How can companies mitigate the risks of corruption associated with PEPs?
Trust is one of the most important assets of a company, so its success relies on the trust of its customers, investors, regulators and employees. If this trust is lost, the company then suffers financial, legal and reputational consequences and sometimes it never recovers: just ask Mossack Fonseca, the company at the heart of the Panama Papers scandal, which has closed last March.
One of the major risks to a company's reliability is the way it manages Politically Exposed Persons or PEPs. Concern about PEP is very common. They may be clients and investors of a company or its official representatives who decide on its bid for a state contract. Most PEPs act legally.
PEPs are people who have been entrusted with important public posts, so that for any non-legal or unethical conduct or behavior, public opinion is affected, sometimes to a loss of confidence. Any company associated with a dishonest PEP will also lose public trust.
In addition, illegally operating PEPs are one of the main causes of corruption in the countries, which can hinder their economy, their political system and deteriorate the living conditions of their citizens. It is a heavy burden for a company to have this on the conscience. How can companies mitigate this risk? Download our guide today by completing the form on the right.