Two major regulations have been required for the procurement functions since 2017: the Sapin II Act, the anti-corruption provisions of which came into force on 1 June 2017, and the regulation on the duty of care. In this context, it is undeniable that the regulatory pressure is increasing, requiring new business processes. These processes may also be of interest to non-reporting companies as part of a KYS (Know Your Supplier) or CSR (Corporate Social Responsibility) voluntary process.

How to meet the new obligations?

Although these are two regulations with different objectives and perimeters, there are similarities in the processes to be put in place. First of all, you need to do an internal mapping for each of them in order to identify the areas of risk and your company’s exposure to them. Secondly, from this map follows the need to carry out, among other things, training and monitoring actions to prevent these risks, as well as steps to evaluate your third parties.

KYS solutions

Whether it is to fight corruption, traffic in influence (Sapin II Law) or to assess the respect of fundamental rights by your trading partners (of which the fight against corruption is one of the fundamental elements of knowledge of third parties),. Ellisphere assists you in setting up evaluation procedures for your third parties (customers, suppliers), adapted to your cartography.

The assessment of your third parties is based on three analyses: the legal identification of the third party, the calculation of the financial risk and the estimation of the operational risk. This assessment may, for example, require the identification of the beneficial owners that Ellisphere carries out through automated processes or the intervention of experts. The next step will be to verify whether the actual beneficiaries or any counterparties are on the lists of politically exposed persons or sanctions.

We provide you with essential elements to increase the productivity of your due diligence and KYS actions. Our reliable and comprehensive information gathering solutions allow your teams to focus their expertise on analysing the elements provided by our services.