KYC and counterparty due diligence

The Tenet Forensic team will help you make a well-balanced and informed decision about working with a potential counterparty.

Our team promptly collects and analyses all necessary information from various sources so that your company is immune from any financial, reputational, or other losses associated with the actions of a bad-faith business partner.

We provide counterparty due diligence services in various countries in the Middle East, Europe, Asia, the CIS, North and Latin America, and Africa. The due diligence process may include varying levels of research, from obtaining data from official registers to a comprehensive analysis of the entire body of publicly available information, as well as consultations with expert sources and market participants on issues of interest. The scope and parameters of the due diligence are selected on a case-by-case basis, depending on the client’s request and needs.

Following our work we deliver in-depth, extensive information on the partner and a description of related risks, based on which the client can make an informed decision about the feasibility of and approach to working with the counterparty.

Typical cases

Clients most frequently request KYC and Integrity Due Diligence reports for the following scenarios:

Counterparty due diligence as part of compliance with applicable laws (AML, Anti-bribery and anti-corruption compliance)

Case description: A company would like to conduct integrity due diligence on a prospective counterparty in order to ensure compliance with applicable legal requirements (AML, anti-bribery and anti-corruption compliance) or mitigate risks for its business arising from working with the counterparty.

Our response: Our team uses a wide range of public sources, including corporate registries, available corporate filings and many others, as well as a network of market experts in all relevant jurisdictions to:

Establish registration details, ownership and management structures of the targeted company;
Identify reputational risks associated with the target, its parent entities and key individuals, including involvement in questionable and corruption schemes, sanctions risks, affiliations with politically exposed persons (PEPs), involvement in disputes with regulators and authorities, etc.
Consult non-public experts to verify the data obtained in public sources and find additional information that was not publicly disclosed

Benefits to the client:

Based on our team’s reports, the company’s officers make decisions on the possibility and a form of cooperating with prospective counterparties, considering all of the identified risks.

Creation of a joint venture or M&A transaction

Case description: A company is considering creating a joint venture, establishing a partnership to enter a new market or an M&A transaction, and needs to properly identify, assess and mitigate risks associated with a prospective counterparty.

Our response: Our team collects and analyzes information from a wide range of open sources in the jurisdictions covered, including official corporate registers, in order to identify the ownership structure of the group, its key individuals, describe its reputational profile and relevant risks, such as indicators of involvement in corruption or unethical business conduct, affiliations to politically exposed persons (PEPs), and sanctions risks.

Benefits to the client:

Based on our deliverables, the client makes an informed decision whether to proceed with or refrain from partnering or investing in the targeted company.

The need to submit a KYC report to a bank upon opening an account (for individuals and legal entities)

Case description:

A legal entity or a natural person is requested to provide a KYC report on themselves when applying for a bank account

Our response: A team of experienced analysts uses a wide range of publicly available sources, ranging from official company registries, available corporate filings and court records to media archives and social media websites, to establish the client’s registration details, its parent entities and UBO (if applicable), its main lines of business, as well as identify and assess risks associated with the client, and obtain all other relevant information in accordance with the bank’s request.

Benefits to the client:

KYC reports prepared by us as experienced independent consultants allow the client to facilitate relationships with the bank and open bank accounts.

Internal investigations/Potential conflicts of interest

Case description:

A company is conducting an internal investigation and requests information and analytical support with respect to its certain parts.

Our response: We collect and analyze information from both public and non-public sources helping investigators with multiple issues, for example, identifying UBOs of legal entities allegedly involved in fraudulent schemes, checking them for affiliation with the company’s insiders or searching for indications of corruption/conflicts of interest in the activities of its employees.

Benefits to the client:

Our in-depth KYC/CDD analysis may play a critical role in an internal investigation allowing the client to identify hidden risks that cannot be identified by obtaining data only from official registers and using automated solutions.