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Unqualified or Disqualified Vendor Solution

A solution providing a complete profile of reseller's qualifications.

Unqualified or Disqualified Vendor Solution is designed to assist companies who have concerns about resellers trying to avoid qualification requirements or circumventing disqualification decisions by the client.

This solution helps clients identify:

companies which are de-licensed, banned or otherwise disqualified who reopen under another name in order to resume business
cases of "connected" individuals, often with no relevant expertise, quickly opening up companies to take advantage of "guanxi" contracts
situations where key principals of the subject company open up other companies owned by themselves or family members in order to provide bogus services such as “consulting” as a conduit to steal or divert funds from the client in order to facilitate illegal activities such as the payment of bribes.

Solution Elements

Technology - ComplianceDesktop® Technology Platform

Questionnaire Tool™
- Partner Questionaire Approval/Review process
- Partner Questionnaire Risk Scoring
Partner Manager
- pARpppTrack all interactions with a partner

Due Diligence

High, Medium, Low and Enhanced level due diligence cases
IntegraWatch® | Self-Service Watchlist

Solution Process

The usual process to implement such a solution is for our advisory team to meet with the client legal and compliance teams to discuss the prevalence and nature of the unqualified vendor issues. In our experience, we have discovered that there are often region-specific issues and tactics used in certain markets to obfuscate ownership, insert an illegitimate "consultant" into a business deal, or to transform a disqualified partner into a seemingly new partner.

Utilising the Questionnaire Tool™, the client collects key information from their partners and maintains a database of the information gathered on these business partners. Through the embedded risk scoring and review process the client can determine each partner’s risk based on the information gathered and then assign appropriate risk-mitigation procedures. Partners with possible issues around being unqualified or disqualified are flagged and recorded as part of this process.

The Partner Questionnaire Approval/Review process collects data from the questions completed by the business partner which are then reviewed by the client. This process allows the client to review the partner’s details as well as collect and maintain its own impressions and information on the partner. During this process the suspect entities are flagged for higher level due diligence. Once the collected information and risk scores have been reviewed and flagged by the client, the client then approves the case for activation and our teams start the due diligence process.

Based on the score and flagging, risk-appropriate due diligence is performed on the higher risk partners. These may be High, Medium, Low or sometimes even Enhanced level cases. The cases will involve several facets to unearth evidence of disqualification, lack of qualifications, or obscured ownership. These include:

corporate registry reviews to establish the legitimacy and length of operation of the subject partner company
media and internet profiling to uncover questionable practices and integrity risks relating to the partner company or its key personnel
site visits and reputational enquiries to check the legitimacy and level of operations of the subject company
media and internet profiling as well as litigation checks with local courts to determine whether the partner has a history of legal issues
reverse legal representative and directorship checks on key principals and owners of associated companies.

Completed cases are delivered and stored within the Due Diligence Manager where the client may review them for evidence of being unqualified or disqualified. Those vendors with extensive irregularities can be eliminated at this point. Partners with less serious issues may then be remediated in line with recommendations as outlined in the due diligence report. This remediation process can then be tracked and documented through the Partner Manager and Remediation Tool until an appropriate resolution has been achieved.

The Partner Manager is an online tool to maintain and manage your database of business partners, allowing you to: