Description
Minimise your risk – know what you need to know A global business intelligence service
www.pkf-littlejohn.com
PKF Littlejohn LLP
Minimise your risk – know
what you need to know
A global business intelligence service
FORENSIC
& COUNTER FRAUD
SERVICES
Minimise your risk – know what you need to know
Since September 11, 2001, more
than 100 countries have tightened
their anti-money laundering
regulations, making the ?ght
against fraud, money laundering
and corruption central to any
new legislation. Governments,
using statutory powers, now
require organisations to put into
place rigorous risk management
procedures in order to identify
‘who their customers are’ and ‘the
intended nature of their business’.
This is known as Customer Due
Diligence (CDD).
CDD procedures involve:
• Identifying customers and verifying their identities based
on documents or information obtained from reliable and
independent sources
• Identifying bene?cial owners of organisations (bene?cial
owners are those individuals who ultimately own or control
the business)
• Obtaining information on the purpose and intended nature
of the business relationship
An organisation within the regulated sector must apply
CDD when they:
• Establish a business relationship
• Carry out an occasional transaction (one-off transaction
valued at €15,000 or more)
• Suspect money laundering or terrorist ?nancing
• Doubt the reliability or adequacy of documents or information
previously obtained for identi?cation.
Organisations can face both reputational damage and ?nancial
sanctions if they fail to comply with the legislation.
How can PKF Littlejohn help you?
Customer Identi?cation
One of the main challenges organisations may face relates to
customer identi?cation. Best practice requires organisations to
independently verify, using a reliable source, the identity of their
customer(s). They should not therefore rely solely upon information
provided by the customer. Today’s global business environment can
make independent veri?cation extremely dif?cult.
Our approach
• Client focused approach
We understand that our clients have differing needs
and may have speci?c requirements, therefore we offer
tailor-made reports to meet those needs.
• Speed of reporting
Our high quality reports are usually delivered within two
weeks rather than months, thus allowing our clients to
make informed decisions.
• Affordable prices
In today’s economic environment we understand that
organisations have to be cost ef?cient. Our business
structure enables us to offer tailor-made reports at highly
competitive prices.
When carrying out due diligence we access public record information
and, where possible, obtain data from the primary source. This could
be from the of?cial company registry or local courts. Details of all
the information contained in our reports are recorded or stored so, if
necessary, we can return to the source documents.
By accessing only public records you can be con?dent that the
turnaround times we quote will be met and that you will be able to rely
on the information obtained to support your decision making process.
Minimise your risk – know what you need to know
Descriptions of services
• Subject identi?cation
Public records and media are reviewed in order to identify the
subject. In terms of companies, local company registries are
checked (local to where the company is based) to validate the
company’s existence. In this process, no company records
are obtained; only the company’s existence is veri?ed. When
identifying individuals, local databases are used (e.g. company
and electoral registration databases, address databases,
online directories). It is possible from time to time that within
the scope of the report, the subject cannot be identi?ed or
personal information (such as date of birth, address and ID
numbers) cannot be found.
• Company records
Company records are retrieved from local company registries
(local to where the company is based) in order to obtain
information relating to Directors and shareholders (subject to
availability and ?ling).
• Directorship checks
A search is conducted for current directorships, previous
directorships and shareholdings in local registries. The
availability of information may vary in each country. For
example, some countries’ registries do not provide business
af?liation information for individuals, or only provide current
business association information.
In countries where limited or no information is available
relating to business positions, a third party may be used to
obtain this information.
• Global and local PEP & Sanction checks
Politically Exposed Persons (“PEP”s) are considered high
risk in today’s regulatory environment. Regulation requires
Enhanced Due Diligence (“EDD”) when conducting business
with PEPs, particularly when they become part of private
banking transactions. Heavy ?nes have been imposed on
?nancial institutions that have conducted business with PEPs
without following adequate Know Your Customer (“KYC”)
procedures and EDD processes.
Global PEP lists include pro?les of PEPs, as well as family
members and close associates. We obtain information from
the most important sanction lists around the world and group
them into one category called the Global Sanction List. The
Global Enforcement List (“GEL”) is comprised of information
received from regulatory and governmental authorities.
It includes the content of warnings and actions against
individuals and companies; listing narcotic traf?ckers, money
launderers, fraudsters, human traf?ckers and other criminals.
More than 800 enforcement lists are continuously monitored
to provide the most comprehensive protection to our clients.
• Published media and internet
Searches are undertaken in English and/or a local language
within the published media and using the internet. These
searches include:
1. Local (where the subject is located) – media searches
of the national newspapers and very often regional or
town papers; trade press and other published media.
