Modevity https://modevity.com Thu, 06 Aug 2020 20:45:06 +0000 en-US hourly 1 https://wordpress.org/?v=5.4.2 https://modevity.com/wp-content/uploads/2020/03/cropped-modevity-logo-cropped-32x32.png Modevity https://modevity.com 32 32 MODEVITY IMPLEMENTS NEW AI DATABASE TECHNOLOGY SOLUTIONS TO SUPPORT INVESTIGATIVE DUE DILIGENCE RESEARCH SERVICES https://modevity.com/modevity-implements-new-ai-database-technology-solutions-to-support-investigative-due-diligence-research-services/ https://modevity.com/modevity-implements-new-ai-database-technology-solutions-to-support-investigative-due-diligence-research-services/#respond Thu, 06 Aug 2020 20:43:06 +0000 https://modevity.com/?p=880 MALVERN, Pa., August 4, 2020 — Modevity, LLC, is a leading Commercial Intelligence company established in 2004 that provides Investigative Due Diligence research reporting services.  Modevity provides these services to support several market segments and organizational use cases including, Legal, M&A Portfolio Management, Law Enforcement, Supply Chain, Executive Due Diligence and KYC. At Modevity, we recognize ... Read more MODEVITY IMPLEMENTS NEW AI DATABASE TECHNOLOGY SOLUTIONS TO SUPPORT INVESTIGATIVE DUE DILIGENCE RESEARCH SERVICES

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MALVERN, Pa., August 4, 2020 — Modevity, LLC, is a leading Commercial Intelligence company established in 2004 that provides Investigative Due Diligence research reporting services.  Modevity provides these services to support several market segments and organizational use cases including, Legal, M&A Portfolio Management, Law Enforcement, Supply Chain, Executive Due Diligence and KYC.

At Modevity, we recognize that the strength of our experienced research team is only as strong as our core database technology.  We leverage smart AI technology and data science to build fast, flexible investigative due diligence solutions tailored to the unique needs of clients in varied market segments.

Since the establishment of our company 16 years ago, we have developed and supported cutting edge technologies and solutions to support our client organizations worldwide.   Modevity continues this legacy of integrating leading technologies in expansion of our Investigative Due Diligence Research capabilities with our partner platforms like Thomson Reuters CLEAR, TransUnion TLO, Motorola Solutions Vigilant LPR, Pipl, Pacer and many other open source platforms.

These database platforms are powered by billions of data points and leverage cutting-edge public records and private data sources technology to bring all key content together.  Collectively these diverse database solutions provide our analysts with the capability to locate hard-to-find information and quickly identify potential concerns associated with people and entities to determine if further analysis is needed.  These powerful data solutions allow our research team to go deeper into client investigations and reveal connections and networks our industry competitors miss to easily connect information about people, businesses, assets, affiliations, and other vital data.

“Our extensive experience in enterprise technologies and consulting services has enabled us to continuously research new database solutions to provide the most advanced investigative due diligence research services in the industry”, stated Tom J. Canova, Co-Founder, CMO Modevity.  “Our client organizations depend on us to provide them with the most accurate due diligence research possible that will be a critical data report in their varied investigative cases,” Canova continued.

Modevity is headquartered in Malvern, PA. Find out more at  www.modevity.com

Modevity founded in 2004, developed the industry leading ARALOC™ technology solution for content security and mobile content distribution technology.  Modevity supports a wide range of clients with our Investigative Due Diligence Research Services.  GSA Schedule – Small Business / Set Aside for Federal Agencies.                                                                        

Media Relations Contact Information:
Thomas J. Canova
Co-Founder, CMO
Modevity, LLC
610-251-0700
tomc@modevity.com

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ADVISORY ON CYBERCRIME AND CYBER-ENABLED CRIME EXPLOITING THE CORONAVIRUS DISEASE 2019 (COVID-19) PANDEMIC https://modevity.com/advisory-on-cybercrime-and-cyber-enabled-crime-exploiting-the-coronavirus-disease-2019-covid-19-pandemic/ https://modevity.com/advisory-on-cybercrime-and-cyber-enabled-crime-exploiting-the-coronavirus-disease-2019-covid-19-pandemic/#respond Mon, 03 Aug 2020 19:00:21 +0000 https://modevity.com/?p=877 The Financial Crimes Enforcement Network (FinCEN) is issuing this advisory to alert financial institutions to potential indicators of cybercrime and cyber-enabled crime observed during the COVID-19 pandemic. Many illicit actors are engaged in fraudulent schemes that exploit vulnerabilities created by the pandemic. This advisory contains descriptions of COVID-19-related malicious cyber activity and scams, associated financial ... Read more ADVISORY ON CYBERCRIME AND CYBER-ENABLED CRIME EXPLOITING THE CORONAVIRUS DISEASE 2019 (COVID-19) PANDEMIC

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The Financial Crimes Enforcement Network (FinCEN) is issuing this advisory to alert financial institutions to potential indicators of cybercrime and cyber-enabled crime observed during the COVID-19 pandemic. Many illicit actors are engaged in fraudulent schemes that exploit vulnerabilities created by the pandemic. This advisory contains descriptions of COVID-19-related malicious cyber activity and scams, associated financial red flag indicators, and information on reporting
suspicious activity.

Detecting, preventing, and reporting illicit transactions and cyber activity will help protect legitimate relief efforts for the COVID-19 pandemic and help protect financial institutions and their customers against malicious cybercriminals and nation-state actors.

This advisory is intended to aid financial institutions in detecting, preventing, and reporting potential COVID19-related criminal activity. This advisory is based on FinCEN’s analysis of COVID-19-related information obtained from Bank Secrecy Act (BSA) data, open source reporting, and law enforcement partners. FinCEN will continue issuing COVID-19-related information to financial institutions to help enhance their efforts to detect, prevent, and report suspected illicit activity on its website at https://www.fincen.gov/coronavirus , which also contains information on how to register to receive FinCEN Updates.

https://www.fincen.gov/sites/default/files/advisory/2020-07-30/FinCEN%20Advisory%20Covid%20Cybercrime%20508%20FINAL.pdf

#FinCEN, #COVID-19, #cybercriminals, #Cybercrime, #BankSecrecyAct (#BSA),#FinCenupdates

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OUTSOURCING SUPPLY CHAINS – COMPLIANCE RISK & NATIONAL SECURITY https://modevity.com/outsourcing-supply-chains-compliance-risk-national-security/ https://modevity.com/outsourcing-supply-chains-compliance-risk-national-security/#respond Fri, 10 Jul 2020 18:37:00 +0000 https://modevity.com/?p=861 Fundamentally, the terms “outsourcing” and “supply chain” are used interchangeably and refer to when an organization is dependent on a third party for providing products and services. However, there are many examples of internal sourcing (or “insourcing”), where supply chains consist of entities and processes under the direct internal control of an organization such as ... Read more OUTSOURCING SUPPLY CHAINS – COMPLIANCE RISK & NATIONAL SECURITY

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Fundamentally, the terms “outsourcing” and “supply chain” are used interchangeably and refer to when an organization is dependent on a third party for providing products and services. However, there are many examples of internal sourcing (or “insourcing”), where supply chains consist of entities and processes under the direct internal control of an organization such as subsidiaries and other business units, and these should be considered along with external suppliers, especially when they are not co-located.

