IntegraWatch® | Compliance Screening is a curated database of individuals and organisations that have been identified as presenting compliance and integrity risks, categorised to 23 risk areas, which clients can screen their third parties against.

IntegraWatch® | Compliance Screening draws on publicly-available and proprietary-information sources to build a database of over four million data points.

FOCUS FOR 2017

New modern slavery and human trafficking statement requirements

The United Kingdom Modern Slavery Act transparency in supply chain provisions mean that all commercial organisations that supply goods or services, carry on a business (or part of a business) in the United Kingdom and have an annual turnover of above ₤36 million must submit a slavery and human trafficking statement each financial year. These statements must set out the steps the organisation has taken to ensure that slavery is not occurring in their own organisation or their supply chain. While the Act is not directive on the steps that must be taken, it is expected every business that meets the criteria (and many smaller businesses) will want to demonstrate some level of due diligence. In anticipation, IntegraWatch® | Compliance Screening has developed a dataset of entities that have been accused, or proven guilty, of engaging in modern slavery. Clients will be able to screen against the dataset (through the category ‘Watchlists and blacklists’) for preliminary and ongoing due diligence of suppliers.

New Policing and Crime Act 2017 introduces changes to the UK financial sanctions regime

The Policing and Crime Bill 2016 received royal assent in January 2017. Contained in that Act are increased custodial sentences and monetary penalties for non-compliance with financial sanctions, and alternative enforcement actions such as deferred prosecution agreements and serious crime prevention orders. IntegraWatch® | Compliance Screening keeps a record of all major sanctions by capturing information from the source, and enriches the database to include secondary identifiers and context to the sanction. 

Supplier risks

The IntegraWatch® | Compliance Screening team will continue to enhance the database in a way that supports identification of compliance and integrity risks in the supply chain. The primary focus will be:

• labour and human rights, covering violations of local health and safety legislation and workers’ rights, including wages, hours, anti-union practices and incidences of modern-day slavery (such as forced or bonded labour, child labour and human trafficking)
• environmental issues, including breaches of legislation intended to safeguard the environment, poor emissions or waste management, and direct violations of environmental enforcement actions.

Sanctions, exclusions and export controls

• IntegraWatch® | Compliance Screening will increase the cover of targeted export controls, sanctions and exclusions lists from outside of the core North American and European datasets.

New IntegraWatch® I Vessels Screening solution

This new database provides detailed information of a vessel and its associated parties, allowing businesses to make informed decisions based on the latest IHS Markit Ship Owner information and our sanctions and watchlists database.

Given the complex and closed nature of the maritime industry, standard due diligence on vessels and their related parties may not reveal ties to governments, entities, and individuals that are under sanctions. Specialist information is required to truly help businesses understand the network of owners and operators behind a vessel and this is not always easily available. 

This new database provides detailed information of a vessel and its associated parties, allowing businesses to make informed decisions based on the latest IHS Markit Ship Owner information and our sanctions and watchlists database.

Given the complex and closed nature of the maritime industry, standard due diligence on vessels and their related parties may not reveal ties to governments, entities, and individuals that are under sanctions. Specialist information is required to truly help businesses understand the network of owners and operators behind a vessel and this is not always easily available. 

This is an extract from The Red Flag Group Annual Report 2016/17. To read the full report please click here

Additional sections of the Annual Report 2016/17 include:

• Our 10-year anniversary and The Red Flag Group in numbers
• The market outlook for 2017
• Product developments 16/17 - ComplianceDesktop® | Compliance Technology Platform
• Product developments 16/17 - IntegraCheck® | Integrity Due Diligence
• Product developments 16/17 - Compliance Managed Services
• Product developments 16/17 - Supplier Integrity® | Suppliers Management Platform
• Product developments 16/17 - Advisory Services