Paul Westcott, Product Director Compliance, Dun & Bradstreet

1. CAROLYN BANCROFT
Understanding
Beneficial Ownership
through D&B Data
and Neo4j
Paul Westcott

2. 2
Meet your presenter
Public
Paul Westcott
Product Director Customer
Due Diligence Solutions
Dun & Bradstreet

3. 3
Providing the single source of
truth for the largest risks facing
companies in this unprecedented
regulatory environment
THIRD PARTY RISK &
COMPLIANCE
SOLUTIONS
Supplier
Intelligence
Know Your
Customer
REDUCE COSTS
MANAGE RISK
ACCELERATE DUE DILIGENCE
PROTECT REPUTATION
& BRAND 3
Know Your Third
Party

4. AgendaHistory Lesson

5. 5
25 June
2015
26 June
2017
9 July
2018
10
January
2020
10 March
2021
Fourth AML Directive
Fourth AML Directive implemented
by member states
Fifth AML Directive
Member states must implement
Fifth AML Directive into National law
Interconnection of ‘UBO’ registers
at EU level
Public
Financial Institutions had to work with new beneficial ownership
rules

6. 6Public
Identify
• Identify the
specific client
that is being
enquired upon
and wants to
work with you
Verify
• Verify a set of
data against
that business
based on Risk
based
approach
(higher the risk
the more data
is required)
Enrich
• Establish who
is connected to
your client and
determine
Ultimate
Beneficial
Owners
Screen
• Screen entities
against
sanctions list,
or establish
adverse media
or Politically
exposed
persons
Monitor
• Monitor for changes to ensure continued compliance
Audit
• Demonstrate adherence to policy for each case
Each step takes time, and cost, financial institutions need to comply with the regulations
but make sure the administrative burden does not affect the bank or the clients
experience
Directives become policies and processes to ‘onboard’
clients

7. What is a “Beneficial Owner”?
“THE NATURAL PERSON(S) WHO ULTIMATELY OWNS OR CONTROLS A LEGAL
ENTITY”
C O M P A N Y B
B A S E D I N
R U S S I AC O M P A N Y A O W N S 1 0 0 %
O F C O M P A N Y B S T O C K
John also has 100% Beneficial Ownership of
Company B via his ownership in Company
A
John has 100% direct ownership of
Company A, therefore he also has 100%
Beneficial Ownership of Company A
J O H N C O M P A N Y A B A S E D I N U K
J O H N O W N S 1 0 0 % O F
C O M P A N Y A S T O C K
7
So what were the regulators asking in reality for
ownership?

8. 8Public
Five biggest
banks in the UK,
have all been
fined for money
laundering
offences
EU banks payed
over $16 billion
in fines between
2012 and 2018
due to
lax money-
laundering chec
ks
A record
number of AML-
related fines
were issued
globally in 2019,
totaling £6.2B in
penalties
90% of the EU’s
biggest banks
having been
sanctioned for
money
laundering
offences
Financial Institutions need help in quickly have a consistent, timely and accurate approach to using the data required for client
onboarding
Why does this matter?

9. 9IPublic
Speed
We need to have an
immediate answer to
the question who
owns this business
not wait days
Availability
Hard to follow the trail
or join together data
across the globe
Accuracy
Difficult to ensure
calculations are made
against the right entities
Ineffectual
Outreach
Collection process is
costly and time
consuming with poor
results
Inconsistency
Various ownership
definitions lead to
redundant operations
across business units
Cost
Whilst cost of not
doing work is great,
the operational costs
are rising year on
year to keep up with
regulatory demands
The customer pain points we consistently heard where
clear

10. What did D&B and NEO4j do together to solve the problem
• 300m businesses
• 115m shareholder
• 160m principals
• 200 countries
• Live / continuous multiple global feeds

11. 11
LOGO
Premier League Club
Official Companies House
view
Based on D&B / NEO4J
Beneficial Ownership
Chelsea Football Club Limited Fordstam Limited Mr Roman Abramovich
The Liverpool Football Club And
Athletic Grounds Limited
Uksv Holdings Company
Limited
Mr John Henry
TOTTENHAM HOTSPUR
FOOTBALL & ATHLETIC CO. LTD
TOTTENHAM HOTSPUR
LIMITED
Mr Joseph Charles Lewis
MANCHESTER CITY FOOTBALL
CLUB LIMITED
Abu Dhabi United Group For
Development & Investment
Mr H.H. Mansour Bin Zayed Al
Nahyan
NEWCASTLE UNITED
FOOTBALL COMPANY LIMITED
Newcastle United Limited
Mr Michael James Wallace
Ashley
AFC BOURNEMOUTH LIMITED Mr Maxim Victorovich Demin Mr Maxim Victorovich Demin
EVERTON FOOTBALL CLUB
COMPANY, LIMITED
Ardavan Farhad Moshiri Ardavan Farhad Moshiri
WEST HAM UNITED FOOTBALL
CLUB LIMITED
West Ham United Limited
Mr David Sullivan, Mr David
Gold
Public

12. 12Public
With Graph technology D&B customers get…
Consistent results & faster client onboarding
Instant answers to questions with the query
run in real time
Reduction in cost as they did not have to rely
on client outreach programs
Better accuracy by using the imperial data
and the Network that can be created to
calculate ownership even if it cross borders or
had degrees of separation
The context with simpler to understand data
through a network and visual tools that make
it easy to see the true picture

13. •Holistic view ‘who owns me and who do I own’?
•‘Person centric’ view
•Resolving entities in the Network for more
accurate results
The future…

14. 14
Q A