IM Yearbook 2020/21

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DUE DILIGENCE ROUND TABLE NEVER MISS A RED FLAG Is the Standardisation of Due Diligence the Way Forward? Four due diligence experts review the state of play of due diligence in the investment migration industry and outline how the standardisation and harmonisation of processes might lead to better outcomes for the sector in a world of increasing regulation and scrutiny. James Swenson Senior Vice President, Diligence, and Head of EMEA & APAC at Exiger Diligence Sylwia Wolos Risk Solutions Consultant Enhanced Due Diligence at Refinitv Laura Austin Head of Investment Migration Due Diligence at BDO Eddy Leviten Chief Operating Officer at FACT 76 Investment Migration Yearbook 2O2O/2O21
Due diligence has long been a thorny issue for the investment migration industry, with scandals reported in the media repeatedly suggesting that the depth and breadth of checks on applicants, their family members and the origin of their funds vary significantly. In 2019, the Investment Migration Council, in coordination with BDO, Exiger and Refinitiv, formed a Due Diligence Working Group to examine to explore the potential for minimum standards across the industry. The working group published two reports which aim to address the issues that arise from a lack of harmonised standardised and can be downloaded from the IMC website. The experts agree: The best due diligence is not only about gathering information and data, it is also about harmonising the system of checks and balances that different stakeholders in the investment migration industry have in place. How would you describe the current state of play of due diligence in the investment migration industry? And what would you highlight as the most important recommendations of the due diligence reports published by the IMC? JS: There is a dire need for more uniform application of due diligence across the industry. We all know there are certain programmes that are doing a lot in terms of vetting; but there are also numerous ones that do little to nothing. In my personal view, these issues are exasperated by the sheer lack of transparency amongst many programmes, especially residency-by-investment programmes. All programmes should be transparent about the level of due diligence they undertake and how the results are used to make informed decisions. Until this happens, critics will continue to assume no due diligence is done. For the first time, the two reports started to define the roles and responsibilities of agents, government programmes, and third party due diligence providers in safeguarding the integrity of our industry. This is critical because we have traditionally assumed the responsibility of due diligence sits only with the government programmes, but there are other gatekeepers along the way, like agents, who can weed out bad actors from the very beginning through standard know-your-customer (KYC) checks. SW: To me, the most important takeaways from this project and resulting publications are the need for increased transparency, the need for clarity of roles and the need for practical solutions. It’s important that data and facts-based information is provided to external stakeholders so that they can comprehensively understand what the due diligence processes within some CIUs are. In terms of the clarification of roles, we need to understand that while the application approval responsibility lies with the governments, each of the stakeholders engaged in the process carries responsibility for managing financial crime risk exposure. It’s the first time these various roles have been clarified in the sector. The second report provides a very tangible, practical set of tools and recommendations, making it much easier to build the risk management process or review and improve an existing one. LA: The central theme of the two reports is the necessity of uniform minimum due diligence standards for both government programmes and agents. Uniform standards, coupled with strong governance and transparency into the measures being taken, will lead to a more secure industry, a more even playing field for industry participants, and will significantly contribute to the industry’s perception and reputation issues. The reports provide detailed guidance for minimum due diligence standards, including five-step processes for both government programmes and agents. While government programmes are the ultimate decisionmakers, the suggested added level of responsibility and involvement for agents is a further sign of the industry’s desire to implement strong governance and oversight. Although implementation and regulation of the standards outlined in the two reports remain the subject of further debate, the reports are a significant and cohesive step in the right direction, and the first of its kind within our industry and across providers. We have traditionally assumed the responsibility of due diligence sits only with the government programmes, but there are other gatekeepers along the way, like agents, who can weed out bad actors from the very beginning through standard know-your-customer (KYC) checks. James Swenson Investment Migration Yearbook 2O2O/2O21 77
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IM INVESTMENT MIGRATION Win-Win Pat
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from IMC Education and Training: Gi
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INDATA Key Facts and Figures 100-60
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750 Million People Would Like to Mo
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INDUSTRY OVERVIEW DOUBLING DOWN ON
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A Changing Market China has long be
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What’s your economic outlook for
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400+ MEMBERS FROM 55+ COUNTRIES Int
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Covid-19 is upending the investment
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Interview with KRISTIN SURAK, Assis
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Interview with BRUNO L’ECUYER, Ch
Page 28: When the news broke about covid-19,
Page 31 and 32: on investment migration, the Commis
Page 33 and 34: C0% WE ARE PLEASED TO ANNOUNCE THE
Page 35 and 36: two stages: administrative and judi
Page 37 and 38: In conversation with KIERON SHARP,
Page 39 and 40: ● Codrington Although initially i
Page 41 and 42: Interview with GASTON BROWNE, Prime
Page 43 and 44: What are SDGs? They are a set of 17
Page 45: Another feature of investment migra
Page 48 and 49: ADVERTORIAL VCA boasts a specialize
Page 50 and 51: WHAT’S GOING ON IN… Programme U
Page 52 and 53: Europe Europe’s attractiveness as
Page 54 and 55: Southeast Asia Southeast Asia is th
Page 56 and 57: Interview with ALEX MUSCAT, Malta
Page 58 and 59: Simplicity. Safety. Sophistication.
Page 60 and 61: INVEST IN PARADISE. MAKE IT HOME A
Page 62 and 63: FIRST PERSON BOB KRAFT, Chairman, P
Page 64 and 65: LESSONS FROM LOCKDOWN MRVA SEES PRO
Page 66 and 67: RISK PROFILES CHANGE Don’t Be the
Page 68: Impact on the IM Industry Countries
Page 71 and 72: These programmes are not going to b
Page 73 and 74: IN THEIR W,RDS “I decided to foll
Page 75 and 76: A LOCAL PARTNER YOU CAN TRUST. With
Page 77: WORKING WITH THOSE YOU TRUST THE IM
Page 81 and 82: There is scope to introduce a minim
Page 83: United Kingdom United States Turkey
Page 86 and 87: Economic Impact Economically, Seixa
Page 90 and 91: Lose yourself… …and regain your
Page 93 and 94: HOW WE CONDUCT IN-COUNTRY CHECKS IN
Page 95 and 96: Beijing, China “Wealth creation i
Page 97 and 98: “Wherever I go, I want to be a ch
Page 100 and 101: INVESTING IN A GL BAL Rupert Gather
Page 102 and 103: In conversation with PARAG KHANNA,
Page 104: THE IMPORTANCE OF EB-5 Due Diligenc
Page 107 and 108: MARC AUDET PRESIDENT AND CEO AURAY
Page 109 and 110: KIERON SHARP CHIEF OPERATING OFFICE
Page 111 and 112: FRÉDÉRIC VILLA MANAGING DIRECTOR
Page 113 and 114: ROGELIO CACERES FOUNDER & CEO RCG G
Page 116: Save the Date The Investment Migrat
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IM Yearbook 2020/21

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