Enhanced Due Diligence is essential for onboarding politically exposed persons and organizations. Biznexxus compiles the data of the politicians and politically exposed persons, which is of great importance to the banking and finance sector to assess the risk associated with the business with these heightened risk entities.
Defining Politically Exposed Persons?
Biznexxus which compiles the information about the politically exposed persons, classify the politically exposed persons and entities into various heads such as bureaucrats, politicians, relatives of politicians and business associates of the politicians.
However, this is a very crude definition of Politically Exposed Persons. There is no one fit all definition of the term Politically Exposed Person and every country needs to define the same to manage the risks associated with Politically Exposed Persons. Indiaforensic, which offers training and certification courses on forensic accounting and anti-money laundering defines the Politically Exposed Persons in the Indian context. The image below is a depiction of India-related politically exposed persons.
The infographic above considers the Indian political scenario and the taxonomies to define the term in-depth. The definition covers Legislative bodies such as Loksabha, and Rajyasabha, members of legislative bodies, security forces, and relatives of the politicians. It also endeavors to define the term Politically exposed directors.
Enhanced Due Diligence Reports
Bankers are required to perform enhanced due diligence where there is an involvement of a Politically exposed person. Growing demands on internal resources often cause delays in clearing clients or prospective business partners, damaging the relationship and, at times, missing what could have been valuable to assess the business opportunities.
Political Nexus
Biznexxus provide the Enhanced Due Diligence Report on the registered Indian companies. Our enhanced due diligence report considers different possibilities in which Politically Exposed Persons operate in the business world. Some of the possibilities which our report considers are
Political Competition
One of the significant considerations in an Enhanced Due diligence report is to analyze the companies where more than one politician from different parties are involved. The picture sketched by media about the cut-throat competition may not be true always. There are politicians who represent rival political parties but they do the business together. Sometimes the business is a family business but the political parties are different.
Party Politics
Another consideration in the Enhanced Due Diligence report is to analyze the companies where more than one politician from the same political party is involved. This type of report shows the ties that the politicians from the party enjoy with each other in the business.
Historical Associations
When the politicians have to exercise their political clout or power, they get associated with certain companies for a short period of time and once the benefit is passed on to the company or when the event is completed then they prefer to resign. Biznexxus reports considering these associations in the Enhanced Due Diligence Reports.
Contact us to find out more about the Enhanced Due Diligence Reports