2. A search of the internet within the desired location
using Google, Yahoo, Bing, and country speci?c search
engines (if available) and social media.
Local language media and internet searches are added for
countries where English is not the of?cial/main language (e.g.
Russia, China, Vietnam, Spain). Searches can be undertaken
for ‘negative only’ comments where the focus is on adverse
information regarding the subject in question; or full searches
where general business related information as well as adverse
information is retrieved regarding the subject.
• Country speci?c checks
Search of data sources in the scope jurisdiction of the subject
will include litigation, bankruptcy and regulatory sources.
Searches vary by country depending on the availability of the
information. Only adverse information would be retrieved and
reported to the client.
• Litigation searches
Only cases in which the subject is the defendant are reported
(unless a speci?c request is received). Case details are either
reported in brief format (information includes the parties involved,
case number, case date and the subject matter) or summarised
format where a summary of the case (if available) is provided.
• Financial checks
Financial checks include bankruptcy, insolvency and debt
related information (where available).
• Regulatory checks
The relevant industry regulatory bodies are searched. For
example, if the subject is active in the ?nancial industry the
subject’s name is checked against the local ?nancial regulator
for adverse (?nes, sanctions) as well as general information
(licensing information for providing ?nancial services). If the
subject is active in more industries, all relevant industry
regulatory bodies are checked for information.
• MRZ passport check
Veri?cation of machine readable passport details (MRZ code).
This compares the codes built in to the passport with the
identity details provided or found. A good quality photocopy
of the relevant ID page, showing the machine readable
algorithm, is required to conduct this check. This will help
verify that the passport you have seen is a valid passport.
PKF Littlejohn LLP, 1 Westferry Circus, Canary Wharf, London E14 4HD
Tel: +44 (0)20 7516 2200 Fax: +44 (0)20 7516 2400 www.pkf-littlejohn.com
PKF Littlejohn LLP, Chartered Accountants. A list of members’ names is available at the above address. PKF Littlejohn LLP is a limited liability partnership registered in England and Wales
No. 0C342572. Registered office as above. PKF Littlejohn LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility
or liability for the actions or inactions on the part of any other individual member firm or firms.
Get in touch
For more information please contact:
Martin Moore
t: +44 (0)20 7516 2320
e: [email protected]
Jim Gee
t: +44 (0)20 7516 2288
e: [email protected]
doc_442051990.pdf
Minimise your risk – know what you need to know A global business intelligence service
www.pkf-littlejohn.com
PKF Littlejohn LLP
Minimise your risk – know
what you need to know
A global business intelligence service
FORENSIC
& COUNTER FRAUD
SERVICES
Minimise your risk – know what you need to know
Since September 11, 2001, more
than 100 countries have tightened
their anti-money laundering
regulations, making the ?ght
against fraud, money laundering
and corruption central to any
new legislation. Governments,
using statutory powers, now
require organisations to put into
place rigorous risk management
procedures in order to identify
‘who their customers are’ and ‘the
intended nature of their business’.
This is known as Customer Due
Diligence (CDD).
CDD procedures involve:
• Identifying customers and verifying their identities based
on documents or information obtained from reliable and
independent sources
• Identifying bene?cial owners of organisations (bene?cial
owners are those individuals who ultimately own or control
the business)
• Obtaining information on the purpose and intended nature
of the business relationship
An organisation within the regulated sector must apply
CDD when they:
• Establish a business relationship
• Carry out an occasional transaction (one-off transaction
valued at €15,000 or more)
• Suspect money laundering or terrorist ?nancing
• Doubt the reliability or adequacy of documents or information
previously obtained for identi?cation.
Organisations can face both reputational damage and ?nancial
sanctions if they fail to comply with the legislation.
How can PKF Littlejohn help you?
Customer Identi?cation
One of the main challenges organisations may face relates to
customer identi?cation. Best practice requires organisations to
independently verify, using a reliable source, the identity of their
customer(s). They should not therefore rely solely upon information
provided by the customer. Today’s global business environment can
make independent veri?cation extremely dif?cult.
Our approach
• Client focused approach
We understand that our clients have differing needs
and may have speci?c requirements, therefore we offer
tailor-made reports to meet those needs.
• Speed of reporting
Our high quality reports are usually delivered within two
weeks rather than months, thus allowing our clients to
make informed decisions.
• Affordable prices
In today’s economic environment we understand that
organisations have to be cost ef?cient. Our business
structure enables us to offer tailor-made reports at highly
competitive prices.
When carrying out due diligence we access public record information
and, where possible, obtain data from the primary source. This could
be from the of?cial company registry or local courts. Details of all
the information contained in our reports are recorded or stored so, if
necessary, we can return to the source documents.