The coronavirus pandemic has exposed the downside with respect to outsourcing ‘critical’ products and services internationally by U.S. companies and government agencies.  These disclosures were bound to become public eventually – the pandemic has merely accelerated and intensified the security threats from such risky measures.  There have been many knowledgeable executives, consultants and analysts that have been voicing concerns over the years about the cyber security risks of global outsourcing and supply chain compliance risks.  But it took the pandemic disaster to raise concerns sufficiently for renewed calls to action.

Now, we are seeing a heightened media attention regarding organizations failure to consider the corporate supply chain compliance risks and national security threats due to outsourcing vital manufacturing to third parties both domestically and especially foreign-owned companies.

The initial obvious risk was that of depending on predominantly Asian countries for medical PPE (personal protection equipment), i.e., surgical masks, gowns, gloves, etc., for critical medical equipment such as ventilators, swabs, reagents and more, and for life-saving medications, particularly generic pharmaceuticals.  While such shortages are profoundly serious and have cost many lives, they at times fall short in comparison to threats on critical infrastructure and military systems.

An example is how America’s defense infrastructure runs on advanced electronics most of which are made abroad.  Ninety percent of the world’s printed circuit boards are manufactured in Asia, and more than half in China.  This is a consequence partly because of China’s determined effort to build up a domestic research and manufacturing base for their own advanced technologies.  Meanwhile, Chinese direct investment in American companies topped $64 billion between 1990 and 2015. While this lags behind Europe and Japan (Japan has invested around $400 billion), it does give Beijing another sizable stake in the U.S. economy and industries.

As if the prospect of American weapons being dependent on Chinese-made parts is bad enough, there are already worries that Chinese-made electronics may be infected with computer viruses that would let China spy on or disable U.S. military, commercial and consumer products.

As increasingly confrontations between the U.S., China and other countries have evolved, it appears that the Administration suddenly became aware of the U.S. dependency on foreign products that are integral to the operation of the electrical grid.  This resulted in the May 1, 2020 Executive Order (EO) 13920 on securing the American bulk power system.  The EO suggests bringing back to the U.S. the manufacturing of power-grid equipment that has been outsourced abroad.

While the EO is an important step in moving towards self-sufficiency with respect to critical power systems, it indicates a lack of understanding of the scale, difficulty, cost, time, and effort involved.  Many analysts believe that the problems of bringing manufacturing back supports the idea that this is a huge multi-hundreds-of-billions of dollars project that could span many years.

There are equally, troubling deficiencies in supply chains, not only in the vulnerability of supply chains to ‘disruptions’, but also reliance on products and services crucial to our national security.  The risks associated with outsourcing critical products and components to questionable offshore entities, particularly as they relate to national security interests will continue to increase exposure throughout organizational operations across the board.

Global outsourcing has evolved to impact many of these organizational risks:

  • Loss of control for delivery and continuation of operations
  • Lack of expertise
  • Viability of service provider
  • Quality of service
  • Reliability of product and support
  • Knowledge transfer
  • Responsiveness to support
  • Supplier Trust issues

A vital consideration from our collective organizational experiences with the pandemic is the recognition that national security and organizational operational control need to be considered when any major outsourcing decision is made.

Even if it takes much more initial investment resources and effort than would ignoring these issues, it can end up with far less compliance risk and be more cost-effective in the long term.  By allowing so much of our manufacturing capabilities to be in the hands of global offshore interests, who might become adversaries at any point in time, we have greatly increased potential security risks in the future.

Modevity Investigative Due Diligence Services provide actionable intelligence for risk avoidance in detailed reports that assist companies in assessing their supply chain.

https://modevity.com/supply-chain-risk-management/

Modevity supply chain audit services can assist you in protecting your company’s financial position, its operations, and its reputation going forward.  Our staff of veteran investigator analysts can provide timely and actionable intelligence on your entire supply chain.  Allowing you to make more informed decisions about overall operational quality and effectiveness of your supply chain.

 https://modevity.com/about/

Author: Tom J. Canova, Co-Founder, CMO, Modevity

Contact: tomc@modevity.com  610-251-0700

#SupplyChain, #ComplianceRisk, #Covid-19, #CommercialIntelligence, #SupplyChainAudit, #InvestigativeDueDiligence, #ChinaRisk, #OutSourcing, #ComplianceRisk, #Modevity, #DueDiligence, #EO, #NationalSecurity

 

 

 

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REPORT: OVER 60 COUNTRIES VIOLATED SANCTIONS WITH NORTH KOREA LAST YEAR https://modevity.com/report-over-60-countries-violated-sanctions-with-north-korea-last-year/ https://modevity.com/report-over-60-countries-violated-sanctions-with-north-korea-last-year/#respond Tue, 07 Jul 2020 14:05:52 +0000 https://modevity.com/?p=848 There are an estimated sixty-two countries that violated United Nations Security Council sanctions against North Korea over a one-year period, according to a report from a Washington, D.C.- based think tank The Institute for Science and International Security report, recently released, cites over 250 alleged violations from February 2019 to February 2020 based on data compiled by the United ... Read more REPORT: OVER 60 COUNTRIES VIOLATED SANCTIONS WITH NORTH KOREA LAST YEAR

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There are an estimated sixty-two countries that violated United Nations Security Council sanctions against North Korea over a one-year period, according to a report from a Washington, D.C.- based think tank

The Institute for Science and International Security report, recently released, cites over 250 alleged violations from February 2019 to February 2020 based on data compiled by the United Nations Panel of Experts on North Korea.

The 62 countries in violation represented an increase of six countries compared to the previous year, according to the institute.

China topped the chart with more than 60 alleged violations and Hong Kong followed with over 20. Sierra Leone, Russia and Indonesia each had a total of 10 or more alleged violations and several countries, including India, Italy, Singapore and Vietnam, had more than five violations each.

South Korea made the list for violating sanctions that included entities selling luxury goods to North Korea, including a pair of armored Mercedes Benzes, and importing coal from the North.

Surprisingly, the United States was also listed as a country through which payments related to vessels and shipping were routed.

The report noted, however, that South Korea and the United States were among the countries “reported to have taken remedying actions since becoming aware of the violations and to have prosecuted or extradited responsible companies and individuals.”

In May, the U.S. Justice Department unsealed an indictment charging 28 North Koreans and five Chinese citizens with operating a money-laundering scheme worth billions of dollars to help fund the North’s nuclear weapons program.

The United States also issued guidance in May for the maritime industry and energy sector to help avoid practices that countries such as North Korea use to evade sanctions, including secretive ship-to-ship transfers done at sea and the disabling of automatic identification systems on vessels.

The Institute for Science and International Security report found that nine countries were involved in arms sales and other military-related cooperation with North Korea, including China, Egypt, Iran and Syria.

