Compliance is more than just a legal obligation. It is about risk management, trust, and making informed choices. Up-to-date and reliable data is essential for this. In this blog, you can read about the information that is essential for a solid compliance process.
Determine your risk tolerance
Every organisation has a risk appetite. Some companies focus exclusively on complying with laws and regulations. Other organisations consciously choose to take additional measures, for example to limit reputational damage or the risk of sanctions.
Banks are required to comply with strict obligations, such as the Anti-Money Laundering Directive (AML). International brands attach great importance to corporate social responsibility and do not want to be associated with parties involved in, for example, child labor or bribery.
The way your organization deals with risk determines what data is needed to carefully set up compliance.
Interesting read: Compliance is important, but why exactly?
Essential business information
When collaborating with other companies, it is crucial to understand who you are doing business with. This begins with basic information about the company. Incomplete or outdated data can lead to delays, invalid agreements, or legal risks.
Check that the following info is available and up to date:
- Official company name
- Adress and contact details
- Enrolment in the Commercial Register
- Description of business activities
Use this information to check whether an organization is legitimate and fits within your compliance frameworks.
Insight into UBOs
To limit the risks of money laundering, fraud, or sanctions, it is important to have insight into the ultimate beneficial owners (UBOs) of an organization. For organizations that fall under AML legislation, this is a legal obligation, but other companies also consciously choose to actively manage these risks.
Relevant data:
- UBO information
- Screening against PEP and sanctions lists
Interesting read: Reputation at stake? Here's how UBO monitoring helps you stay ahead of risks
Financial stability of business relationships
The financial position of a customer or supplier also plays a role in a robust compliance process. Insight into financial health is particularly important in the case of long-term partnerships or contractual obligations.
Data you need for this:
- Annual accounts
- Financial health scores
- Sector or industry-related risks
This allows you to make clear payment arrangements in advance and reduces the risk of late payments or disputes.
Finally
Effective compliance starts with insight. Whether it concerns company data, UBO structures, or financial risks, you want to be able to rely on the data on which you base your policies and decisions. Therefore, carefully identify which information is essential for your organization and how you can apply it structurally within your processes.
Altares Dun & Bradstreet helps with this by providing reliable compliance data and solutions for onboarding, monitoring, and risk assessment.
Read more about our compliance solutions here
