The Fourth Money Laundering Directive (4MLD) came into effect on June 26. Regulated businesses in EU member states will need to adopt a stronger, risk-based approach to prevent money laundering and terrorist financing. Failure to do so could bring penalties ranging from public censure to fines to withdrawal of authorizations.
Jane Jee knows how tough it can be for firms to ensure their compliance. A specialist e-money regulation barrister, Ms. Jee is the CEO of Kompli-Global, the world’s first networked global search platform designed to meet 4MLD requirements. Kompli-Global uses a blend of technology and investigators to provide detailed written reports that allow their clients to make informed decisions. Their platform helps reduce the time and cost of researching across multiple languages and jurisdictions. It maintains a permanent complete audit trail of all searches and results and its ongoing automated monitoring provides refreshed results as new information becomes available.
Ms. Jee said Kompli-Global was established as a result of founder John Davies learning how difficult it was to perform due diligence on clients. Hard enough within the United Kingdom, and even harder once you get into foreign jurisdictions.
“If you are regulated and have to carry out customer due diligence, the platform enables you to do this,” Ms. Jee explained.
Kompli-Global does not maintain their own database, but they use internet search and also scour the unstructured web to uncover relevant information. Only a small percentage of available information on a client is uncovered by a standard search engine query, Ms. Jee said, and with 4MLD’s heightened emphasis on accurate risk assessments, more effort is required, especially for companies conducting business in different countries and cultures.
Ms. Jee explained Kompli-Global has a network of advisors who conduct searches in their native languages, attaching the target’s name to more than 500 unique words such as “fraud” and “criminal”. That allows them to address local differences in syntax and form that other search methods may overlook.
“There is no substitute in compliance for some degree of human judgement,” Ms. Jee said.
With the vast majority of search subjects posing no actual risks, Ms. Jee said the objective is to get them approved as quickly as possible while conducting a thorough search. Two levels of due diligence reports are available. Kompli-xCell combines Kompli-IQ with human investigation to produce a customer due diligence report on a subject gleaned from detailed searches of a comprehensive list of public domain information sources. Due diligence specialists produce reports in languages while accounting for local differences in semantics and slang. Kompli-Forensik is an Enhanced Due Diligence report addressing red flags uncovered at the customer due diligence level that is produced to customized criteria and scope.
Not only does a thorough search help companies be compliant with 4MLD, it can also produce new revenue generating opportunities, Ms. Jee said.
“The better you know your client and you know their company, the more you know about their business, you are able to offer other services to them.”