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#NorthKorea, #Sanctions, #USJusticeDepartment,#Maritime, #ShippingViolations, #China, #Iran, #UN ,#GlobalSanctions

 

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LAW ENFORCEMENT NEW BUDGET CONSTRAINTS – NEED TO EXPAND OUTSOURCING SUPPORT SERVICES LIKE INVESTIGATIVE DUE DILIGENCE https://modevity.com/law-enforcement-new-budget-constraints-need-to-expand-outsourcing-support-services-like-investigative-due-diligence/ https://modevity.com/law-enforcement-new-budget-constraints-need-to-expand-outsourcing-support-services-like-investigative-due-diligence/#respond Mon, 06 Jul 2020 13:52:18 +0000 https://modevity.com/?p=840 As the coronavirus pandemic negatively impacts the economy and tax revenues drop across the U.S., many have begun to prepare for the hard times ahead by proposing slashed budgets and reduced public services at a time when so many of their residents need them more than ever. But the austerity programs will not be rolled out ... Read more LAW ENFORCEMENT NEW BUDGET CONSTRAINTS – NEED TO EXPAND OUTSOURCING SUPPORT SERVICES LIKE INVESTIGATIVE DUE DILIGENCE

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As the coronavirus pandemic negatively impacts the economy and tax revenues drop across the U.S., many have begun to prepare for the hard times ahead by proposing slashed budgets and reduced public services at a time when so many of their residents need them more than ever.

But the austerity programs will not be rolled out equally across services most likely.  As an example, New York City, where officials are projecting a $7.4 billion drop in tax revenue, the initial proposed budget for next year is $3.4 billion less than last year, with education and youth services facing some of the deepest cuts, and cuts slated for the police department as well.

Varied city constituents and special interest groups have long battled to save funds for public services during yearly budget negotiations, but the current health and economic crisis and civil unrest is making the debate over how cities should spend their reduced funds uniquely urgent.  At the same time, many city administrators and council members are seriously looking to save money for much needed services by cutting Police budgets with crime at historic lows.

Overall Crime in the United States has declined sharply in recent decades, as measured by traditional reporting systems.  But even as rates of homicide, robbery, burglary, and other crimes have fallen since the 1990s (although with significant upticks in violent crime in 2015 and 2016), new types of crimes – many of them enabled by technology have expanded nationwide. Internet-enabled crimes and scams show no signs of letting up, according to data released by the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) in its 2019 Internet Crime Report.  The last calendar year saw both the highest number of complaints and the highest dollar losses reported since the center was established in May.

As the type of threats communities face become more complex, law enforcement personnel need solutions that enable them to keep on top of safety threats and investigations.  New investigative data research analysis, new technology, and data sources can help law enforcement officers carry out successful investigations.

In cities across the US, Policing Budgets are being examined and hearings are being scheduled to discuss with all constituents and concerned citizens groups.  In Boston, Los Angeles, and Milwaukee, about one in every 10 dollars of local government spending goes to the police.         In Minneapolis, it is about one in every 20 dollars.  Presently, American society has not settled on what that number should be and how much of a priority the police ought to have, alongside schools and parks and housing and health care.  But the police share of spending has grown over the past 40 years, even as cities have become far safer.

Across large cities, the average share of general expenditures devoted to the police has gradually increased by about 1.2 percentage points since the late 1970s, to 7.8 percent. That change is relatively modest, but it means that residents have watched city police budgets rise by millions of dollars annually – even during lean years for city finances, and through a steep nationwide decline in violent crime that began in the early 1990s.

But these new severe governmental budget constraints and increasing mistrust towards government and law enforcement agencies will cause increased pressure to combat complex criminal activity with less financial budgeted allocated dollars for new innovative tools, technology and expand officer resources. 

Now Law Enforcement agencies are operating in a new heightened environment of ‘cost containment’ across the board not seen in years.  So, for Police Chiefs and departmental management will need to come to the negotiating table with all city administration leadership with sound strategic operational and resource plans.

Many police departments will be forced to make cuts to technology resources and officer headcount.  Also, law enforcement agencies are experiencing pressures to increase transparency in a society where trust of the government has eroded, and community policing has become a necessity.

But at the same time, new training, procedures, and technology will need to be considered and implemented to impact effective overall crime reduction and positive community engagement.

Police agencies and all levels can also consider outsourcing some key support department functions as cost-effective practice to meet their budgetary constraints. 

One of those key areas of police departmental support that can be effectively ‘outsourced’ is – Investigative Due Diligence Database Research support.

Law enforcement agencies need better systems for gathering data about the increased wave of complex crime and sophisticated criminal organizations.  It is vital in getting law enforcement agencies up to speed with new investigative data solutions and resource support, because the FBI and other federal agencies can investigate only a small fraction of these crimes.  Law enforcement agencies at all levels – local, state, and federal, must commit to take on new responsibilities for identifying these crimes and investigating them and applying new data analysis and technologies to solving them.

When City, State and Federal Law Enforcement resources are overextended and begin to reach their limitations of internal investigation resources, they face two significant problems, the long hiring / training process or inability to hire, and the bureaucratic procurement process.

Modevity Law Enforcement Support can quickly ‘Augment’ City, State and Federal law enforcement resources.  We merged enterprise database technology and open source analysis to gather, analyze, and collate public records and private data on any given case.

Modevity harnesses the power of Big Data with ‘billions of data points’ in public records and proprietary information and AI technology to meet the challenges of law enforcement agencies.

Our team of experienced investigative research analysts can locate hard-to-find information and quickly identify potential information associated with people, entities and networks that can become critical data to any ongoing investigation.

Modevity works with law enforcement agencies and police departments from initial assessment to project case conclusion.  Reports are put together by professionals experienced in navigating international business operations, including layers of offshore-holdings, complex corporate structures, and money laundering activities, etc.

Modevity Investigative Due Diligence Law Enforcement Research Support can help your investigative team as a seamless extension of your department staff to accelerate your criminal Investigations cases. 

Author: Tom J. Canova, Co-Founder, CMO, Modevity

Contact: tomc@modevity.com  610-251-0700

Law Enforcement Support / Investigative Support

#InvestigativeDueDiligence, #CriminalInvestigations, #Crime, #BigData, #Modevity, #LawEnforcement, #OutsourceInvestigativeDueDiligence, #Police, #Costcontainment, #PoliceInvestigations, #LawEnforcementBudgetcuts, #StaffOutsourcing, #DatabaseDueDiligence

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BANKS & FINANCIAL INSTITUTIONS FACE ESCALATING COMPLIANCE RISKS IN THE PANDEMIC https://modevity.com/banks-financial-institutions-face-escalating-compliance-risks-in-the-pandemic/ https://modevity.com/banks-financial-institutions-face-escalating-compliance-risks-in-the-pandemic/#respond Thu, 02 Jul 2020 17:39:07 +0000 https://modevity.com/?p=837 It’s not surprising that our current coronavirus pandemic has compelled some financial institutions to reduce staff, furlough or reassign staff at a time when applications for government relief programs are flooding in, increasing banks’ compliance risks, the Office of the Comptroller of the Currency (OCC) recently stated. On Monday the OCC, which supervises and regulates ... Read more BANKS & FINANCIAL INSTITUTIONS FACE ESCALATING COMPLIANCE RISKS IN THE PANDEMIC

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It’s not surprising that our current coronavirus pandemic has compelled some financial institutions to reduce staff, furlough or reassign staff at a time when applications for government relief programs are flooding in, increasing banks’ compliance risks, the Office of the Comptroller of the Currency (OCC) recently stated.

