the importance of strong know your customer processes to gain a full idea of who firms are doing business with cannot be underestimated
London, UK (PRWEB UK) 4 April 2014
The penalties for breaching sanctions can be severe, both in terms of fines levied by regulators and the cost to a business' reputation if it is found to be dealing with blacklisted organisations or politically exposed persons. Therefore, the importance of undergoing strong know your customer processes to gain a full idea of who firms are doing business with cannot be underestimated. Gaining a full understanding of what companies have subsidiaries and assets that may be affected by the current crisis could be highly challenging. The research from Bureau van Dijk’s company database, Orbis, show there are over 6,000 companies that have some level of interest in Ukraine.
According to Bureau van Dijk, the country with the greatest exposure to Ukraine is Cyprus, as there are 1,155 firms registered in the Mediterranean country with assets in Ukraine - over one-sixth of the total. As a member of the EU, these organisations may well be affected by the sanctions and so any company looking to do business with these firms needs to be vigilant.
Several western European countries also had a high number of companies with registered interests in Ukraine. In the UK, there are 334 firms listed as having some level of subsidiary in the nation, while for Germany, the figure was 276, the Netherlands 232 and France 187. Meanwhile, in the US, 321 organisations have interests in the country.
Even if companies are not directly exposed to sanctions, many firms rely on the nation as a key part of their supply chain and so could be exposed to risks related to price rises and currency fluctuations.
It was noted recently by the Financial Times that Ukraine's key exports include iron, steel, mining and agricultural products, and machinery, with the EU making up around a third of the nation's external trade. Therefore, businesses that depend on these products may be particularly exposed to any instability caused by the current political situation.
Ends
Contact information:
Louise Green
Group marketing director
Bureau van Dijk
Tel: 44 (0)20 7549 5000
louise.green(at)bvdinfo(dot)com
About Bureau van Dijk
Bureau van Dijk (BvD) is one of the world’s leading business information publishers. The company has over 30 offices worldwide. BvD is best known for its range of international company information products that combines multiple high-quality data sources with flexible software to allow users to manipulate data for research, marketing intelligence and analysis. Products include Orbis, Amadeus, Bankscope, and Mint. BvD has range of Catalysts designed for its various vertical markets – including transfer pricing, credit, procurement and compliance. BvD also publishes the global M&A database, Zephyr.
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