Refinitiv’s new due diligence report, Snapshot, delivers a concise, cost-effective initial view of any company or individual, including essential insights that allow companies to quickly assess the potential risk inherent in customer, business, and third-party relationships.
- Due diligence gives essential insights that allow companies to quickly assess the potential risk inherent in customer, business and third-party relationships.
- There is a real need for automated, data-driven due diligence reports that deliver essential information quicker and in a more cost-effective way than previously.
- Refinitiv’s Snapshot offers an opportunity to assess risk in a rapid and cost-effective manner, and empowers all organizations to make better, more informed decisions.
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Refinitiv research consistently points to the pervasive nature of financial crime: In our 2019 global survey, nearly three-quarters (72 percent) of the organizations that participated confirmed that they had been aware of financial crime in their global operations over the preceding 12 months.
Moreover, in our 2020 third-party risk survey, 60 percent of respondents said they are not fully monitoring third-parties for ongoing risks, and 43 percent of third-parties do not receive due diligence checks.
Given this stark scenario, organizations need accurate, affordable tools to help them root out financial crime and corruption. Such tools must enable them to pinpoint and assess the potential risk inherent in all customer and third-party relationships.
How can enhanced due diligence help?
Enhanced due diligence (EDD) is an invaluable risk assessment tool, delivering detailed integrity and advanced background checks on entities and individuals. However, the cost and time involved in traditional EDD may not be warranted, for example in instances where high-volume, low-risk relationships are being assessed.
Furthermore, the developing regulatory landscape is driving a wider need for due diligence on a greater number of business relationships.
For example, the European Commission has conducted a study on due diligence requirements and subsequently committed to new EU rules to regulate supply chains (April 2020). Meanwhile, the U.S. Department of Justice has updated its guidelines on evaluating Corporate Compliance Programs (June 2020).
There is consequently a real need for automated, data-driven due diligence reports that deliver this essential information quicker and in a more cost-effective way than previously.
Watch: How has the need for Enhanced Due Diligence changed for customers?
The information also needs to be insightful and efficiently integrated into existing workflows if users are to make informed decisions about all customers, third-parties, transactions and investments.
Concise, indicative view of risk
Refinitiv’s new Snapshot report addresses the gap between traditional EDD and the growing requirement for affordable, preliminary assessments by delivering a concise, indicative view of risk that can be used to prioritize business relationships.
In the past, enhanced due diligence has been reserved for customers or third-parties that are perceived to present the highest risk, but often organizations need a quick assessment of potential risk without the cost and time associated with traditional EDD reports.
Furthermore, the range of organizations now included in regulatory requirements relating to know your customer (KYC), know your supplier (KYS) and know your third-party is increasing on an ongoing basis.
Preliminary assessments and onboarding requirements
A vast number of companies now find that they need to conduct preliminary assessments on potential customers, suppliers and other third-parties, and to define onboarding requirements based on risk. These businesses also need to monitor existing relationships for new risk that could impact their businesses.
Some examples of businesses that could benefit from concise, affordable, preliminary due diligence include:
- Online business-to-business (B2B) and business-to-consumer (B2C) marketplaces that need to ensure that the participants on their platforms meet the desired standards.
- Financial institutions conducting due diligence checks in traditional or new settings, such as during the onboarding of digital banking customers.
- Governments or agencies conducting initial checks for individuals seeking citizenship or residency.
- Corporates and organizations checking third-parties and supplier risk, for both onboarding and ongoing monitoring.
Snapshot due diligence reports
Snapshot has been designed to offer a powerful blend of leading-edge technology and trusted human intelligence that delivers cost-effective, targeted information with rapid turnaround times.
Snapshot leverages AI and natural language processing (NLP) to create a consolidated view of public domain insights in an ‘attended automation’ format. This essentially means that the report is automatically produced and then quality checked by Refinitiv analysts.
Watch: Refinitiv has your urgent due diligence needs covered
These reports are invaluable for high-volume, low-risk due diligence checks, and where pre-due diligence or initial checks are needed to inform decisions about which subjects require further investigation.
Each Snapshot report includes:
- Business overview information (for companies), such as the name of an organization, its address and details of the main officer.
- A World-Check record, if available.
- Adverse information from news sources and open sources.
- Country risk information.
Snapshot’s consistent, tabular format makes it easy to pinpoint relevant information quickly, but the reports also offer a host of other benefits, including scalability and rapid turnaround — reports are available within a matter of hours.
The dynamic, competitive pace of global markets today; the pervasive nature of risk; and ever-increasing regulatory scrutiny mean that it has never been more important for organizations to protect themselves against financial, regulatory and reputational damage.
Refinitiv’s latest EDD innovation offers an opportunity to assess risk in a rapid and cost-effective manner, and empowers all organizations to make better, more informed decisions about customers and third-parties, and the potential risk they could introduce.