Compliance of relationships entails a crucial set of measures that monitor and mitigate potential risks to ensure the authenticity of business relationships. Both individuals and business conduct compliance checks to identify associates and uncover any potential risks of illegal activities like money laundering, fraud, and terrorist financing. It is important to note that compliance of relationships, entities and contacts are interrelated and form a critical component of your overall compliance level.
How to achieve 100% compliance of a relationship
- In Relationship go to Compliance/Details
Take a look at the columns below to determine the necessary adjustments required to increase the compliance level to one. It is important to note that failure to fully implement these adjustments will result in a reduction of the compliance level.
- Descriptors: They can significantly impact relationships and even compliance levels. To add the compliance related descriptors, simply click on the descriptor, input the relevant information, and save it.
- Documents: Certain documents are mandatory according to document compliance policies. You can include them by selecting the dots within the document section, which will lead you to “Docs”. From there, click “Upload Document” and then save your changes.
- Risk review: Navigate to the “General/Details” section, click “Review now”, enter information in the pop-up window, and save.
- Compliance review: Click on the three dots or from Compliance button to navigate to the “Compliance/Compliance Risk” section. All of the required need to be fully compliant so you will be allowed to do Validation. Click on Validate, fill the needed information and SAVE.
- Screening can be accessed from the three dots here or Compliance/Screening. The significance of screening and its execution is comprehensively detailed in a separate article.
- Related Contacts and Related Entities: Access to them is available by clicking on the corresponding dots or buttons located above. It is important to verify the compliance level of these contacts or entities by following the same steps provided. Once all related parties are confirmed to be 100% compliant, the compliance level for this relationship will positively reflect these efforts.
Based on the necessary criteria, the compliance of the relationship will be 100% when all the required parameters are fully met.
Good to know
- To attain a 100% level in that section, all descriptors (documents, etc.) must be added. In cases where not all are included, the level will not be 0%, but rather somewhere between 0% and 100%
- If a relationship lacks a connected contact or entity, the corresponding columns will not be displayed in the Compliance/Details section
- In Relationship settings under Risk levels, the frequency for conducting risk reviews is specified