On Monday the OCC, which supervises and regulates banks and savings associations, said in a report that it would consider the impact of pandemic-related challenges on compliance as it conducts examinations and weighs enforcement.

The current pandemic could create challenges for many financial institutions to stand by a host of compliance policies, procedures and requirements ranging from data privacy and fair lending to efforts to combat AML, the OCC said.

It has been seen that many banks participating in the federal stimulus program for small businesses have expressed concerns that they could end up in regulatory or legal cross-hairs down the road for approving substandard loans because they let slide certain vital due diligence in an effort to disburse stimulus funds more quickly to businesses pummeled by the pandemic.  Some, however, are doing more due diligence than the stimulus program requires.

Short application processing needs for relief programs such as the Cares Act, which included direct aid ranging from forgivable business loans to cash payments for households, hospitals, cities and states, only elevate the potential risk especially if understaffed banks can’t process requests promptly, the OCC said in the report.  The applications quantity and required application-processing speed could lead to compliance shortcuts, according to the report.

Author: Tom J. Canova, Co-Founder, CMO, Modevity

KYC Support / Customer Due Diligence

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#Compliance, #AML, #KYC, #OCC, #FinacialServices, #Banks, #SavignsandLoans, #ComptrolleroftheCurrency, #BankingFraud,#BankingRegulators, #BankingFraud

 

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ACCLERATING CRIMINAL INVESTIGATIONS WITH BIG DATA & INVESTIGATIVE DUE DILIGENCE RESEARCH SUPPORT https://modevity.com/acclerating-criminal-investigations-with-big-data-investigative-due-diligence-research-support/ https://modevity.com/acclerating-criminal-investigations-with-big-data-investigative-due-diligence-research-support/#respond Wed, 10 Jun 2020 20:46:19 +0000 https://blog.araloc.com/?p=649 Today now more than ever, Law Enforcement agencies are tasked with the immense duty of keeping our communities safe.  As the type of threats communities face become more complex, law enforcement personnel need solutions that enable them to keep on top of safety threats and investigations.  New investigative data research analysis, new technology, and data ... Read more ACCLERATING CRIMINAL INVESTIGATIONS WITH BIG DATA & INVESTIGATIVE DUE DILIGENCE RESEARCH SUPPORT

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Today now more than ever, Law Enforcement agencies are tasked with the immense duty of keeping our communities safe.  As the type of threats communities face become more complex, law enforcement personnel need solutions that enable them to keep on top of safety threats and investigations.  New investigative data research analysis, new technology, and data sources can help law enforcement officers carry out successful investigations.

Crime in the United States has declined sharply in recent decades, as measured by traditional reporting systems.  But even as rates of homicide, robbery, burglary, and other crimes have fallen since the 1990s (although with significant upticks in violent crime in 2015 and 2016), new types of crimes – many of them enabled by computer technology—have begun to proliferate.

Internet-enabled crimes and scams show no signs of letting up, according to data released by the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) in its 2019 Internet Crime Report.  The last calendar year saw both the highest number of complaints and the highest dollar losses reported since the center was established in May 2000.

IC3 received 467,361 complaints in 2019—an average of nearly 1,300 every day—and recorded more than $3.5 billion in losses to individual and business victims, says the FBI.  The most frequently reported complaints were phishing and similar ploys, non-payment/non-delivery.

What do we know about the nature and extent of these computer-enabled crimes? Are increases in these types of crimes offsetting the dramatic reduction in “street crimes” that have been recorded and analyzed.

To say that new communication systems, and other computer and application technologies are changing the policing investigator profession is a vast understatement.  For law enforcement agencies to keep up in this new tech environment, their approaches to criminal investigations must change.  Relying on physical evidence and witness statements is no longer sufficient in many cases.  Investigators need to know how to access and secure data from mobile devices, social media, cloud data, and ‘Big Data.’  The reality is that the science of criminal investigations is changing rapidly, and many law enforcement agencies are not prepared for the changes that are taking place.  If law enforcement is to be successful in combating crime and solving cases in the 21st century, agencies must have the training, tools, and skilled personnel to understand the changing Tech environment.

The Work of Criminal Investigators Is Becoming More Complex

Not very long ago, detectives responding to a homicide or other serious crime had a clear focus: quickly get to the scene, collect physical evidence, and interview any witnesses.  But now criminals are using the “dark web” to make themselves anonymous online.  Even when police obtain court orders allowing them to get into a cell phone in order to find out who a victim or suspect was communicating with, they often find that there is no way to get past the user’s passcode.  Smartphone manufacturers argue that they cannot build a special “backdoor” for police to access the data in these devices, because criminals inevitably would hack into the backdoor, making everyone’s phones less safe.

Technology certainly is changing the environment every day, and most police agencies are far behind the curve.  Because policing in the United States in most cases is decentralized, there are thousands of small and medium-size agencies that lack the resources to respond to the changes cited in this blog.

Even large, well-funded agencies have a lot of work to do – finding and hiring technology experts; training officers to understand the basics of crime-related technologies; and rethinking the traditional structure of a police agency.  The old “silos,” such as special units for organized crime, gangs, and narcotics, are becoming less relevant as cybercrime becomes a part of all these traditional departments.

The status quo in law enforcement needs to be reexamined. Today’s crime-fighting challenges are far greater than in the past, but most local police agencies are nowhere near being prepared to meet the challenges.  Only a small fraction of internet-based crimes are even being reported to police, much less investigated.   Even when a crime is reported, often it is not clear which law enforcement agency is responsible for investigating it, because the victim may be located thousands of miles away from the perpetrator, in a different city, state, or even nation.  Additionally, the crime often involves a bank or other institution that may be headquartered in another location as well.

Investigative work will be slowed down when the agency or department does not know whom the job belongs to.  Local police agencies must become significantly more involved because these crimes are far too numerous to be handled solely by the FBI and other federal agencies. But unfortunately, in many of the 18,000+ local police agencies in the US, the policies and procedures are not being written, cyber experts and ‘investigative analysts’ are not being hired, and officers are not receiving the training they need to investigate these crimes.

United States Law Enforcement agencies need a new national commitment to address the growing threat of computer-based crime, like the nation’s response to the terrorist attacks of 9/11.  Existing systems for measuring, preventing, and investigating crime are obsolete.

New Investigative Due Diligence Database Research needs to be integrated into any agency or department investigative units.   Law enforcement agencies need better systems for gathering data about these new types of crime.  It is vital in getting local law enforcement agencies up to speed with new investigative data solutions and resource support, because the FBI and other federal agencies can investigate only a small fraction of these crimes.  Law enforcement agencies at all levels – local, state, and federal, must commit to take on new responsibilities for identifying these crimes and investigating them and applying new data analysis and technologies to solving them.

