The importance of KYC due diligence

The objective of KYC due diligence guidelines is to establish verifiable means by which the integrity of companies can be assessed. This level of intelligence offers a number of advantages:

• It ensures the business meets your performance requirements
• It reveals the legal standing of the business, including its legal history
• It gives you an insight into its operational processes
• It reveals the financial dealings of the business, including credit history
• It helps you to better understand the business and its values It enables you to manage risks more effectively

Whether it’s for commercial due diligence or to meet KYC compliance requirements, you can never have too much information on your potential partners. This is where Infospectrum come in.

How our KYC due diligence can benefit you

The global commodity trading and freight markets are no exception to the increasing need for KYC due diligence. Over the last 30 years, the need for transparency in these sectors has risen as traditional layers of trust and industry relationships have deteriorated. This has been caused by a flood of new industry entrants, including opaque physical or derivative market speculators, and longer term investors from outside the industry who wish to enforce more established KYC and compliance procedures. This process has accelerated more recently, as external compliance requirements have been enforced, in particular anti-bribery and sanctions avoidance.

Our analysts are known for their ability to source difficult to reach information and turn it into meaningful intelligence, such as on limited public disclosure, operations details, and offshore corporate structures.

We can challenge your brief and deliver the comprehensive level of detail you need. Infospectrum’s long experience in the commodity trading and freight sectors, and its familiarity with the highly complex and often unconventional corporate structures used in these sectors, helps our clients meet their KYC and due diligence obligations, even for some of the most low-profile, offshore-registered companies.

Read our case study

See how our KYC due diligence has previously benefited our clients in this case study. For key insights into your industry and competitors, choose from our three service packages here.