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How Enhanced Due Diligence can save your reputation

Rodolfo Valdes
Rodolfo Valdes
Head of Americas Case Management, Proposition. Refinitiv

When your reputation is your most valuable asset, the failure to spot links to sanctioned third-parties or high-risk individuals can be devastating. How is Enhanced Due Diligence screening able to protect organizations and financial institutions from reputational damage?


  1. Using a risk-based approach (RBA) in compliance management is best practice, as it focuses resources on areas of highest perceived risk and more accurately pinpoints areas of concern.
  2. Even the most efficient compliance department can benefit from access to trusted, reliable data and technology, such as machine learning and AI-based solutions.
  3. Refinitiv offers a combination of cutting-edge Enhanced Due Diligence and screening technology, coupled with invaluable human expertise.

The zero tolerance approaches of the Bribery Act 2010 in the UK or the Foreign Corrupt Practices Act in the United States highlight the severe consequences for any organization or financial institution in failing to manage its corruption risk.

In addition, there’s the potentially devastating reputational damage that can be caused by inadvertently engaging with a sanctioned third-party.

Due diligence delivers detailed and targeted information on any entity or individual anywhere in the world — and being able to access this critical intelligence empowers organizations to make informed decisions to avoid risk.

Risk-based approach

The last few years have seen a fundamental shift in perceptions surrounding due diligence.

In the past, the traditional mindset regarded Know Your Customer (KYC) and due diligence procedures as a somewhat ‘necessary evil’ amounting to little more than a tick-box exercise with a corresponding expense in the balance sheet.

More recently, however, thorough due diligence has come to be regarded as an essential tool to protect against potentially devastating reputational damage by empowering compliance teams to spot real risk before it’s too late.

Corporates and financial institutions need to critically assess risk for all third-parties, including suppliers, vendors and distributors, but should focus their due diligence efforts on areas of medium and high risk, in line with a risk-based approach (RBA).

Applying the RBA to risk management is widely regarded as best practice, as it allows often scarce or stretched compliance resources to be focused on the areas of greatest perceived risk.

This has many benefits, not least that it results in greater accuracy in pinpointing areas of concern.

Tailored solutions

Budgetary constraints have been a significant barrier for many organizations in the past. Advanced screening and due diligence solutions are available to suit any use case and any budget.

These range from basic name screening against a risk intelligence database, to highly bespoke enhanced due diligence, such as detailed background checks, backed by a full human intelligence layer that incorporates trusted insight into the reputational history of any customer or other third-party, regardless of their geographical location.

In the age of big data, even the most efficient compliance department can benefit from access to trusted, reliable data and the right technology, including machine learning and AI-based solutions, to sift through this data and pinpoint risk with accuracy.

Sylwia Wolos quote. How Enhanced Due Diligence can save your reputation

Reputation is your most valuable asset

Best practice tells us that due diligence and screening remain our best defense against financial criminals. These tools are key to avoiding the reputational risk associated with inadvertently transacting with a sanctioned party.

In a tight regulatory environment where often hefty fines for non-compliance pale beside the potentially devastating effects of reputational damage, don’t underestimate the importance of thorough screening, backed by Enhanced Due Diligence where medium or high risk is identified.

Your reputation is your most valuable asset, and accessing detailed, targeted information when it’s needed is the key to keeping that reputation intact.

Evolution of KYC webinar