Two major regulations have been imposed on purchasing functions since 2017: the Sapin II law, whose anti-bribery provisions came into force on June 1, 2017, and the regulation on the duty of care. concerning the plan to be included in the management reports for the 2017 financial year. In this context, it is undeniable that regulatory pressure is increasing requiring the implementation of new business processes. These processes may also be of interest to companies that are not subject to the law, as part of a voluntary KYS (Know Your Supplier) or CSR (Corporate Social Responsibility) approach.

How to meet the new obligations?

Although these two regulations have different objectives and scopes, the processes to be implemented have similarities. Firstly, you must carry out an internal mapping for each of them in order to identify the risk areas and your company's exposure to them. Secondly, from this mapping comes the need to carry out, among other things, training and monitoring actions to prevent these risks, as well as third party assessment procedures.

KYS solutions

Whether it is to fight against corruption, influence peddling (Sapin II law) or to evaluate the respect of fundamental rights by your business partners (of which the fight against corruption is one of the elements of assessment), a third party knowledge approach is fundamental. Ellisphere helps you set up procedures for evaluating your third parties (customers, suppliers), adapted to your mapping.

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

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