We created the Red Flag report to quickly assist clients needing to onboard or assess a counterparty.

RAPID COMPLIANCE INSIGHT

Anti-Money Laundering (AML) and Know-Your-Customer (KYC) rules have never been more stringent. Many of our clients, particularly in the wealth management and family office space, are now required to screen thousands of potential counterparties each year. We understand the time and cost pressures that this imposes, especially for large compliance conscious clients who do not want to compromise on best-in-class diligence.

We have designed our red flag checks to meet this need. They are used regularly by our clients, including many of the world’s blue-chip financial services firms and corporates, to quickly and cost-effectively identify, triage and manage counterparty risks relating to their third parties and potential customers. Our reports help map source of wealth, explore political exposure and flag other, potentially hidden, reputational risks. We produce thousands of these reports every year, written by our multilingual team of analysts in our research centres in London, Hong Kong and New York. The focus is on high quality research and avoiding the “tick-box”, automated approach to compliance that can lead to basic onboarding errors or flagging unhelpful false positives.

With many of the key reputational risks already flagged in our initial red flag check, we are in the best position to conduct further research where needed. This could be targeted research such as the physical retrieval of in-country records, to better understand the ownership structure of a company or the outcome of a piece of litigation. Or, the case may require on-the-ground enquiries to gain deeper insight into a third party’s reputation, particularly in more opaque jurisdictions or those which do not have a free or fair media environment. Where initial checks identify a high-risk or sensitive client, our comprehensive “enhanced” due diligence review leverages our full suite of research and human intelligence capabilities, to provide the additional scrutiny needed to the meet the onboarding requirements of a Western financial institution.