Politically Exposed Persons (PEPs) present unique risks for businesses due to their potential involvement in financial misconduct. Effective PEP screening is essential to safeguard compliance and protect business integrity.
The Reserve Bank of India (RBI) reported 23,953 fraud cases amounting to over USD 4 billion in FY 2024-25, a sharp increase from USD 1.39 billion the previous year, despite a decline in the number of cases. Digital transaction frauds, primarily involving card and internet-based payments, were the most frequently reported. These often involve unauthorized access to customer data by third parties, but they can also be committed by the customers themselves.
In the first ten months of FY25, digital financial frauds in India surged to USD 482.5 million across 2.4 million incidents, as reported by the Ministry of Finance. This marks a 67% increase from FY23, reflecting the growing scale of financial crime.
In today’s digitally intertwined world, data rarely stays confined within national borders, and neither do the laws that govern it. Cross-border data transfers are now a routine part of global business, but they come with legal and operational risks. In India, the average cost of a data breach has surged to US$2.52 million, highlighting the financial impact of non-compliance.
India’s maritime sector plays a crucial role in the national economy and strategic planning, supported by a 2,500-kilometre coastline and a network of 12 major and over 200 minor ports. With around 95% of trade by volume and 70% by value moving through maritime transport, the sector plays a significant role in building the nation’s GDP. This growth brings increased complexity and demands stronger oversight. Maritime compliance and risk management goes beyond ships and ports, they extend across the entire supply chain, including factories, refineries, trucking companies, and key personnel.
In today’s business environment, reputation risk is a growing concern for organizations. A recent survey claims most professionals anticipate a rise in financial crime, while only 36% consider their company’s compliance program as highly effective – a clear gap between rising threats and organizations’ ability to manage them. To protect reputation, financial stability, and regulatory compliance, Integrity Due Diligence helps businesses identify and mitigate risks.
Risks in the supply chain is not only from the product itself, but many also arise from people, locations, and hidden connections. A recent report revealed that ~9% of reported issues stem from poor due diligence on people and third-party partners behind them. While companies are often diligent about verifying the quality of products and services, they frequently overlook the stakeholders behind them.
In a recent incident, a startup reported over $200 million in revenue for 2024, a 3x exaggeration over its actual earnings. This involved billing another entity for services that never occurred, creating an illusion of growth and of valuation. Such practices reflect a deeper issue: the growing misuse of financial data in pursuit of market advantage, which undermines transparency and raises serious concerns about corporate ethics.
Due diligence is a critical process that must be executed with care and integrity. Its proper execution is essential to make informed choices. When this process is performed merely as a procedural formality, it fails to fulfil its core purpose. In certain cases, due diligence that is not just inadequate but deeply flawed or neglected is referred to as egregious due diligence.
Compliance in India has changed over the years. India’s regulatory universe is estimated to comprise 1,536 Acts, 69,233 compliances, and 6,618 filings. Keeping track and staying compliant is a big challenge that companies face these days. As compliance requirements have evolved, the approach has also changed. From traditional methods to technology-integrated models are being adopted to make the process easier.