By accessing only public records you can be con?dent that the
turnaround times we quote will be met and that you will be able to rely
on the information obtained to support your decision making process.
Minimise your risk – know what you need to know
Descriptions of services
• Subject identi?cation
Public records and media are reviewed in order to identify the
subject. In terms of companies, local company registries are
checked (local to where the company is based) to validate the
company’s existence. In this process, no company records
are obtained; only the company’s existence is veri?ed. When
identifying individuals, local databases are used (e.g. company
and electoral registration databases, address databases,
online directories). It is possible from time to time that within
the scope of the report, the subject cannot be identi?ed or
personal information (such as date of birth, address and ID
numbers) cannot be found.
• Company records
Company records are retrieved from local company registries
(local to where the company is based) in order to obtain
information relating to Directors and shareholders (subject to
availability and ?ling).
• Directorship checks
A search is conducted for current directorships, previous
directorships and shareholdings in local registries. The
availability of information may vary in each country. For
example, some countries’ registries do not provide business
af?liation information for individuals, or only provide current
business association information.
In countries where limited or no information is available
relating to business positions, a third party may be used to
obtain this information.
• Global and local PEP & Sanction checks
Politically Exposed Persons (“PEP”s) are considered high
risk in today’s regulatory environment. Regulation requires
Enhanced Due Diligence (“EDD”) when conducting business
with PEPs, particularly when they become part of private
banking transactions. Heavy ?nes have been imposed on
?nancial institutions that have conducted business with PEPs
without following adequate Know Your Customer (“KYC”)
procedures and EDD processes.
Global PEP lists include pro?les of PEPs, as well as family
members and close associates. We obtain information from
the most important sanction lists around the world and group
them into one category called the Global Sanction List. The
Global Enforcement List (“GEL”) is comprised of information
received from regulatory and governmental authorities.
It includes the content of warnings and actions against
individuals and companies; listing narcotic traf?ckers, money
launderers, fraudsters, human traf?ckers and other criminals.
More than 800 enforcement lists are continuously monitored
to provide the most comprehensive protection to our clients.
• Published media and internet
Searches are undertaken in English and/or a local language
within the published media and using the internet. These
searches include:
1. Local (where the subject is located) – media searches
of the national newspapers and very often regional or
town papers; trade press and other published media.
2. A search of the internet within the desired location
using Google, Yahoo, Bing, and country speci?c search
engines (if available) and social media.
Local language media and internet searches are added for
countries where English is not the of?cial/main language (e.g.
Russia, China, Vietnam, Spain). Searches can be undertaken
for ‘negative only’ comments where the focus is on adverse
information regarding the subject in question; or full searches
where general business related information as well as adverse
information is retrieved regarding the subject.
• Country speci?c checks
Search of data sources in the scope jurisdiction of the subject
will include litigation, bankruptcy and regulatory sources.
Searches vary by country depending on the availability of the
information. Only adverse information would be retrieved and
reported to the client.
• Litigation searches
Only cases in which the subject is the defendant are reported
(unless a speci?c request is received). Case details are either
reported in brief format (information includes the parties involved,
case number, case date and the subject matter) or summarised
format where a summary of the case (if available) is provided.
• Financial checks
Financial checks include bankruptcy, insolvency and debt
related information (where available).
• Regulatory checks
The relevant industry regulatory bodies are searched. For
example, if the subject is active in the ?nancial industry the
subject’s name is checked against the local ?nancial regulator
for adverse (?nes, sanctions) as well as general information
(licensing information for providing ?nancial services). If the
subject is active in more industries, all relevant industry
regulatory bodies are checked for information.
• MRZ passport check
Veri?cation of machine readable passport details (MRZ code).
This compares the codes built in to the passport with the
identity details provided or found. A good quality photocopy
of the relevant ID page, showing the machine readable
algorithm, is required to conduct this check. This will help
verify that the passport you have seen is a valid passport.
PKF Littlejohn LLP, 1 Westferry Circus, Canary Wharf, London E14 4HD
Tel: +44 (0)20 7516 2200 Fax: +44 (0)20 7516 2400 www.pkf-littlejohn.com
PKF Littlejohn LLP, Chartered Accountants. A list of members’ names is available at the above address. PKF Littlejohn LLP is a limited liability partnership registered in England and Wales
No. 0C342572. Registered office as above. PKF Littlejohn LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility
or liability for the actions or inactions on the part of any other individual member firm or firms.
Get in touch
For more information please contact:
Martin Moore
t: +44 (0)20 7516 2320
e: [email protected]
Jim Gee
t: +44 (0)20 7516 2288
e: [email protected]
doc_442051990.pdf