Know Your Customer (KYC)
Do you know who you are dealing with?
KYC investigations serve three critical purposes:
- Prevent reputational risk by not trading or otherwise associating with entities whose history and/or future conduct (with which you will be associated) may severely tarnish your public image and brand name.
- In terms of financial intelligence and security legislation you are compelled by law to investigate your clients/customers prior to entering into any financial transaction. Non-compliance is met with severe regulatory penalties.
- Knowledge of customers/clients, suppliers and other entities with whom you actively associate will enable you to make informed business decisions.
The happenings of the unfortunate 9/11 event sparked an international awareness of financial security which resulted in all countries of the world adopting some or other form of legislation placing a burden on commercial entities to “know your customer”. Commercial entities are compelled by law to investigate their customers, contractors, suppliers and business associates in order to ensure that they are not knowingly or inadvertently involved in the:
- Financing of terrorism
- Facilitation of money laundering or organised crime
- Support of politically displaced individuals
Business Information You Need
Our KYC Report Includes:
- Legal entity registration particulars
- Personal particulars of all officials
- Address verification of commercial entity and/or officials (electronic or physical verification)
- Verification of standing with industry regulators and/or associations, industry reputation and reputation of trade creditors
- Credit record and verification of assets and liabilities, including credit exposure
- Verification of stated capacity/infrastructure/supplies/staff and revenue service registration
- Standing with and/or clearance by revenue service and additional institutions
- Verification of BBBEE certification, associated individuals and legal entities
- Matching of entity, officials and associates against organised crime database, money laundering and anti-terrorism
- Matching of officials and associates against data base of politically displaced individuals and individuals disqualified to hold office
- Matching of legal entity and officials against insolvency/sequestration/liquidation database
- Supply of links to all media reports (national and international) involving entity and officials forming the subject of investigation
In South Africa liability and vicarious liability of directors and officials of legal entities have been extended through the Financial Intelligence Centre Act, the Criminal Procedure Act, the new Companies Act and is further elaborated on in The King III Report on Corporate Governance.
Not only will our KYC Report provide you with critical information but it will ensure that you participate in the objectives of relevant legislation and thereby absolve you and your officials of vicarious liability and the harsh punitive consequences of non compliance.
Informed Critical Decisions
Our in depth KYC reports provide you with critical information allowing you to make informed business decisions when considering the following :
- Forming joint ventures
- Granting credit and/or security
- Contracting and/or sub-contracting
- Forming business relationships in general
No critical business decision should be taken in a vacuum or with insufficient information or untested information.