In the e-commerce environment, criminals often use fake or stolen identities to gain access to online commerce platforms by pretending to be legitimate customers. But an organization’s exposure to risks is not just limited to customers. The risk is also apparent in relationships with business counterparties. Although supplier partnerships are critical for business growth, these vital connections can expose the business to a number of financial crime risks including:
As a result, due diligence—the process of assessing the extent to which a customer or business partner exposes an organization to risks and breaches of sanctions regulations—cannot be overstated. AML and compliance safeguards are critical because e-commerce businesses need to know who their customers are and be confident that their business counterparties are compliant with the requirements set out by domestic laws and regulations.
Increasingly businesses are relying on solid data-driven technology to screen their entities efficiently and in accordance with the Anti-Money Laundering and Counter Financing of Terrorist (AML-CFT) rules. By doing so, they can stay at the frontlines of combating money laundering and the financing of terrorism; ensuring effective policies, controls and human capital.
LexisNexis® Risk Solutions can help businesses predict and mitigate financial crime risk and help prevent risky relationships and potential losses. Making sure appropriate due diligence controls are in place with e-commerce AML and compliance safeguards not only limits exposure to fraud, but also leads to productive and healthy regulatory compliance.