How Supplier Verification Can Prevent Fraud - Idenfo Direct MENA

How Supplier Verification Can Prevent Fraud

As businesses grow and expand, oftentimes they need to rely on outsourcing from vendors that can offer a certain expertise. When approaching a vendor, they do offer more efficient solutions but are not without risk. Your company is putting itself at risk if it does not carry out due diligence towards its vendors, it makes your company vulnerable to revenue loss, legal issues, reputational damage and much more.

Companies need to employ a KYC (Know Your Customer) program for their vendors. This process reduces the risk of working with vendors greatly because you will have a clearer idea of their authenticity and their internal and external workforce. These programs assess and report to your company on the potential vendor’s compliance against regulations and ethics. Finding this information without such programs is difficult and tricky because a vendor can be doing everything right by the book but unvetted vendors internally can be a source of fraud. The more aware a company is about a vendor before they collaborate, the lower the risks are because they have done their due diligence.

There are certain ways that Idenfo’s KYC program for vendors vets and verifies suppliers. We assign each vendor a risk rating after deeply analyzing them. Based on these risk ratings, the program will show you which vendors rate lowest and which need further assessment. In this way, our KYC program allows you insight that you can’t find elsewhere, like whether your vendor is apart of any terror watch lists or if they have parttaken in any money laundering activities. Idenfo screens all vendors for any links with domestic and international watch lists and AML lists. Idenfo also verifies their bank information, their physical address and any tax or government related documents to prove their authenticity.

Utilizing a KYC solution that is automated is a much more efficient way to vet a vendor as opposed to doing everything manually. Not only will it cost more in man-power but also in time, whereas with a digital platform like Idenfo, the system carries out all necessary checks to ensure that the people you are working with are safe to work with. Idenfo complies with all government KYC and AML requirements to ensure that your business is up to date with ever-changing guidelines, whilst also ensuring that your risk stays at a minimum. Idenfo can do everything you need and more.

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