Changing Community Threats and Increasing Government Mistrust

Protecting your law enforcement officials has never been more difficult as our country struggles with community strains, resource limitations and radicalization.  Law enforcement agencies are experiencing pressures to increase transparency in a society where trust of the government has eroded, and community policing has become a necessity.

When City, State and Federal Law Enforcement resources are overworked and begin to reach their limitations of internal investigation resources, they face two significant problems, the long hiring / training process, and the bureaucratic procurement process.

Modevity Law Enforcement Support can quickly augment City, State and Federal law enforcement resources. We combined enterprise database technology and open source analysis to gather, analyze, and collate publicly and commercially available data on any given case.

Our Law Enforcement Support provides our client organizations with a thorough, search analysis for identifying concealed or unknown assets, social networks, corporate networks, adverse media, biographical information and more.

Harness the Power of Big Data, AI Technology & Investigative Research Analysis

Modevity harnesses the power of Big Data with ‘billions of data points’ in public records and proprietary information and AI technology to meet the challenges of law enforcement agencies.

Our team of experienced investigative research analysts can locate hard-to-find information and quickly identify potential information associated with people and entities that can become critical data to any ongoing investigation

Modevity works with law enforcement agencies and police departments from initial assessment to project case conclusion.  Reports are put together by professionals experienced in navigating international business operations, including layers of offshore-holdings, complex corporate structures, and money laundering activities, etc .

Modevity Investigative Due Diligence Support Capabilities Includes:

  • Increase Investigative Capacity
  • Reduce Officer/Agent Workload
  • Uncover Assets
  • Map Out Commercial Criminal Networks
  • Map Out Social Networks
  • Identify Community and Department Threats
  • Extensive Phone Records Data
  • Navigate Layers of Corporate Networks
  • Identify Adverse Media
  • Identify Global Sanctions and PEP’s
  • Identify Bankruptcies, Lawsuits, Liens
  • Harness the ‘Top Tier’ of Database Technology
  • License Plate Recognition & Tracking
  • Save Critical Time on Investigative Research

Modevity Investigative Due Diligence Law Enforcement research support can help your investigative team as a seamless extension of your department staff to accelerate your criminal Investigations cases. 

Author: Tom J. Canova, Co-Founder, CMO Modevity

Contact Modevity: tomc@modevity.com   office: 610-251-0700

Law Enforcement Support / Investigative Support

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#CriminalInvestigations, #Crime, #LawEnfocement, #DueDiligenceSupport, #BigData, #CriminalNetworks, #LicensePlateRecognition, #PoliceInvestigations, #Modevity, #ModevityInvestigativeDiligence

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MODEVITY INVESTIGATIVE DUE DILIGENCE SERVICES – SOLVES LAW FIRMS CRITICAL NEEDS https://modevity.com/modevity-investigative-due-diligence-services-solves-law-firms-critical-needs/ https://modevity.com/modevity-investigative-due-diligence-services-solves-law-firms-critical-needs/#respond Fri, 05 Jun 2020 14:42:24 +0000 https://blog.araloc.com/?p=644 Ways We Can Solve Law Firms’ Critical Needs Searching Google and examining Public Records as well as, private information diminishes your Legal teams’ productivity and takes valuable resources away from revenue-generating activities. Modevity investigative Due Diligence provides the dedicated research resources to reduce search time and allows your professional legal staff to focus on other ... Read more MODEVITY INVESTIGATIVE DUE DILIGENCE SERVICES – SOLVES LAW FIRMS CRITICAL NEEDS

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Ways We Can Solve Law Firms’ Critical Needs

  1. Searching Google and examining Public Records as well as, private information diminishes your Legal teams’ productivity and takes valuable resources away from revenue-generating activities.

Modevity investigative Due Diligence provides the dedicated research resources to reduce search time and allows your professional legal staff to focus on other important aspects of various cases.

Our experienced investigative analysts can search vast amounts of data quickly and efficiently through our powerful database platform.

The investigator research analysts quickly and efficiently access billions of public records in municipal, county, federal and state databases, and private data sources.  Our team can help you quickly locate data about individuals, assets, companies, adverse media, social media, litigation history, criminal records, professional licenses, patents, and more.

  1. Without experienced Investigative Due Diligence research support and powerful database technology, Law Firms are not able to connect large amounts of data and information in meaningful ways.

Our experienced Investigator analysts uncover hidden relationships and connections.      The Modevity team and database platform makes intelligent connections between people, businesses, networks, assets and locations from both public records and proprietary data.

Our extensive Investigative Case Reports provide our client law firms with a complete profile of the search subjects for individuals or entities.  Our research can uncover hidden assets and liabilities, track ownership of assets, discover liabilities, judgements, Federal and Global Sanctions, Pep Lists, liens, bankruptcies, etc.

  1. Ineffective, Out of Date or Missing Critical Information Can Make Tracking Down People Key to Your Case Nearly Impossible.

Our professional Investigative analysts have access to the most recent and comprehensive up to date contact and location information and can uncover duplicate Social Security numbers, aliases, phone numbers, social media, adverse media, etc.    Our comprehensive analysis reports will provide your team with the critical information to track down individuals for a variety of uses, including witnesses, participants, or experts quickly.

  1. Chasing Information on Legal Cases in not A Cost-Effective or Efficient Way to Operate.

Modevity investigative Due Diligence Support Services provides the dedicated research professional resources to reduce the search time, increase the volume of vital data needed and allows you to get critical case information quickly.

Modevity’s professional team can support any Law FIrm of any size to support the firm’s myriad of needs including:

  • Litigation Due Diligence Support
  • Better Understand Risks During Client Intake
  • Research Client’s Ability to Pay for Services
  • Investigate M&A Targets

Author: Tom J. Canova, Co-Founder, CMO Modevity

Contact: Tcanova@modevity.com  610-251-0700

Litigation Support

Services

#LitigationSupport, #InvestigativeDueDiligence,#ComplianceRisk, #LawFirms, #M&A, #Modevity, Publicrecords, #Legalcases, #Litigation

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LEGAL LITIGATION INVESTIGATIVE DUE DILIGENCE SUPPORT VITAL TO PREVAILING https://modevity.com/legal-litigation-investigative-due-diligence-support-vital-to-prevailing/ https://modevity.com/legal-litigation-investigative-due-diligence-support-vital-to-prevailing/#respond Wed, 27 May 2020 19:07:42 +0000 https://blog.araloc.com/?p=640 When making important business and legal case decisions, it is critical to undertake an appropriate Investigative Due Diligence research initiative.  Investigative due diligence refers to the database research and analysis of an individual or organization done in preparation for a business transaction or legal litigation strategy.  Concealed or misrepresented facts can leave companies vulnerable to ... Read more LEGAL LITIGATION INVESTIGATIVE DUE DILIGENCE SUPPORT VITAL TO PREVAILING

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When making important business and legal case decisions, it is critical to undertake an appropriate Investigative Due Diligence research initiative.  Investigative due diligence refers to the database research and analysis of an individual or organization done in preparation for a business transaction or legal litigation strategy.  Concealed or misrepresented facts can leave companies vulnerable to compliance and potential legal risk and financial loss.

