Due Diligence: Data Acquisition

Due Diligence: Data Acquisition

As I indicated in my previous post, data acquisition procedures to perform due diligence are a topic that comes up regularly in the discussions. The ACAMS meeting did not fail in this respect.

All the speakers agreed on the importance of collecting information to achieve correct due diligences. Opinions differ however on the value of collecting this information manually or automatically.

Manual collection can be time-consuming and therefore costly, and some people are wary of human errors that can lead to misinterpretations, particularly in terms of risk. The automatic collection of information is certainly faster and cheaper. In strictly personal terms however, I am very sceptical as to the accuracy or extent of the information collected automatically.

Nevertheless, there are figures that do not deceive, since the survey done on the spot indicates that 95% of the participants are of the opinion that the question of the collection of information is getting more complicated.

95% of voters think that the data collection is becoming more and more tedious

Being complicated is one thing, but it also requires the largest time investment in the due diligence process. 69% of the time investment only for the collection gives you an idea of ​​the workload.

69% of voters report spending the most of their time collecting data for their due diligences

In relation to this problem, we must distinguish between the “big consumers” of information, the banks and all similar organizations in which the number of daily cases handled is in the hundreds or even thousands, and our “small consumer” organizations with only a few new cases to process per month or per week.

Small or large consumers, the cost of processing and the reliability of data remain the two major issues. I hope however that the numbers mentioned above will make our readers feel less lonely when they are cursing the time spent on these approaches.

It is with SMEs in mind that we have developed IBAKUCOMPANY SEARCH, which combines the advantages of automatic search by browsing the Net for consistent information, with manual data collection, considering that it is obvious that you cannot find everything on the Net. Even though some are propagating this.

I am convinced that there will be more and more information available on the Net in the future; but it is necessary to be realistic, advances such as the constitution of the Central Registers as provided for in Article 30 of the 4th Directive are not likely to be implemented in the near future.

In this process of identifying clients, we must not lose sight of the Sword of Damocles hanging over the heads of companies and which is called: possible sanctions!

This issue of sanctions will soon be the subject of a new post.

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