Simplifying third-party due diligence

in a complex world
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Understanding who you conduct business
with has become more than just good
business practice; it is increasingly becoming
a smart compliance imperative. Multinational
organizations are rapidly adjusting to
enforcement standards according to which
companies are responsible for the actions
of their business partners and vendors, and
need to conduct effective third-party due
diligence on them. Be it the Foreign Corrupt
Practices Act (FCPA) in the US, the UK
Bribery Act or the recently enacted anti-
corruption regulations in India, Brazil, Russia,
China and Mexico, governments are taking
clear steps against the practice of making
improper payment through third parties.
The Criminal Division of the United States
Department of Justice (DOJ) and the
Enforcement Division of the United States
Securities and Exchange Commission (SEC)
recently provided guidance on compliance
with the FCPA.
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Integrity Consistency

Client
needs

Accessibility

Our Integrity Diligence teams 1 Consistency

understand this problem. We help
clients design, implement and maintain
effective third-party diligence systems
around the world. Our offerings are
built on our wide and long experience of
conducting complex international fraud-
and corruption-related investigations,
as well as fraud and corruption risk
consulting projects, in every major
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2 Accessibility
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market worldwide.
Our Integrity Diligence offering is
designed to respond to the following
needs of our clients
3 Integrity
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afj]d]nYflbmjak\a[lagfk

Simplifying third-party due diligence in a complex world

EY_ID is a technology tool created by EY
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address the risks involved in their third-party
business relationships worldwide.
The tool is a web-based, globally accessible
platform and provides companies with the
opportunity to collect relevant information
about their third-party partners, segment
third parties by their level of risk, conduct
and document multiple levels of due diligence
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third parties and incorporate streamlined
approval processes in their operations. It
is designed to enhance standardization,
transparency and accountability throughout
the life cycle of a third-party partnership.
EY_ID offers advanced dashboards with
visual data analytics and an enhanced search
functionality.
Simplifying third-party due diligence in a complex world
It also offers a highly customizable
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features such as the following:
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 Today, EY Fraud Investigation & Dispute
Services India has more than 65 third-
party due diligence specialists with multi- Commonly raised red ags
lingual capabilities. The in-house team when conducting third-party due diligence
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Spanish, Chinese, Japanese, Bangla and Omission of certain key personnel/
various other Indian languages. shareholders

An analysis of over 30,000 third-party due

diligence checks which were undertaken A lack of information or trading history
(this factor alone would not rule out
in the last three years highlighted that start-ups)
almost 50% of cases which were reviewed
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A business address in a non-commercial
Sector focus zone or at service ofce suites

Pharmaceutical
Low capitalized company
Suppliers with a small capital base acting
Oil & Gas merely as middlemen for undisclosed
suppliers
Automobile

Financial services Tampering or irregularities with the

tendering process
Acceptance of late bids or bids being
FMCG accepted despite failings in technical
specications or scoring, and bids at or
Retail very close to set budgets

Technology

Types of third parties representing the biggest compliance risk

of respondents
believe risks are

55%
12%
more likely to arise
Vendor/Supplier from third parties
than from
22% Distributor internal staff.
Agent
of respondents have
57% no systems or
Joint venture partner

26%
9% processes in place
to manage and
monitor third-party
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relationships.

Simplifying third-party due diligence in a complex world

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Ahmedabad
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Ambawadi
Ahmedabad - 380 015
Tel: + 91 79 6608 3800
Fax: + 91 79 6608 3900
Bengaluru
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No.24 Vittal Mallya Road
Bengaluru - 560 001
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+ 91 80 6727 5000
Fax: + 91 80 2210 6000
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Bengaluru - 560 001
Tel: + 91 80 6727 5000
Fax: + 91 80 2222 4112
Chandigarh
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Partner
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Kochi
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Kolkata
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Mumbai
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NCR
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Ernst & Young LLP
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