delivery of goods;
  • difficulties in bringing an unreliable partner to responsibility for non-fulfillment of obligations;
  • a more costly arbitration process, especially in the case of a dispute in a foreign court;
  • differences in legislation if the law of another country was chosen;
  • differences in business customs and practices;
  • additional risks associated with the application of sanctions.
Sanctions undoubtedly create challenges and restrictions for Russian business, but at the same time, they stimulate it to innovate, diversify and search for new opportunities. Business in Russia is actively adapting to the new reality and striving for sustainability, developing links with diverse markets around the world. However, it should be borne in mind that international cooperation, from the point of view of verifying reliability and compliance procedures, poses even greater risks than local cooperation. Therefore, the verification of foreign partners is an integral and extremely important stage in the process of building relationships for future cooperation.

Features of checking foreign partners

When checking foreign partners, the same basic principles of compliance are applied as when checking Russian companies. An important aspect is access to information about the company. In a number of countries, business information is publicly available and can be obtained from government registries or commercial databases. However, in some countries, access to this information may be restricted or requires certain procedures. In addition, when checking foreign counterparties, attention should be paid to the peculiarities of international law and possible sanctions restrictions.
When checking foreign partners, it is necessary to pay attention to the following aspects:
  • verify the actual existence of the counterparty, as well as check its legal status and official registration in the relevant foreign registry;
  • check executives, shareholders and officials with a sign right;
  • conduct a study on the number of employees. This information will help to assess the size of the company and its resources, as well as confirm the possibility of fulfilling obligations under the proposed transactions;
  • to study information about the financial condition. This will allow us to assess financial stability and the ability to fulfill obligations, as well as identify potential risks;
  • check for fines and participation in legal proceedings;
  • to analyze judicial practice and other mechanisms for resolving disputes that may arise in the process of cooperation. This will help to anticipate possible risks and identify effective dispute resolution strategies;
  • check the company and its associated persons for entry into the sanctions and negative lists.
The main aspects described above are important components of checking the reliability of foreign partners. They help to minimize financial risks and create a basis for successful cooperation. However, it is worth noting that conducting such a check by yourself may present certain difficulties and require specialized knowledge.
Credinform and the Globas Information and Analytical System will help you solve these problems.
In Globas, you can get online information about companies from Belarus, Kazakhstan, Kyrgyzstan, Latvia, Moldova, Tajikistan, as well as get online report for 450 million companies from Europe, America, Africa and the Asia-Pacific region. The online report will include financial statements, archival information, shareholders and beneficiaries.
You can also order an offline report as part of a thorough check of a foreign partner. The offline report will be compiled by a team of professional experts with extensive experience and specializing in this field. You will receive comprehensive information, including registration data, financial statements, ownership structure, risk assessment, as well as verification of links and affiliations with Russian companies.


Credit reports for foreign companies

Thanks to a wide network of partners, Credinform provides information about legal entities and entrepreneurs around the world on all continents: from multinational corporations to offshore companies and individual entrepreneurs. To verify the solvency of the company, to identify the owners or to check the fact of registration in an offshore zone – our experts will provide comprehensive information and a competent resume.