Getting all your ducks in a row
It is evident that lawyers, accountants, and bankers alike are attempting to ‘find a way’ to do business with entities that they know are unsuitable, either because they are so desperate for business in the current dire economic straits or because their only concern is to bring the money in regardless of the cost down the line.?The case for due diligence. To read the full article please click here
Short-termism persists, not only in the act of pursuing unsuitable clients in the first place but in the practice of how the KYC checks are done. In-house compliance analysts have to rely on freely available social media and databases to make their calls, when such a limited source base is inadequate because of the degree to which bad actors are manipulating online information. The databases will only tell you what is already known and not what lengths the target may have gone through to hide. Even the framing of KYC itself is being diminished, with increasing requests to target only certain aspects of criminality or consider a facet or locality as off-limits. But people are desperate for business…