Investigation Due Diligence can help mitigate risk and deliver peace of mind especially in any Legal Litigation case.  This can save clients from substantial monetary and legal case losses, as well as reputational damage.  Investigative due diligence is necessary for determining the practicality of an investment, merger, acquisition, partnership or other business relationship and any legal litigation case and dispute.

Investigative Due Diligence database research can be conducted on individuals as well as varied organizational entities. The initial investigation due diligence process focuses on obtaining information through extensive public records and proprietary databases.

Individuals may misrepresent qualifications and biographical information, which makes the verification of credentials and employment history imperative.  Additionally, Professional licenses should also be confirmed, making note of potential sanction or disciplinary histories associated with the license.  A subject’s business affiliations can indicate ownership interest in a company that has had financial difficulties, an affiliation that may have been involved in fraudulent behavior, or potential conflicts of interest.  A review of IRS filings concerning charitable giving/foundations can expose misappropriation of funds and identify concerning red flags.  Investigative Due Diligence research can also identify contributions made by an individual to a political candidate, committee or party as recorded by the Federal Election Committee.

Investigative Due Diligence database research will be conducted to identify if there is any mention in a criminal action or questionable past.  This due diligence research should be performed at the federal, state and county levels where the individual has resided and conducted business.  Civil litigation searches are another important aspect of investigative due diligence research.  Much like criminal due diligence research, civil litigation searches should be performed at the federal, state and county levels where the party has resided or conducted business. Being the subject of a lawsuit may not be adverse by itself, but it is of utmost importance to determine the types of cases in which the subject is involved.  Discovery of a litigious history involving matters such as embezzlement, tax evasion, fraud or other financial crimes can potentially save a client from a failed investment or potential lawsuit.

It is imperative to paint a picture of an individual or entity’s financial background accurately before a business relationship has commenced or a legal action is taken. Investigative Due Diligence research must be performed for any bankruptcy records, judgments, tax, and Uniform Commercial Code (“UCC”) liens in which the individual or entity is named as a debtor.  In addition, regulatory searches can help determine if an individual or entity has been the subject of an investigation or been sanctioned by an authority such as FINRA or the SEC.

Today it is vital to provide due diligence research of any adverse media and social media as a critical component in any Litigation case.  A comprehensive evaluation of news and trade publications to identify derogatory or adverse press or news articles.  Adverse media research can provide insight on an individual or entity, especially in business dealings, that did not result in civil litigation.  Social media research is important focus point of due diligence research to identify additional information about the associates, activities, and the history of a subject across multiple platforms.

Certainly, litigation costs can be overwhelming, both in legal expenditures and related business disruption.  Identifying and locating critical evidence and testimony can make the difference between winning and losing a case.  In many legal cases the very future of a company has been at stake and Investigative Due Diligence Research reports enables legal counsel teams to prevail.  There are cases where corporations have suffered billion-dollar fraud, infringement of intellectual property rights, damage to their corporate or personal reputations or persecution from false claims of wrongdoing.  Legal teams need to utilize expertise in Investigative Due Diligence Research for a vast array of public records and private data sources to get to the heart of a case swiftly and effectively.

Whether you are considering a lawsuit, or need to defend against a lawsuit, or are a Law firm supporting a client in litigation, Modevity’s Investigative Due Diligence litigation support can assist.  

Modevity Investigative Due Diligence Litigation research support can help your legal team through its legal cases by verifying or refuting basic information, credentials, accomplishments, connections, affiliations, business reputation, involvement in prior litigation, and more.

Author: Tom J. Canova, Co-Founder, CMO Modevity

#Legal Litigation Support, #LitigationSupport, #InvestigativeDueDiligence, #Litigation, #legal, #Lawsuit, #AdverseMedia, #FINRA, #SEC, #DatabaseResearch, #Ediscovery,

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KNOW YOUR CUSTOMER (KYC) PROCEDURES TO ASSESS CUSTOMER RISK & LEGAL REQUIREMENT TO COMPLY WITH ANTI-MONEY LAUNDERING (AML) LAWS https://modevity.com/know-your-customer-kyc-procedures-to-assess-customer-risk-legal-requirement-to-comply-with-anti-money-laundering-aml-laws/ https://modevity.com/know-your-customer-kyc-procedures-to-assess-customer-risk-legal-requirement-to-comply-with-anti-money-laundering-aml-laws/#respond Thu, 21 May 2020 14:17:56 +0000 https://blog.araloc.com/?p=634 Do you know your customer?  If you are a Bank or other Financial Institution (FI), you could face possible fines, sanctions, and reputational damage, if you do business with a money launderer or terrorist. More importantly, KYC is a fundamental practice to protect your organization from fraud and losses resulting from illegal funds and transactions. ... Read more KNOW YOUR CUSTOMER (KYC) PROCEDURES TO ASSESS CUSTOMER RISK & LEGAL REQUIREMENT TO COMPLY WITH ANTI-MONEY LAUNDERING (AML) LAWS

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Do you know your customer?  If you are a Bank or other Financial Institution (FI), you could face possible fines, sanctions, and reputational damage, if you do business with a money launderer or terrorist. More importantly, KYC is a fundamental practice to protect your organization from fraud and losses resulting from illegal funds and transactions.

“KYC” refers to the steps taken by a #Bank, Financial Institution to:

  • Establish customer identity
  • Understand the nature of the customer’s activities (primary goal is to satisfy that the source of the customer’s funds is legitimate)
  • Assess money laundering risks associated with that customer for purposes of monitoring the customer’s activities

To create and run an effective KYC program requires the following elements:

1) Customer Identification Program (#CIP)

How do you know someone is who they say they are? After all, identity theft is widespread, affecting over 16.7 million US consumers and accounting for 16.8 billion dollars stolen in 2017. For obliged entities, such as financial institutions, it is more than a financial risk – it is the law.

In the US, the CIP mandates that any individual conducting financial transactions needs to have their identity verified. Provisioned in the Patriot Act, the CIP is designed

to limit money laundering, terrorism funding, corruption, and other illegal activities. Other jurisdictions have similar provisions; over 190 jurisdictions around the world have committed to recommendations from the Financial Action Task Force (FATF), a pan-government organization designed to fight money laundering. These recommendations include identity verification procedures.

The desired outcome is that obliged entities accurately identify their customers.

A critical element to a successful CIP is a risk assessment, both at the institutional level and at the level of procedures for each account. While the CIP provides guidance, it is up to the individual institution to determine the exact level of risk and policy for that risk level.

The minimum requirements to open an individual financial account are clearly delimited in the CIP:

  • Name
  • Date of birth
  • Address
  • Identification number

While gathering this information during account opening is sufficient, the institution must verify the identity of the account holder “within a reasonable time.” Procedures for identity verification include documents, non-documentary methods (these may include comparing the information provided by the customer with consumer reporting agencies, public databases, among other due diligence measures), or a combination of both.

