The article notes that the energy sector is capital-intensive and increasingly globalized, so complex supply chains, cross-border financial flows and numerous intermediaries make it vulnerable to financial crime.
“To effectively manage the risks that arise when working with an increasingly wide range of counterparties, companies can use various tools. One of the most effective is due diligence of third parties (due diligence) or KYC (“know your customer”). This process helps companies uncover complex ownership structures and evaluate potential partners based on key risks,” the experts emphasized.
According to them, to implement a third-party verification process, companies can choose to create their own internal compliance systems, using existing internal resources and expertise.
“However, this approach comes with a number of challenges: it requires a sufficient level of specialized knowledge and training of specialists who can effectively work with a wide range of information sources in complex jurisdictions,” the column says.
Companies also have an alternative – to choose to engage external consultants who have the necessary experience, tools and expertise to effectively perform these tasks, the authors added.
