Financial Services Firm Detects $35K Fraudster in Vendor Base
A financial services firm's enhanced due diligence process uncovered a vendor principal with a history of fraud, preventing potential losses and regulatory issues.
The Challenge
As a regulated financial institution, the firm was required to perform thorough due diligence on all third-party vendors. Manual processes were time-consuming and inconsistent, making it difficult to maintain compliance with OCC guidance on third-party risk management.
The Approach
VenLink implemented a risk-based due diligence workflow that automatically adjusted screening depth based on vendor criticality and access to sensitive data. Enhanced screening included beneficial ownership verification and cross-referencing against regulatory databases.
Implementation Timeline
How the solution was deployed and results were achieved
by Compliance Officer
by Risk Committee
The Outcome
During routine screening of an IT services vendor, the system identified that a company principal had previous involvement in a wire fraud case. The vendor had been providing services for six months before VenLink implementation. The firm immediately terminated the relationship and enhanced access controls. While the vendor had not committed any fraud against the firm, the discovery prevented potential future losses and demonstrated robust vendor oversight to regulators.
"VenLink gave us the due diligence capability we needed to meet regulatory expectations without adding headcount."