The Power of Detailing – Lehits

There is no doubt that the existence of different definitions of ultimate ownership, the lack of records for public property, the complexity of corporate legal structures and the use of tax havens pose significant challenges to organizations affected by the latest anti-money laundering and counter-terrorism. Regulations (AML/CTF). Transparency about ultimate beneficial ownership (UBO) is still the exception rather than the rule in many tax states.

Getting a detailed look wasn’t easy. To define a UBO, different compliance teams must rely on multiple reports and spreadsheets, as well as online company information reports, which are often inflexible and inaccurate and do not necessarily align with other systems and data sources. It can usually take several days before you can manually select attributes (confirm company name, address and registration information), verify these attributes (such as ownership levels and financial data), and, if necessary, perform more complex due diligence processes. In the meantime, the structure examined may change, while small modifications in one part greatly affect the whole as such.

Being able to quickly see how an organization is structured is essential to the Know Your Customer (KYC) process. Large financial institutions need rule-based workflows that visualize the organizational structure in a modern way to support KYC automation.

By far, the most popular method is to combine workflow and content together through an application programming interface (API) technology. This significantly speeds up the data collection process and ensures that workflows can be created as needed, enabling seamless processing where possible and quickly routing complex repairs to the appropriate teams.

Instead of being linked to an online company information report and UBO decision tables, the compliance analyst sends a query to the respective business entity via an API. It launches an analysis of the direct, indirect, and loop ownership structures of a business entity and provides relevant shareholders, including a percentage of their own, within seconds. It also supports the creation of alerts methodology or alerts for captured ownership changes.

By interrupting the repair cycle and being able to respond immediately to changes, valuable company resources can focus on the right customers, evaluate important changes, and confirm those that do not pose a threat. In addition, the ability to identify true owners with literally a few clicks not only helps speed up the standard setup process, but also frees up internal resources to focus on more complex investigations. At the same time, it reduces reputational risk (including through the search for potentially malicious politically vulnerable people – PEPs) and reduces operating costs.

Using up-to-date, accurate, and reliable data sources that combine global corporate relationships with common and personal equity ownership in the form of a DaaS (Data as a Service) will enable organizations to have a reliable detailed view of specific issues. The customer needs to meet compliance requirements. while mitigating the risk of damage to your reputation.

Best of all, by sharing relevant, high-quality data within the organization, it enables the transformation into a more flexible and competitive company, where compliance becomes just a necessary commitment.

All this and much more is now available in our e-book Understanding Ultimate Property StructuresPermanent beneficial ownership structures:

Download the complete e-book

Editors, Don and Bradstreet

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