These procedures are at the core of CIP; as with other Anti-Money Laundering (AML) compliance requirements, these policies should not be followed willy-nilly. They need to be clarified and codified to provide continued guidance to staff, executives, and for the benefit of regulators.

The exact policies depend on the risk-based approach of the institution and may consider factors such as:

  • The types of accounts offered by the bank
  • The bank’s methods of opening accounts
  • The types of identifying information available
  • The bank’s size, location, and customer base, including the types of products and services used by customers in different geographic locations

2) Customer Due Diligence

For any financial institution, one of the first analysis made is to determine if you can trust a potential client. You need to make sure a potential customer is trustworthy; (CDD) is a critical element of effectively managing your risks and protecting yourself against criminals, terrorists, and Politically Exposed Persons (PEPs) who might present a risk.

There are three levels of due diligence:

  • Simplified Due Diligence (“SDD”) are situations where the risk for money laundering or terrorist funding is low and a full CDD is not necessary. For example, low value accounts or accounts.
  • Basic Customer Due Diligence (“CDD”) is information obtained for all customers to verify the identity of a customer and asses the risks associated with that customer.
  • Enhanced Due Diligence (“EDD”) is additional information collected for higher-risk customers to provide a deeper understanding of customer activity to mitigate associated risks. In the end, while some EDD factors are specifically enshrined in a country’s legislations, it is up to a financial institution to determine their risk and take measures to ensure that their customers are not bad actors.

3) Ongoing Monitoring

It is not enough to just check your customer once; you need to have a program to monitor your customer on an ongoing basis. The ongoing monitoring function includes oversight of financial transactions and accounts based on thresholds developed as part of a customer’s risk profile.

Depending on the customer and your risk mitigation strategy, some other factors to monitor may include:

  • Spikes in activities
  • Out of area or unusual cross-border activities
  • Inclusion of people on sanction lists
  • Adverse media mentions

There may be a requirement to file a Suspicious Activity Report (SAR) if the account activity is deemed unusual.

Periodical reviews of the account and the associated risk are also considered best practices:

  • Is the account record up to date?
  • Do the type and amount of transactions match the stated purpose of the account?
  • Is the risk-level appropriate for the type and amount of transactions?

In general, the level of transaction monitoring relies on a risk-based assessment.

An integrated approach to critical KYC Support and Customer Due Diligence (CDD) can improve visibility into potential risks.  This includes financial crimes like money laundering and terrorist financing while providing valuable insight into customer life events and changes.

The Modevity KYC and CDD services combine powerful database search technology and expansive global risk intelligence to support our customers.

We partner with the best of breed global data providers.  Our ‘outsourced’ Investigative Due Diligence Services can augment and extend your existing KYC capabilities.  Contact us for further details on how we can help you save time and money by quickly and effectively avoid regulatory and reputational risk.

 Author:  Tom J. Canova, Co-Founder, CMO Modevity 

Contact: tomc@modevity.com  610-251-0700   

https://modevity.com/kyc-support/

#KYC, #AML, #Banks, #FinancialInstitutions, #Compliance, #ComplianceRisk, #RiskManagement, #KnowYourCustomer, #CIP, #CustomerIdentificationProgram, #Modevity,#CommercialIntelligence,InvestigativeDueDiligence, #OutsourceDueDiligence, #CDD, #CustomerDueDiligence

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COMMERCE TIGHTENS RESTRICTIONS ON TECHNOLOGY EXPORTS TO COUNTRIES OF CONCERN, IN PARTICULAR CHINA, RUSSIA & VENEZUELA https://modevity.com/commerce-tightens-restrictions-on-technology-exports-to-countries-of-concern-in-particular-china-russia-venezuela/ https://modevity.com/commerce-tightens-restrictions-on-technology-exports-to-countries-of-concern-in-particular-china-russia-venezuela/#respond Mon, 18 May 2020 14:36:00 +0000 https://blog.araloc.com/?p=629 The Department of Commerce’s Bureau of Industry and Security (“BIS”) published two new final rules and a proposed rule in the Federal Register amending the Export Administration Regulations (“EAR”) to tighten restrictions on exports of technology to China, Russia, and Venezuela. According to Commerce Secretary Wilbur Ross, these actions are intended to combat efforts by ... Read more COMMERCE TIGHTENS RESTRICTIONS ON TECHNOLOGY EXPORTS TO COUNTRIES OF CONCERN, IN PARTICULAR CHINA, RUSSIA & VENEZUELA

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The Department of Commerce’s Bureau of Industry and Security (“BIS”) published two new final rules and a proposed rule in the Federal Register amending the Export Administration Regulations (“EAR”) to tighten restrictions on exports of technology to China, Russia, and Venezuela. According to Commerce Secretary Wilbur Ross, these actions are intended to combat efforts by entities in China, Russia, and Venezuela to use certain US technologies obtained through civilian supply chains or under civilian-use pretenses to develop weapons, military aircraft, and surveillance technology contrary to US national security interests.

As a result of these rules, a universe of transactions involving widely commercially available US technologies that require BIS licenses could dramatically increase, particularly for China — with the licensing policy of the presumption of denial making such licenses difficult to obtain. These rules are part of a broader wave of recent regulatory measures aimed to strengthen the US Government’s restrictions on, as well as visibility into, technology transfers to China and other countries of concern to protect US national security and foreign policy interests.

As described further below, the rules:

  1. amendthe EAR to expand license requirements on exports, reexports, and transfers (in-country) of items intended for military end-use or military end-users in China, Russia, or Venezuela;
  2. proposeto modify License Exception Additional Permissive Reexports (“APR”) to remove provisions authorizing certain reexports of national security-controlled items; and
  3. removeLicense Exception Civil End Users (“CIV”) for national security-controlled items on the Commerce Control List (“CCL”) to countries of national security concern.

Expansion of Military End Use/User Controls for China, Russia, and Venezuela

The Commerce Department is broadening the US Government’s visibility into and ability to deny or condition exports, reexports, and transfers (in-country) involving certain items on the CCL destined to military end users or military end uses in China, Russia, or Venezuela. The final rule, which becomes effective on June 29, 2020, provides for the following changes to the EAR:

  • Military end user-based licensing requirements for China

The licensing requirements for China are strengthened to include exports/reexports of designated items to military end users in China unless License Exception GOV applies. The existing licensing requirements for military end users only apply to Russia and Venezuela. The EAR’s definition of “military end user” is not changing and continues to apply broadly to “national armed services (army, navy, marine, air force, or coast guard), as well as the national guard and national police, government intelligence or reconnaissance organizations, or any person or entity whose actions or functions are intended to support ‘military end uses’.” (Emphasis added.) The expansion of the license requirements to exports/reexports destined to “military end users” in China will, however, significantly increase compliance burdens on companies supplying designated items to China. In particular, given China’s integration of its civilian industries with the military sector, vetting Chinese entities for purposes of ensuring compliance with the end user-based license requirements is likely to pose considerable challenges.

Further, given the breath of the definition of “military end user,” along with the just expanded definition of “military end-use” (see below), a universe of transactions triggering license requirements could significantly increase. Supplying designated items to Chinese companies that engage in any (even de minimis) degree of business in support of military end-uses, could trigger licensing requirements. For example, Chinese semiconductor foundries could constitute “military end users” if even a small volume of semiconductor wafers they produce is used for integrated circuits for incorporation into defense articles. The consequence would be that US semiconductor tool manufacturers would have to obtain licenses to sell and supply semiconductor tools classified under ECCN 3B991 to such foundries. Similarly, Chinese aircraft maintenance organizations that furnish maintenance services for both commercial and military aircraft could constitute “military end users, ” resulting in a license requirement for US suppliers of aircraft parts classified under ECCN 9A991, even if those parts could only be used for a commercial aircraft.

In sum, should the US Government adopt a broad interpretation of these terms, US companies supplying non-sensitive, broadly available items to Chinese companies for civilian applications (e.g., items classified under ECCNs 3A991, 3B991, 5A992, or 9A991) may need BIS licenses, which would be difficult to obtain given the licensing policy of denial (see below). This could have a detrimental impact on a broad swath of US industry, in particular in the semiconductor, telecommunications, and aircraft sectors. BIS has indicated that it will be issuing guidance to industry to help clarify the expanded licensing requirements for China.

  • Expanded definition of “military end use”

The definition of “military end use” has been changed from covering items for the “use,” “development,” or “production” of military items (as those terms are defined in the EAR) to also include any item that supports or contributes to the operation, installation, maintenance, repair, overhaul, refurbishing, “development,” or “production” of military items. By expanding the definition to include items that support or contribute and by making a single element of the definition of “use” trigger the license requirement, the reach of the military end use-based restrictions could be extremely broad, possibly covering any peripheral item that could in any way be linked to a military item.

  • Broader list of items covered by military end use/user licensing requirements

The list of items subject to the military end use and military end user license requirements in Supplement No. 2 to part 744 is being expanded to include the following Export Control Classification Numbers (“ECCNs”) in the categories of materials processing, electronics, telecommunications, information security, sensors and lasers, and propulsion: 2A290, 2A291, 2B999, 2D290, 3A991, 3A992, 3A999, 3B991, 3B992, 3C992, 3D991, 5B991, 5A992, 5D992, 6A991, 6A996, and 9B990. Notably, these changes roll out military end use/end user controls to items that are commercially widely available and are not inherently sensitive but rather could be important building blocks or components for products and technologies that China, Russia, and Venezuela may be developing to strengthen their military capabilities. As such, the expansion is significant and will require the suppliers of the designated items to go through a rigorous vetting process to determine whether the items destined to China, Russia, of Venezuela are being sourced for a military end user or a military end use.

Modevity Investigative Due Diligence Services provide actionable intelligence for risk avoidance in detailed reports that assist companies in assessing their supply chain and adhering to federal regulatory Sanctions compliance requirements.

Modevity supply chain audit services can assist your organization in protecting your company’s financial position, its operations, and its reputation going forward. Our staff of veteran investigators can provide timely and actionable intelligence on your entire supply chain. Allowing you to get on with what is important.

#Commerce’sBureauofIndustryandSecurity (“#BIS”), #ExportAdministrationRegulations (#EAR),#Sanctions,#SupplyChain, #NationalSecurity, #Comliance, #ComplianceRisk, #RiskManagment

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HOW WILL COVID-19 AFFECT VENTURE CAPITAL INVESTMENT STRATEGIES AND VENTURE-BACKED STARTUPS? https://modevity.com/how-will-covid-19-affect-venture-capital-investment-strategies-and-venture-backed-startups/ https://modevity.com/how-will-covid-19-affect-venture-capital-investment-strategies-and-venture-backed-startups/#respond Wed, 13 May 2020 20:58:21 +0000 https://blog.araloc.com/?p=618 No doubt, COVID-19 is shaking up the markets, and we are seeing more uncertainty in the public markets and venture segments than we have since 2008. VC Investments Will Likely Become Somewhat More Conservative Among the #VCs the general response to various industry surveys, a little more than half thought they would make fewer and ... Read more HOW WILL COVID-19 AFFECT VENTURE CAPITAL INVESTMENT STRATEGIES AND VENTURE-BACKED STARTUPS?

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No doubt, COVID-19 is shaking up the markets, and we are seeing more uncertainty in the public markets and venture segments than we have since 2008.

VC Investments Will Likely Become Somewhat More Conservative

Among the #VCs the general response to various industry surveys, a little more than half thought they would make fewer and small investments into next year, although almost half predicted no change.

More interestingly, though, a vast majority expected to invest at smaller valuations. Even though many firms are split on the question of whether their own investments would become more conservative, almost all of them thought that the market (including other private investors) would rate potential investments more conservatively.

VC Funds Want To Help Their Investments Through This, From A Strategy Standpoint

About 80% of surveyed VC firms were in touch with their portfolio companies to offer guidance and hear grievances, VCs in general still want to help their companies succeed. It seems like the VC community is interested in making sure their investments survive for the long term, but not banking on it.

Vcs At This Point Think Caution Is The Best Plan

Overwhelmingly, VC firms are of the opinion that their portfolio companies should (at least for the moment) play it safe and make no sudden moves.  Cautiously advancing core business was the is their primary recommendations and that aligns well with the forecast for the private markets as a whole:  If everyone is aggressive, we all burn capital. If everyone is too conservative, the market dries up.  It appears like VCs seem to agree that playing it close to the chest for the moment is the best way for both specific companies and the market as a whole to get through this downturn without going into total panic mode.

However it should be noted that adhere to the strategy of “Buy When There’s Blood in the Streets”  is still a minority view of less than 15% were advising portfolio companies to “move fast when others and win market share while others are fearful.”

It Is Unclear How The Last Six Months’ Valuations Should Be Adjusted

When the market goes through a significant adjustment like this, what should happen to recent independent valuations?  It turns out, over half of VC are not sure.  The #COVID-19 market effect constitutes a material event for all private investments. Startup management teams can both give a better equity deal to their employees and prevent venture-killing down rounds by dealing with this now and re-establishing Fair Market Value in the context of the new market dynamics. While much remains uncertain, many investment analysts do not see the market pretending this episode in history did not happen and believe that companies and their investors will begin to act accordingly.

Modevity Investigative Due Diligence Services provide actionable intelligence for risk avoidance in detailed reports that assist VC’s and Equity Firms in assessing their new venture deals and portfolio companies.

Modevity M&A and Investment Portfolio database research services can assist you in protecting your company’s financial position in any level of deal and its reputation going forward.  Our staff of veteran research analysts can provide timely and actionable intelligence on your entire investment portfolio. Allowing you to get on with what is important.

Author:  Tom J. Canova, Co-Founder, CMO, Modevity

Contact: 610-251-0700

Due Diligence for Portfolio / M&A

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